A strategic project to develop an integrated refining and energy hub in Tanga, Tanzania, is progressing with the formation of special coordination teams. These teams are working to ensure the project is realised on time. This development comes a month after Tanzania, Uganda, and Vitol Bahrain E.C signed a Memorandum of Understanding (MoU) with the Tanzania Petroleum Development Corporation (TPDC) and the Uganda National Oil Company (UNOC).
The project involves constructing crude oil refining facilities, storage facilities for crude and refined petroleum products, and pipelines for transporting refined products. TPDC Executive Director Mussa Makame briefed reporters on the corporation's performance during the 2025/26 financial year and ongoing projects. He revealed that project coordination teams have been formed and have started activities to facilitate efficient implementation.
The project complements the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which is 92.7 percent complete. The EACOP project is being implemented by Tanzania and Uganda. According to Mr Makame, the first drop of crude oil is expected to enter Pump Station No. 1 in Uganda in December 2026. Crude oil will then be pumped through the pipeline from Uganda to Tanzania for about two months, reaching Chongoleani in Tanga in February 2027.
After arriving in Tanga, the crude oil will be stored in four tanks with a combined capacity of two million barrels. Loading of the first crude oil shipment onto a vessel is expected to begin in March 2027, after completion of tests to verify the tanks' storage capacity. The project has created 10,000 jobs, with 7,500, equivalent to 75 per cent, benefiting Tanzanians. Over 200 Tanzanian companies have been awarded contracts worth more than 1.325 trillion Tanzanian shillings.
The TPDC Executive Director noted that negotiations for the 42-billion-US-dollar Liquefied Natural Gas (LNG) mega-project have been completed. The project is currently at the legal framework stage, which will be presented to the Government and Parliament for approval during this financial year. The LNG project involves Shell and Equinor, along with other players, including ExxonMobil.
Five projects to transport gas and oil to neighbouring countries are progressing. These include a natural gas pipeline project to Uganda, where a consultant is conducting a feasibility study. Another project is the refined petroleum products pipeline to Uganda, with a consultant continuing a feasibility study expected to be completed in March 2027.
During the last financial year, TPDC recorded a profit of 72.98 billion Tanzanian shillings and paid 50.04 billion shillings in taxes. The corporation also paid 142.61 billion shillings in profit gas share and royalties to the Oil and Gas Revenue Fund, as well as dividends amounting to 15.118 billion shillings.
Key points
- The project involves the construction of crude oil refining facilities and storage facilities.
- The East African Crude Oil Pipeline (EACOP) is 92.7 percent complete.
- The project has created 10,000 jobs, with 75 per cent benefiting Tanzanians.
