Tanzania, Uganda agree plans for East African energy hub
The two countries signed an agreement with Vitol, the world's largest independent oil trader, to transform Tanzania’s Tanga Port.
Tanzania and Uganda have reached an agreement with Vitol, the world's leading independent oil trader, to transform Tanga Port into a regional energy hub. This collaboration is part of a broader effort to maximize the value derived from Africa's natural resources. The development of Tanga Port is significant as it comes amidst a major transformation in the continent's energy sector.
Uganda is set to commence commercial oil production, with the oil supplies anticipated to transit through the East African Crude Oil Pipeline to Tanzania's Tanga Port, where they can be exported to international markets. Currently, Uganda relies heavily on petroleum imports, primarily through Kenya's Port of Mombasa. The anticipated investments in new infrastructure, such as storage facilities, could surpass $20 billion, according to Tanzania's government.
The ongoing war in Iran has underscored the extent of East African countries' dependence on fuel imports. The proposed Tanga Port development could potentially reshape regional dynamics by establishing a refining and trading platform that integrates upstream Ugandan crude, downstream refining, and new fuel logistics.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
