Uganda, Tanzania Plan Tanga Oil Refinery

Uganda and Tanzania have endorsed plans to jointly develop an oil refinery and energy hub in Tanzania’s port city of Tanga, in a move aimed at expanding regional energy infrastructure.

Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan witnessed the signing of a Memorandum of Understanding on Thursday between the Uganda National Oil Company, Tanzania Petroleum Development Corporation and Vitol Bahrain Exempt Company.

The agreement provides a framework for developing the proposed Tanga Regional Energy Hub on Tanzania’s Indian Ocean coast. Project proponents estimate that the wider development could attract more than $20 billion in investment if fully implemented.

The project is expected to build on the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which connects Uganda’s oilfields to Tanga and is nearing completion. EACOP is expected to transport about 230,000 barrels of crude oil per day to the Tanzanian coast.

The proposed hub would combine oil refining, storage and transportation, with officials saying it could create jobs in engineering, operations, maintenance and technical services. Uganda’s Energy Minister Monica Musenero said the project would support efforts to process African natural resources locally rather than export raw materials.

The development would complement Uganda’s planned 60,000-barrel-per-day Hoima Oil Refinery, expected to begin operations between 2029 and 2030. Uganda and Tanzania are also considering a cross-border natural gas pipeline, with studies expected to be completed by October 2026.

SOURCE: TRT Afrika