President Yoweri Kaguta Museveni and Tanzanian President Dr. Samia Suluhu Hassan have launched a cross-border energy partnership to build petroleum infrastructure and spur regional trade across East Africa.
The two leaders witnessed the signing of a Memorandum of Understanding (MoU) at State House in Dar es Salaam on Thursday.
The deal brings together 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.
Building on the foundation of the East African Crude Oil Pipeline (EACOP), the project aims to transform the port city of Tanga into a center for oil storage, refining, trading, and logistics.
Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, described the deal as a critical milestone for African industrialization and economic integration.
“For a long time, Your Excellencies have advocated for a united Africa driven by common interests and shared trade,” Dr. Musenero said. “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.”
Dr. Musenero emphasized that the agreement focuses on high-value domestic processing rather than raw material exports.
“These are not merely infrastructure projects,” Dr. Musenero added. “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 assured stakeholders that the Tanga hub will complement Uganda’s planned 60,000-barrel-per-day refinery in Hoima. Furthermore, feasibility studies for a refined petroleum products pipeline and a natural gas pipeline connecting the two nations will wrap up later this year.
Tanzania’s Minister of Energy, Hon. Deo Ndejembi, stated that the partnership accelerates economic transformation across the Great Lakes region.
“The story we celebrate today did not begin in 2026,” Hon. Ndejembi said. “It began several years ago when Tanzania and Uganda made the courageous decision to deepen cooperation in the petroleum sector.”
Hon. Ndejembi highlighted the economic potential of the new infrastructure development, which could attract over $20 billion in private and public capital.
“EACOP transports molecules,” Hon. Ndejembi noted. “The Tanga Regional Energy Hub transforms those molecules into prosperity.”
He confirmed that Tanzania fully supports Uganda’s sovereign goal to develop the Hoima refinery alongside the coastal facility. A proposed bidirectional multi-product pipeline will allow refined petroleum to flow flexibly based on market demand.
Beyond oil and gas, the two nations are advancing the 400kV Uganda-Tanzania power interconnection project. Uganda finalized $250 million in World Bank funding in June to build its section, paving the way for expanded power trading under the Eastern Africa Power Pool.
