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

Kampala, August 7, 2026 - The agreement, signed on Thursday by the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C., provides the framework for the proposed Tanga Regional Energy Hub. The project will integrate petroleum refining, storage, logistics, petrochemicals and cross-border energy infrastructure along Tanzania’s Indian Ocean coast.

Building on the East African Crude Oil Pipeline (EACOP), government officials estimate the initiative could attract investments exceeding US$20 billion, making it one of Sub-Saharan Africa’s largest integrated energy developments if fully implemented. The project marks a strategic evolution of East Africa’s petroleum sector, shifting beyond crude oil transportation towards regional industrial value chains capable of creating skilled jobs, strengthening energy security and increasing domestic value addition.

The Tanga Regional Energy Hub transforms those molecules into prosperity,” Tanzania’s Minister for Energy, Deo Ndejembi, said, describing the project’s broader industrial vision. Uganda’s Minister of Energy and Mineral Development, Dr Monica Musenero Masanza, said the initiative aligns with Africa’s long-standing ambition to industrialise its natural resources instead of exporting raw commodities.

She said East Africa must move beyond exporting raw materials and instead capture value locally by building a knowledge-based economy supported by high-skilled employment in engineering, operations, maintenance and technical analysis. Her remarks resonate with the aspirations of the African Union’s Agenda 2063, which prioritises industrialisation, regional value chains and value addition to Africa’s natural resources as key drivers of sustainable economic transformation.