Tanzania and Uganda have signed a landmark agreement with global energy trader Vitol Bahrain E.C. to develop a major petroleum infrastructure project in the coastal city of Tanga, Tanzania.
The Tanga Regional Energy Hub, valued at more than $20 billion, will include fuel storage facilities, refining capacity, petroleum trading operations, and regional distribution networks aimed at strengthening East Africa’s energy security.
The memorandum of understanding (MoU) was signed on August 6, 2026, by the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain. The signing was witnessed by Tanzanian President Samia Suluhu Hassan and Ugandan President Yoweri Kaguta Museveni.
Strategic Location
The project will be developed in Tanga, a location of growing importance in East Africa’s energy sector. The city is the coastal terminus of the East African Crude Oil Pipeline (EACOP), which will transport crude oil from Uganda’s Lake Albert oil fields to the Indian Ocean.
The new hub is expected to complement EACOP by providing infrastructure for petroleum storage, refining, trading, and distribution across the region.
Boost for Regional Fuel Supply
The energy hub is designed to reduce East Africa’s reliance on imported refined petroleum products by creating a regional supply and trading centre.
The facility is expected to serve markets including Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo, helping lower fuel transportation costs and improve supply reliability.
Complementing Uganda’s Refinery Plans
The Tanga project will work alongside Uganda’s planned 60,000-barrel-per-day Hoima Refinery, rather than compete with it.
While the Hoima refinery is intended to support domestic crude oil processing, the Tanga hub will focus on regional logistics, storage, and international petroleum trade.
Economic Impact
Officials say the investment will create jobs, expand industrial activity, strengthen port operations, and position Tanzania as a key energy gateway for East Africa.
The partnership between Uganda, Tanzania, and Vitol marks a significant step toward building an integrated regional energy network linking oil production, refining, transportation, and markets.
With billions of dollars in investment behind it, the Tanga Regional Energy Hub could become one of East Africa’s most important energy infrastructure projects.
