Tanzania and Uganda have taken a significant step towards establishing a major energy hub in Tanga. A joint technical committee handed over the Chongoleani project site to Worley Consulting Group Limited on October 1, 2026, to begin preliminary feasibility studies. The studies will cover soil testing, environmental assessments, and facility designs for the Tanga Regional Energy Hub. This project is a partnership between the Uganda National Oil Company, the Tanzania Petroleum Development Corporation, and Vitol Bahrain E.C.
The Tanga Regional Energy Hub is expected to be one of the largest energy infrastructure projects in Sub-Saharan Africa, with projected investments exceeding $20 billion. Tanzania's Ministry of Energy Assistant Commissioner for Midstream and Downstream Petroleum, Grace Mwakasege, stated that the project aims to make Tanga a regional focal point for petroleum activity. The development is designed to contribute to the growth of oil and gas activities in the East African region.
The Tanga hub is closely linked to the East African Crude Oil Pipeline (EACOP), a 1,443-kilometer conduit running from Uganda's Albertine Graben to the Chongoleani Peninsula. As of late September 2026, the pipeline was approximately 93% complete, with engineers expecting it to be ready to receive crude by mid-December 2026. First oil is projected to reach Chongoleani in February 2027.
Uganda's Ministry of Energy and Mineral Development Assistant Commissioner, Geofrey Ogwang, emphasized that the cooperation between Tanzania and Uganda will deliver tangible economic benefits at a community level. The initiative is expected to create employment opportunities, facilitate technology transfer, and increase economic activities for the people of Chongoleani and Tanga.
Meanwhile, Kenya has officially kicked off the construction of a $16 billion Dangote refinery in Lamu County. The refinery, led by Nigerian businessman Aliko Dangote, is designed to process 700,000 barrels of crude oil per day and co-generate up to 1,000 megawatts of electricity. The project is expected to create up to 60,000 direct and indirect jobs.
The groundbreaking ceremony for the Lamu refinery was attended by President William Ruto, Ugandan President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed, and the leaders of Togo and Benin. President Ruto framed the ceremony as a turning point, stating that the launch transformed a long-held ambition into a real opportunity for Kenya, East Africa, and Africa.
While Uganda's President Museveni expressed support for the Lamu project, he also stated that Uganda would withhold direct investment until he had consulted with President Samia Suluhu of Tanzania about the delayed progress on the Tanga refinery. The competing projects have sparked debate over which country will emerge as East Africa's dominant petroleum processing and logistics hub.
Key points
- The Tanga Regional Energy Hub is expected to be one of the largest energy infrastructure projects in Sub-Saharan Africa.
- Kenya's Dangote refinery is designed to process 700,000 barrels of crude oil per day.
- The East African Crude Oil Pipeline (EACOP) was approximately 93% complete as of late September 2026.
