Uganda, Tanzania Agree To A Regional Energy Hub

President Yoweri Kaguta Museveni and his Tanzanian counterpart Samia Suluhu Hassan have witnessed the signing of a Memorandum of Understanding (MoU) aimed at accelerating regional petroleum infrastructure, industrialisation and cross-border trade. 

Museveni, who arrived in Dar es Salaam yesterday for a two-day working visit, held discussions with Suluhu on the strengthening of bilateral cooperation. 

The two leaders later witnessed the signing of an MoU between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C. to jointly develop the Tanga Regional Energy Hub.

The partnership builds on the East African Crude Oil Pipeline (EACOP) and is expected to transform Tanga into a regional hub for petroleum storage, refining, logistics, trading and distribution. 

It will also complement Uganda’s oil and gas projects, including the Hoima refinery, while enhancing energy security, expanding export opportunities and strengthening trade across East and Central Africa.

Speaking during the signing ceremony, Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, described the agreement as a powerful demonstration of regional cooperation and a reflection of the long-held vision of the two Presidents to build a united and prosperous Africa.

“For a long time, you have advocated for a united Africa driven by common interests and shared trade. While we often speak about these aspirations, action speaks louder than words, and today we are privileged to witness a giant step towards joint development with our sister nation,” Musenero said.

She welcomed Vitol Bahrain into the partnership, saying collaboration between the two governments and the private sector would accelerate regional economic transformation. 

Musenero said the projects under the partnership go beyond infrastructure development and are strategic instruments for industrialisation.

“These are not merely infrastructure projects. They are strategic investments that will create jobs for our young people, deepen regional trade and strengthen the logistics systems that support our economies,” she said. 

She stressed that Uganda remains committed to maximising value from its petroleum resources through downstream industries rather than exporting raw commodities.

“We must ensure that we are not simply trading these resources as commodities. We need to extract greater value by developing secondary and tertiary industries, building the knowledge economy and creating high-skilled jobs in engineering, operations, maintenance, laboratory analysis and management,” she added. 

Musenero revealed that feasibility and front-end engineering design studies for the proposed refined petroleum products pipeline and storage terminal are progressing well and are expected to be completed later this year. 

She also disclosed that feasibility studies for the proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and are expected to be concluded by October 2026. 

Musenero highlighted progress on the planned Uganda–Tanzania 400kV electricity interconnector, noting that Uganda concluded negotiations with the World Bank in March before securing US$250 million in financing in June for its section of the project. 

According to Musenero, the transmission line will increase electricity exchange between the two countries, strengthen the Eastern Africa Power Pool and create new opportunities for electricity trade with Southern Africa. 

She reaffirmed that Uganda’s planned 60,000-barrel-per-day Hoima refinery remains central to the country’s industrialisation agenda, emphasising that it complements rather than competes with the Tanga Regional Energy Hub.

“The hub is complementary. Together, these projects will strengthen regional energy security while enabling East Africa to retain more value from its petroleum resources,” she said.

She noted that the successful implementation of EACOP has demonstrated Uganda and Tanzania’s ability to deliver complex cross-border projects, boosting investor confidence and paving the way for future regional investments. 

Tanzania’s Minister of Energy, Deo Ndejembi, described the agreement as another historic milestone in the growing energy partnership between the two countries, saying it marks the beginning of a new era of regional energy integration.

“The story we celebrate today did not begin in 2026. It began several years ago when Tanzania and Uganda made the courageous decision to deepen cooperation in the petroleum sector,” Ndejembi said. 

He noted that while EACOP laid the foundation for regional collaboration, the Tanga Regional Energy Hub represents the next phase by creating value through refining, petroleum storage, logistics, trading and industrialisation.

“As EACOP approaches completion, Tanzania and Uganda are not asking what comes next. Instead, we are answering that question together,” he said.