East Africa: Refinery Rivalry - Billion-Dollar Oil Projects Expose East Africa's Long-Running Regional Tensions

East Africa, a region of deep-rooted regional tensions, has struggled to establish cohesive economic policies, including energy infrastructure. The history of disagreements over the location of energy projects dates back more than two decades. In 2006, Uganda made a significant discovery of oil, capable of producing 210,000 to 230,000 barrels per day at its peak.

In 2014, Kenya and Uganda agreed to build a joint crude oil pipeline from Uganda's Lake Albert fields to Kenya's planned port at Lamu, but this plan was abandoned in 2016. By then, Uganda had opted for a southern route through Tanzania, forcing Kenya to reconsider its strategy.

This year, both Kenya's President William Ruto and Uganda's Yoweri Museveni announced plans for a new refineries in Tanzania, reportedly led by Nigeria's Aliko Dangote, Africa's wealthiest individual. Despite initial optimism, the Dangote refinery project was later shifted to Lamu, Kenya's new port north of Mombasa. However, Uganda and Tanzania later signed a memorandum of understanding with commodity trader Vitol Bahrain to construct a $20 billion regional energy hub in Tanga, Tanzania. This hub will include petroleum storage, refining, logistics, trading, and distribution facilities.

The latest developments in East Africa's energy rivalry have been reported by Brendon J. Cannon and Stephen Mogaka, who have covered regional politics, pipelines, and security for over a decade.