DODOMA: A project to develop an integrated refining and energy hub in Tanga is advancing, with special coordination teams now in place to ensure timely completion.
This update follows the signing of a Memorandum of Understanding (MoU) about a month ago between Tanzania, Uganda, and Vitol Bahrain E.C, alongside the Tanzania Petroleum Development Corporation (TPDC) and the Uganda National Oil Company (UNOC).
TPDC Executive Director Mussa Makame announced the news in Dodoma, where he reported on the corporation’s financial performance for 2025/26 and current projects.
He stated that the project will include the construction of crude oil refining facilities and storage units, as well as pipelines for transporting refined products and additional infrastructure.
This initiative complements the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which is 92.7% complete, according to Makame. He noted that the first crude oil is expected to enter Pump Station No. 1 in Uganda in December 2026, with the pipeline to Tanga scheduled to be operational by February 2027.
Upon arrival in Tanga, the crude oil will be stored in four tanks with a capacity of two million barrels. Testing will take place before the first shipment is loaded onto a vessel in March 2027.
Makame highlighted that the project has created 10,000 jobs, with 7,500 going to Tanzanians, and over 200 local firms have secured contracts valued at more than 1.325 trillion shillings.
Additionally, he confirmed that negotiations for a 42-billion-dollar liquefied natural gas (LNG) project have concluded, and legal frameworks will be presented to the Government and Parliament for approval this financial year. This flagship project, located in Lindi Region, involves Shell, Equinor, and ExxonMobil.
Makame noted that five projects to transport gas and oil to Kenya, Uganda, Zambia, and Mozambique are progressing. A feasibility study for a gas pipeline to Uganda is underway, while a similar study for a refined petroleum products pipeline to Uganda is set to finish by March 2027.
Further projects include a natural gas pipeline to Kenya and a new pipeline to Zambia under a Public-Private Partnership (PPP). Discussions are also ongoing for a natural gas pipeline from Mozambique to Tanzania, with a draft MoU submitted for review.
Regarding the TPDC’s performance last year, Makame reported a profit of 72.98 billion shillings and tax payments of 50.04 billion shillings. Additionally, TPDC contributed 142.61 billion shillings in profit gas share and royalties to the Oil and Gas Revenue Fund, alongside dividends of 15.118 billion shillings.
