Tanzania, Uganda Sign Deal to Build Major Oil Refinery and Regional Energy Hub in Tanga

Tanzania and Uganda have taken another major step in expanding their energy partnership after President Samia Suluhu Hassan and Ugandan President Yoweri Museveni witnessed the signing of a Memorandum of Understanding (MoU) to develop an oil refinery and regional energy hub in the northern Tanzanian city of Tanga.

The agreement, signed at State House in Dar es Salaam, brings together the Tanzania Petroleum Development Corporation (TPDC), the Uganda National Oil Company (UNOC) and VTTO Bahrain, paving the way for technical studies and investment preparations for the ambitious project.

Speaking during the signing ceremony, Tanzania’s Minister of Energy Deogratias Ndejembi described the agreement as a significant milestone in strengthening energy cooperation between Tanzania and Uganda.

According to Ndejembi, the project will include an oil refinery, petroleum storage facilities, transportation infrastructure and a bi-directional petroleum products pipeline capable of supplying both Tanzania and Uganda.

He said the development is expected to transform Tanga into a key regional distribution centre for petroleum products, serving not only East African countries but also the wider African market.

“The signing of today’s agreement is not just another memorandum. It is another foundation for economic transformation in East Africa,” Ndejembi said.

The proposed energy hub builds on the partnership already established through the East African Crude Oil Pipeline (EACOP), the approximately US$6 billion project designed to transport crude oil from Uganda’s oil fields to the Port of Tanga for export.

Unlike EACOP, which focuses on transporting crude oil, the new Tanga Energy Hub is intended to add value to the resource through refining, storage, distribution and trade in petroleum products.

Ndejembi said the project has the potential to attract more than US$20 billion in investment, create thousands of jobs, stimulate industrial growth and strengthen energy security across East Africa, positioning Tanzania as one of the region’s most important energy and logistics centres.