Oil & Gas

Tanzania and Uganda have signed a Memorandum of Understanding to develop Tanga into a Regional Energy Hub, in a project that Tanzania’s Energy Minister said could attract more than USD 20 billion in investment. The agreement was signed at State House in Dar es Salaam on 6 August 2026 by UNOC, TPDC, and Vitol Bahrain E.C.

The project will focus on petroleum storage, refining, logistics, trading, and distribution at the Port of Tanga, building on the East African Crude Oil Pipeline (EACOP). The hub is expected to strengthen fuel security, support regional trade, and create new export opportunities across East and Central Africa.

The agreement forms part of wider energy cooperation between Tanzania and Uganda, including plans for a natural gas pipeline and a 400-kilovolt electricity interconnector. Uganda is also preparing to begin oil production before the end of 2026, with the Tanga hub expected to complement its planned Hoima refinery.

Tanga is already becoming a major regional energy centre, with investments including the Chongoleani Marine Terminal and a USD 100 million LPG terminal. EACOP, which runs 1,443 kilometres from Hoima to Tanga, is designed to transport up to 230,000 barrels of crude oil per day, with the first shipment expected in January 2027.