energy 9 August 2026 Daily Monitor (Uganda)
Uganda and Tanzania Forge Regional Energy Hub in Tanga
Uganda and Tanzania have signed a significant agreement to develop a major energy hub at Tanzania's Port of Tanga. This initiative, aimed at creating an integrated energy corridor, could attract over $20 billion in investments, including a proposed oil refinery, and is set to reshape the petroleum landscape in East Africa. Source: https://www.monitor.co.ug/uganda/news/national/uganda-tanzania-eye-tanga-refinery-in-regional-energy-hub-push-5552198
Uganda and Tanzania are set to collaborate on a transformative energy project, establishing a new regional energy hub centered at the Port of Tanga in Tanzania. This ambitious partnership, formalized through a Memorandum of Understanding (MoU) between the Uganda National Oil Company (Unoc), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain EC, envisions a comprehensive energy corridor.
The initiative aims to integrate multi-product fuel pipelines, advanced oil and gas infrastructure, and storage terminals, with a key component being a proposed oil refinery. This development could potentially attract more than $20 billion in investments, significantly bolstering East Africa’s energy sector.
The project’s core objective is to transform Tanga into a major Sub-Saharan African hub for petroleum refining, storage, logistics, trading, and distribution. The proposed refinery is slated to process crude oil from both regional and international sources, complementing Uganda’s own upcoming Hoima refinery.
Officials from both nations emphasized that this collaboration is a strategic move to drive industrialization, enhance trade, and create employment opportunities. By focusing on downstream activities like refining, Uganda aims to maximize the value derived from its petroleum resources, moving beyond simple crude oil exports to foster skilled employment and support manufacturing.
This new partnership builds upon the ongoing East African Crude Oil Pipeline (Eacop) project and signifies a deepening of energy cooperation between the two neighboring countries. Feasibility and design studies for key components, including a refined petroleum products pipeline and storage terminal, are expected to conclude later this year, with natural gas pipeline studies following closely. The initiative also includes advancements in electricity interconnections, further strengthening regional energy trade.
This collaboration represents a significant step towards enhancing energy security and economic development across East Africa, positioning Tanga as a critical node in the region’s energy future.
Source: Daily Monitor (Uganda)