Dar es Salaam, Tanzania – President Yoweri Kaguta Museveni and his Tanzanian Counterpart H.E Dr. Samia Suluhu Hassan launched a new phase of Uganda–Tanzania energy cooperation following the signing of a landmark Memorandum of Understanding to advance regional petroleum infrastructure, industrialisation and cross-border trade.
President Museveni who arrived in Dar es Salaam for a two-day working visit was received by President Suluhu. The two leaders held bilateral discussions focused on strengthening cooperation and advancing shared interests between Uganda and Tanzania. The leaders also witnessed the signing of a Memorandum of Understanding (MoU) between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C. The agreement provided a framework for the joint development of the proposed Tanga Regional Energy Hub. The planned hub was envisaged as a strategic regional facility building on the East African Crude Oil Pipeline (EACOP), with the potential to position Tanga as a major centre for petroleum storage, refining, logistics, trading and distribution.
The initiative was expected to complement Uganda’s planned 60,000-barrel-per-day Hoima refinery while deepening regional energy cooperation, enhancing energy security and creating new opportunities for trade and investment across East and Central Africa.
Dr. Monica Musenero, Uganda’s Minister of Energy and Mineral Development described the partnership as a major step towards translating the two countries’ shared vision of regional integration into practical economic development. She said the projects would go beyond infrastructure development by creating employment, strengthening regional trade and supporting industrialisation. She emphasised Uganda’s commitment to maximising value from its petroleum resources through downstream industries, technology development and the creation of high-skilled jobs. Dr. Musenero also revealed that feasibility and Front-End Engineering Design studies for a proposed refined petroleum products pipeline and storage terminal are progressing and are expected to be completed later this year. Feasibility studies for a proposed natural gas pipeline linking Uganda and Tanzania are also at an advanced stage and are expected to conclude by October 2026. The Minister informed that Uganda has secured US$250 million in financing for its section of the planned Uganda–Tanzania 400kV electricity interconnector project which is expected to enhance electricity exchange between the two countries, strengthen the Eastern Africa Power Pool and expand regional electricity trade.
Hon. Deogratius John Ndejembi, Tanzania’s Minister of Energy described the agreement as a historic milestone in the countries’ growing energy partnership. He noted that while EACOP established the foundation for cooperation, the Tanga Regional Energy Hub would take the partnership further by creating additional value through storage, refining, logistics, trading and industrialisation. He stressed that Tanzania considers the Tanga hub and Uganda’s Hoima refinery complementary projects, rather than competing investments. He also highlighted the proposed bidirectional multi-product pipeline, which would enable refined petroleum products to move efficiently between the two countries according to market demand.
The agreement signals a broader commitment by Uganda and Tanzania to develop an integrated regional energy market capable of attracting investment, creating jobs, strengthening energy security and accelerating East Africa’s industrial transformation.
