Tanzania And Uganda Sign MoU On Crude Oil Export Pipeline

Uganda-Tanzania oil pipeline completion agreement 2020

Uganda’s Ministry of Energy and Mineral Development has signed a Memorandum of Understanding (MoU) with Total Uganda, the Tanzania’s Government, and the Tanzania Petroleum Development Corporation (TPDC) for carrying out a feasibility study to establish a pipeline to export Ugandan oil via the East African Coast.

The MoU on crude oil pipeline development principles is meant to create the framework under which the route from Hoima in Uganda’s western region to Tanga’s port in Tanzania’s coastal northern region, would be feasible for the establishment of a crude export pipeline.

Uganda’s Permanent Secretary of Energy and Mineral Development, Dr. Fred Kabagambe-Kaliisa, explained that the MoU not only guidelines the development of the framework, but also enable the parties concerned to constantly enhance it in order to achieve the lowest unit transportation cost for Uganda’s oil.

Tanzania Investment Guide 2026 Free Edition

Uganda is yet to decide among different routes either by Kenya, Kenya-Tanzania or Tanzania, the country’s crude oil at the least cost to the East African Coast, to add more value to the exports, Dr. Kabagambe-Kaliisa added.

TPDC Managing Director James Mataragio, explained that Tanzania’s experience on the development and management of pipelines ensures the Ugandan Government with the expertise needed to develop such project.

The evaluation of the Hoima-Tanga crude oil pipeline is a result of the security concerns raised by the originally selected route through Lamu in Kenya’s coastal region.

Recent attacks by Islamist militants from Somalia to Kenya, jeopardized the construction of the USD 4.5 billion crude oil pipeline at a total length of 1,500 km.

According to Bloomberg, the new route through Tanzania does not count yet with a total length but Uganda has also agreed to develop the reverse-flow pipeline which represents an option to Tanzania for transporting its imported refined petroleum that currently totals USD 2.94 billion and represents 25.47% of the country’s total exports.

TanzaniaInvest Capital Markets Report Banner

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
Read More

EU–Tanzania Roadshow Continues in Italy With Rice, Cashew, Coffee and Renewable Energy Investment Pitches in Cesena

At the Cesena stop of the EU–Tanzania roadshow, Tanzanian agencies presented investment opportunities in rice, cashew and coffee processing, renewable energy, power transmission and digital infrastructure. Italy’s Ministry of Foreign Affairs cited USD 8.6 billion in foreign investment registered in Tanzania in the last year, up 56%, while EU and Italian institutions outlined grants, guarantees, export credit and blended finance.
Songo Songo Offshore Gas
Read More

Orca Warns Its Operation of Tanzania’s Songo Songo Gas Field May End on 10 October as Sale Awaits Approvals

Orca Energy Group has warned that its subsidiary may cease operating Tanzania’s Songo Songo gas field, which supplies natural gas to power plants and industries, when its licence expires on 10 October 2026. The proposed sale to Taifa Gas and Amber Energy Investment remains subject to approvals, and PanAfrican Energy Tanzania has recommended preparations for a possible transfer of operating responsibilities.
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.
Presidents Samia Suluhu Hassan and Yoweri Museveni witness the Tanga Regional Energy Hub MoU signing, State House Dar es Salaam
Read More

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.