KAMPALA, Aug 7 – Tanzania and Uganda have signed a non-binding agreement with Vitol Bahrain, a subsidiary of global commodities trader Vitol, to develop a regional energy hub at the Port of Tanga in northern Tanzania.
The agreement brings together the Tanzania Petroleum Development Corporation (TPDC), the Uganda National Oil Company (UNOC) and Vitol Bahrain as partners in the proposed development, which is expected to strengthen East Africa’s energy infrastructure and regional fuel supply chain.
While the parties have yet to disclose the project’s final scope or investment structure, the Tanzanian government said potential spending on new infrastructure, including storage facilities, could exceed $20 billion.
The Port of Tanga is becoming an increasingly strategic energy gateway for the region. It is expected to serve as a key distribution centre for refined petroleum products to inland markets, including Rwanda, while also acting as the export terminal for the East African Crude Oil Pipeline (EACOP), which will transport crude oil from Uganda to international markets.
Uganda is expected to begin commercial crude oil production later this year, marking a significant milestone for the country’s emerging petroleum industry.
The agreement also builds on Vitol’s expanding presence in East Africa. Vitol Bahrain currently serves as the exclusive supplier of petroleum products to Uganda and, in 2025, signed a $2 billion agreement with UNOC that helped the company secure a 20.15% stake in Kenya Pipeline Company (KPC) following its public listing.
Uganda currently imports approximately 95% of its petroleum products, equivalent to nearly 2.96 billion litres annually, through Kenya using the Port of Mombasa and the Kenya Pipeline Company network.
The proposed Tanga energy hub is expected to diversify regional fuel supply routes, improve energy security and strengthen cross-border trade infrastructure as East African countries continue investing in integrated energy and logistics networks.
