Uganda and Tanzania have launched a new phase of their energy partnership, signing a landmark agreement to develop the Tanga Regional Energy Hub, a multi-billion-dollar project expected to reshape petroleum trade, refining, storage and distribution across East and Central Africa.

Presidents Yoweri Kaguta Museveni and Dr. Samia Suluhu Hassan on Wednesday, August 65th, 2026, witnessed the signing of a Memorandum of Understanding (MoU) between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C. during Museveni’s two-day working visit to Tanzania.

The agreement marks the next major stage of cooperation between the two countries after the East African Crude Oil Pipeline (EACOP), shifting the partnership from transporting crude oil to developing regional downstream petroleum infrastructure and industrial value chains.

The proposed Tanga Regional Energy Hub will serve as a centre for petroleum storage, refining, logistics, trading and distribution, while complementing Uganda’s planned 60,000-barrel-per-day Hoima refinery. It is also expected to strengthen regional energy security, expand fuel exports and boost cross-border trade throughout East and Central Africa.

Tanzania’s Minister of Energy, Deo Ndejembi, described the agreement as the beginning of a new era in regional energy integration, saying the partnership builds on the foundation laid by EACOP.

“The story we celebrate today did not begin in 2026. It began several years ago when Tanzania and Uganda made the courageous decision to deepen cooperation in the petroleum sector,” he said.

He said the proposed energy hub could attract investments exceeding US$20 billion, making it one of the largest integrated energy infrastructure developments in Sub-Saharan Africa.

“As EACOP approaches completion, Tanzania and Uganda are not asking what comes next. Instead, we are answering that question together. EACOP transports molecules. The Tanga Regional Energy Hub transforms those molecules into prosperity,” Ndejembi noted.

Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, said the agreement reflects the long-standing vision of Presidents Museveni and Samia to use regional integration as a driver of economic transformation.

“For a long time, Your Excellencies have advocated for a united Africa driven by common interests and shared trade. Today we are witnessing a giant step towards joint development with our sister nation,” she said.

Dr. Musenero noted that the partnership extends beyond infrastructure, describing it as a catalyst for industrialisation, job creation and regional competitiveness.

“These are not merely infrastructure projects. 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 added.

She reaffirmed Uganda’s commitment to maximising value from its petroleum resources through refining and downstream industries rather than exporting crude oil.

“We need to extract greater value by developing secondary and tertiary industries, building the knowledge economy and creating high-skilled jobs in engineering, operations, maintenance, laboratory analysis and management,” Musenero said.

Dr. Musenero revealed that feasibility and front-end engineering design studies for the proposed refined petroleum products pipeline and storage terminal are progressing and are expected to be completed later this year.

She also said feasibility studies for a proposed Uganda-Tanzania natural gas pipeline are in advanced stages and are expected to conclude by October 2026.

Beyond petroleum, she highlighted progress on the planned Uganda-Tanzania 400kV electricity interconnector, noting that Uganda secured US$250 million in World Bank financing in June for its section of the transmission line after concluding negotiations earlier this year.

According to Dr. Musenero, the project will increase electricity trade between the two countries, strengthen the Eastern Africa Power Pool and open access to electricity markets in Southern Africa.

She stressed that Uganda’s Hoima refinery and the Tanga Regional Energy Hub are complementary projects designed to strengthen regional energy security rather than compete with one another.

“The hub is complementary. Together, these projects will enable East Africa to retain more value from its petroleum resources,” Dr. Musenero stated.

Ndejembi echoed the same position, saying Uganda’s refinery aligns with Tanzania’s vision for regional industrialisation.

“Uganda’s decision to develop the Hoima refinery reflects its sovereign objective of maximising value from its petroleum resources through domestic refining and industrial development. Tanzania fully supports that ambition,” he said.

He added that a proposed bidirectional multi-product pipeline between the two countries will allow refined petroleum products to move in either direction depending on market demand, expanding export opportunities while improving regional energy security.

President Museveni, who arrived in Dar es Salaam on Tuesday for a two-day working visit, held bilateral talks with President Samia at State House before the signing ceremony. The Tanzanian leader later hosted him to a state luncheon in honour of the visit.

The latest agreement signals a strategic shift in Uganda-Tanzania energy cooperation, from building export infrastructure for crude oil to jointly developing integrated energy and industrial assets expected to drive investment, manufacturing and trade across the region.