President Yoweri Kaguta Museven and his Tanzanian counterpart Dr Samia Suluhu Hassan, have witnessed the signing of an MoU between Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C. to develop the Tanga Regional Energy Hub.
During the signing ceremony took place at State House Dar es Salaam in Tanzania, where President Museveni noted that the partnership builds on the success of East Africa Crude Oil Pipeline and will strengthen regional energy, infrastructure, security, industrialisation and border trade.
The Tanga Regional Energy Hub, together with Uganda’s Hoima Refinery, will ensure that the petroleum resources create more value through refining, storage, logistics and more.
President Museveni, who arrived in Dar es Salaam yesterday evening was today morning received by President Samia Suluhu at State House Dar es Salaam, where the two Heads of State discussed matters of mutual interest and ways of strengthening bilateral cooperation.
The partnership builds on the East African Crude Oil Pipeline (EACOP) and is expected to transform Tanga into a regional hub for petroleum storage, refining, logistics, trading and distribution and it will also complement Uganda’s oil and gas projects, including the Hoima refinery, while enhancing energy security, expanding export opportunities and strengthening trade across East and Central Africa.
Speaking during the signing ceremony, the Minister of Energy and Mineral Development, Dr Monica Musenero, described the agreement as a powerful demonstration of regional cooperation and a reflection of the long-held vision of the two Presidents to build a united and prosperous Africa.
Minister Musenero welcomed Vitol Bahrain into the partnership, saying collaboration between the two governments and the private sector would accelerate regional economic transformation and said the projects under the partnership go beyond infrastructure development and are strategic instruments for industrialisation.
“These are not merely infrastructure projects. They are strategic investments that will create jobs for our young people, deepen regional trade and strengthen the logistics systems that support our economies,” Minister Musenero said.
She stressed that Uganda remains committed to maximising value from its petroleum resources through downstream industries rather than exporting raw commodities.
Dr Musenero revealed that feasibility and front-end engineering design studies for the proposed refined petroleum products pipeline and storage terminal are progressing well and are expected to be completed later this year and also disclosed that feasibility studies for the proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and are expected to be concluded by October 2026.
Beyond petroleum, she highlighted progress on the planned Uganda–Tanzania 400kV electricity interconnector, noting that Uganda concluded negotiations with the World Bank in March before securing US$250 million in financing in June for its section of the project.
Dr Musenero said that the transmission line will increase electricity exchange between the two countries, strengthen the Eastern Africa Power Pool and create new opportunities for electricity trade with Southern Africa.
She reaffirmed that Uganda’s planned 60,000-barrel-per-day Hoima refinery remains central to the country’s industrialisation agenda, emphasising that it complements rather than competes with the Tanga Regional Energy Hub.
Dr Musenero added that the successful implementation of East Africa Crude Oil Pipeline has demonstrated Uganda’s and Tanzania’s ability to deliver complex cross-border projects, boosting investor confidence and paving the way for future regional investments.
Tanzania’s Minister of Energy, Hon Deo Ndejembi, described the agreement as another historic milestone in the growing energy partnership between the two countries, saying it marks the beginning of a new era of regional energy integration.
He noted that while East Africa Crude Oil Pipeline laid the foundation for regional collaboration, the Tanga Regional Energy Hub represents the next phase by creating value through refining, petroleum storage, logistics, trading and industrialisation.
He said the proposed Tanga Hub has the potential to attract investments exceeding US 20 billion dollars making it one of the largest integrated energy infrastructure developments ever undertaken in Sub-Saharan Africa.
He added that the proposed bidirectional multi-product pipeline linking Uganda and Tanzania will allow refined petroleum products to move efficiently in either direction according to market demand, opening wider export opportunities for Uganda while strengthening energy security across East Africa.
Minister Ndejembi said the agreement marks the beginning of a broader journey towards building a competitive regional energy market capable of creating jobs, attracting investment and positioning East Africa as a global energy player.
