MARKET NEWS
Uganda-Tanzania Tanga Regional Energy Hub Agreement
Uganda and Tanzania have strengthened their strategic energy partnership following the signing of a landmark agreement to jointly develop the Tanga Regional Energy Hub, a major infrastructure project expected to enhance energy security, promote regional trade and accelerate industrialization across East Africa.
The project is expected to transform Tanga into a regional center for petroleum refining, storage, logistics, trading and distribution. It builds on the progress of the East African Crude Oil Pipeline (EACOP) and is designed to strengthen East Africa’s position as a competitive energy and petroleum trading hub.
Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero Masanza, described the agreement as another milestone in the longstanding cooperation between Uganda and Tanzania.
She said the partnership reflects the two countries’ commitment to using strategic energy investments to drive industrialization, create jobs and stimulate economic growth.
Dr. Musenero noted that the Tanga Regional Energy Hub, together with Uganda’s planned 60,000-barrel-per-day Hoima Refinery, will strengthen regional energy security while promoting value addition through petrochemicals, manufacturing, bitumen production and other downstream industries. The project will maximize local content participation, create skilled jobs and strengthen regional supply chains that will benefit businesses and communities across East Africa.
The minister also highlighted progress on other cross-border energy projects aimed at deepening cooperation between Uganda and Tanzania.
She revealed that feasibility studies for the proposed Bi-Directional Refined Petroleum Products Pipeline and the Tanga Storage Terminal are nearing completion.
She added that studies for the proposed Uganda-Tanzania Natural Gas Pipeline are expected to be concluded by October 2026. The pipeline is expected to provide cleaner energy for domestic, commercial and industrial users while supporting Uganda’s mineral processing and industrialization agenda.
Dr. Musenero further announced that Uganda has secured World Bank financing for its section of the planned Uganda-Tanzania 400-kilovolt Electricity Interconnector.
The project is expected to boost cross-border electricity trade, strengthen the Eastern Africa Power Pool and create opportunities for future electricity exchange with the Southern African Power Pool.
Providing an update on EACOP, Dr. Musenero said the multi-billion-dollar pipeline project has reached about 92 percent completion and entered the commissioning phase, with Uganda’s first commercial oil production expected before the end of 2026.
She said the project has already created thousands of jobs while building technical capacity needed to support future energy and infrastructure developments.
Tanzania’s Minister of Energy, Deo Ndejembi, described the Tanga Regional Energy Hub agreement as the next phase of cooperation following the development of EACOP.
He said the hub will increase value addition through petroleum refining, storage, logistics and trading while attracting investment, creating employment opportunities and improving energy security in the region.
Ndejembi said Tanzania’s Tanga Energy Hub and Uganda’s Hoima Refinery are complementary investments that will expand export opportunities, improve fuel supply reliability and position East Africa as a competitive energy destination.
President Museveni’s visit concluded with a state luncheon hosted by President Samia Suluhu Hassan, underscoring the strong diplomatic and economic ties between Uganda and Tanzania.
The agreements signed during the visit reaffirm the two countries’ shared commitment to using strategic energy infrastructure to deepen regional integration, facilitate trade, improve energy access and support sustainable economic transformation across East Africa.
The agreement was witnessed by President Yoweri Kaguta Museveni and Tanzanian President Dr. Samia Suluhu Hassan during President Museveni’s two-day working visit to Tanzania, highlighting the growing cooperation between the two neighboring countries in the energy sector.
At the center of the partnership is a Memorandum of Understanding (MoU) signed between the Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain to develop the Tanga Regional Energy Hub.
Key Investor & Energy Sector Insights
1. East Africa Is Becoming an Integrated Energy Market
The agreement signals a shift from country-specific energy projects to a regional energy ecosystem. With EACOP, the Hoima Refinery, Tanga Hub, storage terminals and power interconnectors, investors can expect stronger regional demand, better infrastructure, and improved market access.
2. Significant Opportunities Across the Energy Value Chain
Investment potential is no longer limited to upstream oil production. Opportunities are emerging in refining, fuel storage, logistics, petrochemicals, transportation, engineering services and energy trading.
3. Reduced Supply Risks and Improved Energy Security
The combination of refining capacity, storage infrastructure and cross-border pipelines is expected to reduce dependence on imported refined products and improve fuel availability, creating a more stable environment for businesses and industrial growth.
4. Strong Government Backing Lowers Long-Term Project Risk
The involvement of Uganda, Tanzania, World Bank financing, UNOC, TPDC and international partners such as Vitol demonstrates strong institutional support. For investors, this increases confidence that key infrastructure projects will be implemented and sustained over the long term.
Disclaimer: This newsletter is for information purposes only and does not constitute investment advice. Past performance does not guarantee future results
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