Uganda and Tanzania have entered a new era of energy cooperation after President Yoweri Museveni and Tanzanian President Dr. Samia Suluhu Hassan witnessed the signing of a strategic Memorandum of Understanding (MoU) to develop the Tanga Regional Energy Hub, a major project expected to reshape petroleum logistics and energy security in East and Central Africa.
The agreement was signed in Dar es Salaam between the Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C., marking a significant step toward expanding regional energy infrastructure and strengthening economic ties between the two neighbouring countries.President Museveni, who was in Tanzania for a two-day official visit, held bilateral discussions with President Samia on deepening cooperation in trade, infrastructure and energy development before witnessing the signing ceremony at State House in Dar es Salaam.
The planned Tanga Regional Energy Hub will serve as a strategic centre for petroleum storage, distribution, logistics and trading, complementing Uganda’s growing oil and gas sector, including the proposed 60,000-barrel-per-day Hoima Refinery. The project is also expected to enhance cross-border petroleum flows and improve energy reliability across the region.Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, described the partnership as a major milestone in promoting industrial growth and regional integration.
She noted that feasibility studies for a refined petroleum products pipeline and a regional storage facility are expected to be concluded later this year, while assessments for a natural gas pipeline between Uganda and Tanzania are scheduled for completion by October 2026.Dr. Musenero further highlighted progress on the Uganda–Tanzania 400kV electricity interconnector project, revealing that Uganda has secured US$250 million in World Bank financing to support the development of its section of the transmission line.Tanzania’s Energy Minister, Hon. Deo Ndejembi, said the Tanga Hub represents a continuation of the successful cooperation established through the East African Crude Oil Pipeline (EACOP).
He revealed that the project could attract investments of more than US$20 billion and position the region as one of Africa’s leading energy logistics destinations.Ndejembi emphasized that the Tanga Energy Hub and Uganda’s Hoima Refinery are complementary projects designed to work together rather than compete. He added that the proposed multi-product pipeline would allow efficient movement of refined petroleum products between Uganda and Tanzania, strengthening supply chains and meeting the growing energy demands of the region.
