Tanzania-Zambia Oil Pipeline Eyes Expansion Amid Lobito Corridor Competition

TAZAMA Pipeline Limited, operator of the Tanzania-Zambia Mafuta pipeline, recently met with the Office of the Treasury Registrar (OTR) in Dar es Salaam to discuss its strategic direction and potential expansion in Tanzania. The meeting, which took place on 9 November 2026, was attended by TAZAMA's Zambia-based Acting Managing Director, Ian Mutale, and other senior officials. The talks focused on the company's business opportunities and competitiveness in the regional energy market.

The TAZAMA pipeline, which spans 1,710 kilometres between Dar es Salaam and Ndola in Zambia, was commissioned in 1968 and was initially designed to carry 1.1 million tonnes of oil per year. In March 2023, the operator converted the line from pumping crude oil to pumping finished product, specifically low-sulphur gas oil. This conversion aimed to adapt to changing market demands and optimize the pipeline's operations.

The Government of Tanzania, through the OTR, holds a 33.3% stake in TAZAMA, while the Government of Zambia owns the remaining 66.7%. The two governments have previously discussed building a new USD 2.5 billion oil pipeline, and the operator has also sought USD 400 million to upgrade the existing line. These plans are part of a broader effort to enhance the pipeline's capacity and efficiency.

During the meeting, Mutale highlighted Tanzania as a natural area for potential expansion, given TAZAMA's existing operational foundation in the country. He noted that this foundation provides a significant advantage over markets where the company would need to establish infrastructure and business relationships from scratch. This strategic positioning is crucial in the face of emerging competition from alternative transportation infrastructure, such as the Lobito Corridor.

The Lobito Corridor, a new transportation route, has raised competition for TAZAMA's pipeline. Mutale drew attention to this development and its potential implications for the company's future business. In response, TAZAMA is focusing on strengthening its competitiveness in the regional energy market through a strategic shareholder approach that prioritizes commercial sustainability, business growth, and value creation.

Treasury Registrar, Nehemiah Mchechu, emphasized the importance of managing public investments through a strategic shareholder approach. This approach aims to ensure that TAZAMA operates efficiently and effectively, maximizing its potential for growth and returns on investment. By adopting this strategy, TAZAMA can maintain its position in the market and capitalize on emerging opportunities.

As TAZAMA continues to navigate the competitive energy landscape, the company is exploring opportunities for expansion and growth. With its existing pipeline and strategic positioning in Tanzania, TAZAMA is well-placed to respond to emerging challenges and capitalize on new opportunities in the regional petroleum transportation market.

Key points

• TAZAMA Pipeline Limited seeks to expand its operations in Tanzania amid competition from the Lobito Corridor.
• The company has converted its pipeline from pumping crude oil to pumping finished product, specifically low-sulphur gas oil.
• The Government of Tanzania and the Government of Zambia own stakes in TAZAMA, with plans to build a new USD 2.5 billion oil pipeline and upgrade the existing line.