Uganda and Tanzania have entered a new phase of energy cooperation after President Yoweri Kaguta Museveni and Tanzania’s President Samia Suluhu Hassan witnessed the signing of a landmark Memorandum of Understanding (MoU) to strengthen regional energy infrastructure and economic integration.

President Museveni, who was on a two-day working visit to Tanzania, was received by President Samia at State House in Dar es Salaam, where the two leaders held bilateral discussions focused on strengthening the long-standing relationship between the two countries.

The agreement was signed between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C. for the joint development of the Tanga Regional Energy Hub.

The initiative builds on cooperation established through the East African Crude Oil Pipeline (EACOP) and aims to position Tanga as a regional centre for petroleum storage, logistics, trading, and distribution.

The Tanga Energy Hub is expected to support Uganda’s oil and gas developments, including the planned 60,000-barrel-per-day Hoima Refinery, while contributing to energy security, regional trade expansion, and economic growth across East and Central Africa.

Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, described the partnership as an important milestone in advancing regional industrialisation and shared prosperity.

She said feasibility studies for a refined petroleum products pipeline and storage terminal are expected to be completed later this year, while studies for a natural gas pipeline connecting Uganda and Tanzania are scheduled for completion by October 2026.

Dr. Musenero also highlighted progress on the Uganda–Tanzania 400kV electricity interconnector, noting that Uganda has secured US$250 million in World Bank financing for its section of the project.

Tanzania’s Minister of Energy, Hon. Deo Ndejembi, said the agreement represents a continuation of cooperation developed under EACOP and noted that the Tanga Regional Energy Hub has the potential to attract investments exceeding US$20 billion.

He added that the Tanga Hub and Uganda’s Hoima Refinery are complementary projects, with a proposed bidirectional multi-product pipeline expected to support the movement of refined petroleum products according to regional market needs.

The engagements concluded with President Samia hosting President Museveni at a State Luncheon, where both leaders reaffirmed the friendship and strategic partnership between Uganda and Tanzania.

The two countries continue to pursue joint initiatives aimed at promoting regional integration, improving energy security, and supporting shared economic development.