Uganda, Tanzania seal deal to develop Tanga into regional energy hub

What the report says

Uganda and Tanzania have endorsed a memorandum of understanding to advance plans for a Tanga Regional Energy Hub, according to The Independent Uganda. The agreement was signed by the Uganda National Oil Company, Tanzania Petroleum Development Corporation and Vitol Bahrain E.C., and was backed by Presidents Yoweri Kaguta Museveni and Samia Suluhu Hassan during the leaders’ engagement in Dar es Salaam, Tanzania.

The proposed project is meant to expand regional energy cooperation beyond crude oil transport into refining, storage, logistics, petrochemicals and related infrastructure along Tanzania’s Indian Ocean coast. Officials quoted in the report said the initiative is intended to support industrialisation, local value addition and job creation, while also strengthening energy security and cross-border trade. The article said the plan builds on the East African Crude Oil Pipeline, which is already central to Uganda’s oil export strategy.

The Independent Uganda reported that government figures see the hub as a large investment opportunity, potentially drawing more than US$20 billion if fully developed. It also said the project is designed to complement Uganda’s planned Hoima oil refinery rather than replace it, with the refinery focused mainly on domestic needs and the Tanga hub serving broader East and Central African markets.

The report added that the deal sits within a longer history of Uganda-Tanzania energy cooperation and regional integration frameworks. It also noted that the proposal is likely to face scrutiny from environmental and climate groups because of wider concerns around fossil-fuel infrastructure, emissions, biodiversity and community impacts.