Tanzania and Uganda Advance $20 Billion Tanga Energy Hub to Transform East Africa’s Oil Industry
Tanzania and Uganda are advancing plans to develop a regional energy hub at the Port of Tanga, with the proposed project expected to attract more than $20 billion in investment and reshape East Africa’s petroleum industry.
The two countries have signed a non-binding agreement with Vitol Bahrain, a subsidiary of global energy trader Vitol, to develop an integrated energy hub covering oil refining, storage, logistics, trading, distribution and related infrastructure.
The initiative builds on the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which will transport crude from Uganda’s oil fields to Tanga on Tanzania’s Indian Ocean coast.
The new hub is intended to move the partnership beyond crude transportation by creating additional refining and downstream opportunities.
Plans include a proposed refinery, petroleum storage facilities, a marine jetty and a pipeline for transporting refined petroleum products to Uganda.
The infrastructure could also support wider regional fuel distribution and strengthen East Africa’s energy security.
For Uganda, the project comes as the country prepares to begin commercial oil production.
Access to Tanga’s infrastructure would provide an important outlet for its crude while improving access to refined petroleum products.
For Tanzania, transforming Tanga into a major energy and logistics centre could generate new investment, create jobs and increase the country’s role in regional petroleum trade.
The proposed development could also support industrialisation, local value addition and regional trade by establishing infrastructure capable of serving multiple energy markets across East Africa.
However, the $20 billion figure represents the potential investment associated with the broader development and should not be interpreted as funds already committed.
The agreement is a framework for pursuing the proposed projects, with further financing, commercial and investment decisions still required.
If successfully implemented, the Tanga Regional Energy Hub could become a major component of East Africa’s emerging oil and gas infrastructure, linking Uganda’s upstream resources with Tanzania’s coastal logistics network and regional downstream markets.