Dar es salaam: President Yoweri Kaguta Museveni and Tanzanian President Dr. Samia Suluhu Hassan have launched a new chapter in Uganda-Tanzania energy cooperation following the signing of a landmark Memorandum of Understanding (MoU) aimed at accelerating regional petroleum infrastructure, industrialisation, and cross-border trade.
According to African Press Organization, President Museveni, who arrived in Dar es Salaam yesterday for a two-day working visit, was today received by President Samia at State House. The two Heads of State held a tªte- -tªte to discuss matters of mutual interest and ways of strengthening bilateral cooperation. They later witnessed the signing of an MoU between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C. to jointly develop the Tanga Regional Energy Hub.
The partnership builds on the East African Crude Oil Pipeline (EACOP) and is expected to transform Tanga into a regional hub for petroleum storage, refining, logistics, trading, and distribution. It will also complement Uganda's oil and gas projects, including the Hoima refinery, while enhancing energy security, expanding export opportunities, and strengthening trade across East and Central Africa.
Speaking during the signing ceremony, Uganda's Minister of Energy and Mineral Development, Dr. Monica Musenero, described the agreement as a powerful demonstration of regional cooperation and a reflection of the long-held vision of the two Presidents to build a united and prosperous Africa. Dr. Musenero said collaboration between the two governments and the private sector would accelerate regional economic transformation. She emphasized that the projects under the partnership are strategic instruments for industrialisation, creating jobs, deepening regional trade, and strengthening logistics systems.
Dr. Musenero stressed that Uganda remains committed to maximizing value from its petroleum resources through downstream industries rather than exporting raw commodities. She revealed that feasibility and front-end engineering design studies for the proposed refined petroleum products pipeline and storage terminal are progressing well. She also disclosed that feasibility studies for the proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and expected to be concluded by October 2026.
Beyond petroleum, she highlighted progress on the planned Uganda-Tanzania 400kV electricity interconnector. According to Dr. Musenero, the transmission line will increase electricity exchange between the two countries, strengthen the Eastern Africa Power Pool, and create new opportunities for electricity trade with Southern Africa. The Hoima refinery remains central to Uganda's industrialisation agenda, complementing rather than competing with the Tanga Regional Energy Hub.
Tanzania's Minister of Energy, Hon. Deo Ndejembi, described the agreement as another historic milestone in the growing energy partnership between the two countries. He noted that while EACOP laid the foundation for regional collaboration, the Tanga Regional Energy Hub represents the next phase by creating value through refining, petroleum storage, logistics, trading, and industrialization.
Hon. Ndejembi highlighted the potential of the proposed hub to attract investments exceeding US$20 billion, making it one of the largest integrated energy infrastructure developments in Sub-Saharan Africa. He stressed that Uganda's planned Hoima refinery and the Tanga Regional Energy Hub are strategically complementary, supporting Uganda's sovereign objective of maximising value from its petroleum resources.
He added that the proposed bidirectional multi-product pipeline linking Uganda and Tanzania will allow refined petroleum products to move efficiently in either direction according to market demand, opening wider export opportunities for Uganda while strengthening energy security across East Africa. The agreement marks the beginning of a broader journey towards building a competitive regional energy market.
President Samia later hosted President Museveni at a state luncheon in honor of his visit.