Museveni and Samia launch new Uganda-Tanzania energy partnership

Presidents Yoweri Museveni of Uganda and Samia Suluhu Hassan of Tanzania have launched a new phase of energy cooperation between the two nations. The leaders met at State House in Dar es Salaam to witness the signing of a Memorandum of Understanding (MoU) aimed at accelerating petroleum infrastructure and cross-border trade.

The agreement involves the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C. Together, these entities will develop the Tanga Regional Energy Hub. This project builds on the existing East African Crude Oil Pipeline (EACOP) and is designed to turn Tanga into a center for petroleum trading, logistics, refining, and storage.

Uganda's Minister of Energy and Mineral Development, Dr. Monica Musenero, stated that the partnership focuses on industrialisation and creating high-skilled jobs in sectors such as engineering and management. She noted that feasibility and front-end engineering design studies for a storage terminal and refined petroleum products pipeline are expected to finish later this year. Additionally, studies for a natural gas pipeline connecting the two countries are projected for completion by October 2026.

The energy cooperation also extends to electricity. Uganda secured US$250 million in June for its portion of the Uganda-Tanzania 400kV electricity interconnector, following negotiations with the World Bank in March. This transmission line is intended to boost electricity exchange and support the Eastern Africa Power Pool.

Tanzania's Minister of Energy, Hon. Deo Ndejembi, noted that the Tanga Regional Energy Hub could attract investments surpassing US$20 billion. He emphasized that while EACOP focuses on transport, the new hub is designed to create value through industrial processes. The project is intended to complement Uganda's 60,000-barrel-per-day Hoima refinery rather than compete with it.