Uganda and Tanzania Forge Deeper Energy Ties with Tanga Hub Agreement

Presidents Yoweri Kaguta Museveni of Uganda and Dr. Samia Suluhu Hassan of Tanzania have marked a new era of bilateral cooperation with the launch of a joint energy initiative. During President Museveni’s visit to Dar es Salaam, the two heads of state witnessed the signing of a Memorandum of Understanding (MoU) between the Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C.

The agreement focuses on the joint development of the Tanga Regional Energy Hub. This ambitious project aims to transform Tanga into a major regional center for petroleum storage, refining, logistics, trading, and distribution. It is designed to complement Uganda’s existing and planned oil and gas projects, such as the Hoima refinery, thereby enhancing energy security and expanding export opportunities across East and Central Africa.

Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, highlighted the MoU as a testament to regional collaboration and a step towards realizing the leaders’ vision of a united, prosperous Africa. She emphasized that the initiative goes beyond infrastructure, serving as a strategic driver for industrialization, job creation, and strengthening regional trade. Dr. Musenero reiterated Uganda’s commitment to maximizing the value derived from its petroleum resources through downstream industries rather than exporting raw commodities.

Further developments include progress on feasibility studies for a refined petroleum products pipeline and storage terminal, expected to conclude this year, and a proposed natural gas pipeline linking Uganda and Tanzania, nearing completion by October 2026. Additionally, plans for a 400kV electricity interconnector between the two nations are advancing, with Uganda securing $250 million in financing for its portion.

Tanzania’s Minister of Energy, Hon. Deo Ndejembi, described the Tanga hub as the next logical step following the East African Crude Oil Pipeline (EACOP), transforming the transported ‘molecules’ into ‘prosperity’. He projected that the hub could attract over $20 billion in investments, positioning East Africa as a significant player in the global energy market. Both ministers affirmed the strategic complementarity of the Tanga hub and Uganda’s Hoima refinery, underscoring a shared goal of regional energy integration and economic development.

This landmark agreement was signed at the State House in Dar es Salaam, following discussions between the two presidents on strengthening bilateral ties. The partnership signifies a major stride in cross-border infrastructure development and economic collaboration within the East African region.

Source: State House (Uganda)