Tanzania, Uganda Sign MoU for USD 20 Billion Tanga Energy Hub

Tanzania and Uganda signed a Memorandum of Understanding at State House on 6 August 2026 to develop Tanga as a Regional Energy Hub, a deal Tanzania’s Energy Minister said could attract investment exceeding USD 20 billion. The agreement, signed by the Uganda National Oil Company, the Tanzania Petroleum Development Corporation, and Vitol Bahrain E.C., covers petroleum storage, refining, logistics, and distribution infrastructure at the port of Tanga, building on the East African Crude Oil Pipeline.
Presidents Samia Suluhu Hassan and Yoweri Museveni witness the Tanga Regional Energy Hub MoU signing, State House Dar es Salaam

Tanzania and Uganda have signed a Memorandum of Understanding on proposals to develop Tanga as a Regional Energy Hub, in a deal Tanzania’s Minister for Energy said could attract investment exceeding USD 20 billion.

The agreement was signed at State House in Dar es Salaam on 6 August 2026, during an official visit by Ugandan President Yoweri Museveni hosted by President Samia Suluhu Hassan.

The Memorandum of Understanding was signed by the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and global energy trader Vitol Bahrain E.C.

Tanzania Investment Guide 2026 Free Edition

It provides for the development of petroleum storage, refining, logistics, trading, and distribution infrastructure at the port city of Tanga, building on the foundation established by the East African Crude Oil Pipeline (EACOP).

The proposed hub is expected to complement Uganda’s own 60,000-barrel-per-day Hoima refinery, improving fuel security and opening new export routes across East and Central Africa as Uganda prepares to start oil production before the end of 2026.

Vitol is already a partner in Uganda’s petroleum sector through a seven-year agreement with UNOC backed by financing of up to USD 2 billion for petroleum storage, terminals, pipelines, and related logistics, and its involvement in the Tanga hub extends that partnership into a wider regional network.

Studies for a proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and are expected to be concluded by October 2026.

Uganda has separately secured USD 250 million in World Bank financing for its section of a planned 400-kilovolt electricity interconnector with Tanzania, a line expected to expand electricity trade and strengthen the Eastern Africa Power Pool.

TanzaniaInvest Capital Markets Report Banner

Tanzania’s Minister for Energy, Deogratius Ndejembi, said the agreement built on the foundation established by EACOP and represented a shift towards refining, storage, logistics, and industrial development.

“EACOP transports molecules. The Tanga Regional Energy Hub transforms those molecules into prosperity,” Ndejembi said, adding that Uganda’s Hoima refinery would complement rather than compete with the Tanga development.

For his part, the Minister of Energy and Mineral Development of Uganda, Monica Musenero Masanza, described the signing as another step in the two countries’ strategy to use petroleum resources to support industrialisation rather than merely export raw commodities.

“Action speaks louder than words, and today we are privileged to witness a giant step towards joint development with our sister nation,” Musenero Masanza said.

Tanga Region

Tanga is a coastal region in northeastern Tanzania on the Indian Ocean, bordering Kenya, with a population of approximately 2.6 million people according to the 2022 census.

The region is home to the Port of Tanga, the country’s second-largest port, historically used for bulk cargo including coal and cement, and connected to Dar es Salaam and the Kenyan border by road, rail, and air.

Tanga has attracted a growing wave of energy infrastructure investment in recent years, including the Chongoleani Marine Terminal built for EACOP and the USD 100 million Tanga LPG Terminal launched in June 2025 to serve as a regional liquefied petroleum gas hub.

The East African Crude Oil Pipeline runs 1,443 kilometres from Hoima in western Uganda to Tanga and is designed to transport up to 230,000 barrels of oil per day, at a cost of roughly USD 5 billion.

Tanzania’s Minister for Energy said in June 2026 that EACOP construction had reached 86% completion, with the first crude oil shipment from the Chongoleani Marine Terminal now expected in January 2027.

Want to know more about Energy in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Energy, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Related Posts
Tanzania Julius Nyerere Hydropower Project (JNHPP)
Read More

Tanzania Electricity Surplus Hits 2,375 MW As Julius Nyerere Hydropower Project Is Officially Launched

The Julius Nyerere Hydropower Project's 2,115MW plant lifted Tanzania's installed generation capacity to 4,646MW against peak demand of 2,271MW, with a surplus of 2,375MW, after President Samia Suluhu Hassan's inauguration on 22 August 2026. The government has signed an agreement to export power to Zambia and reached a trading arrangement with Kenya, while a newly completed 400kV Chalinze-Dodoma transmission line lifted national peak demand by 150MW within three days of coming online.
Samia Suluhu Hassan Africa50 Forum Dar es Salaam 2026
Read More

Tanzania President Calls for Faster Infrastructure Delivery Via PPPs as Country Signs Five Agreements on Power Transmission, Gas and Health

Tanzania President Samia Suluhu Hassan called for faster infrastructure delivery through public-private partnerships (PPPs) as Tanzania signed five agreements at Africa50's Infra for Africa Forum, covering an electricity transmission PPP with TANESCO, natural gas supply to local industry with TPDC and TAQA Arabia, and expanded kidney dialysis care. Africa50 secured USD 70 million in new capital from British International Investment, the Italian Climate Fund and Proparco, the private sector financing arm of the French Development Agency group (AFD).
Tanzania Mini Small-Scale LNG Project
Read More

Tanzania Signs Agreements for First Small-Scale LNG Project To Extend Natural Gas Access to Arusha, Dodoma, Mwanza, and Zanzibar

The Tanzania Petroleum Development Corporation (TPDC), TAQA Arabia subsidiary Rosetta Energy Solutions, and Africa50 have signed agreements for a USD 100 million small-scale LNG project, targeting commercial operations by 2027. The project will extend gas distribution to Arusha, Dodoma, Mwanza, and Zanzibar, areas currently outside Tanzania's pipeline network, with TPDC seeking a stake exceeding 30% in the venture.
Tanzania Contract 100 MW Kishapu Solar Project Phase Two
Read More

Tanzania Signs TZS 204.4 Billion Contract for 100 MW Kishapu Solar Project Phase Two

Tanzania has signed a contract worth approximately TZS 204.4 billion with Sagemcom Energy & Telecom SAS and STEG International Services for the 100 MW second phase of the Kishapu Solar Power Project in Ngunga, Shinyanga Region, taking the full 150 MW project's cost to approximately TZS 323 billion. The contract follows completion of the project's 50 MW first phase, which cost TZS 118.6 billion and became Tanzania's first grid-connected utility-scale solar plant in March 2026.