Joint regional oil refinery project gathers pace in Tanzania

DODOMA: A strategic project to develop an integrated refining and energy hub in Tanga has gathered pace following the formation of special coordination teams, which are currently working to ensure that the ambitious project is realised on time.

The development comes approximately a month after Tanzania, Uganda and Vitol Bahrain E.C signed a Memorandum of Understanding (MoU), alongside the Tanzania Petroleum Development Corporation (TPDC) and the Uganda National Oil Company (UNOC), to implement the project.

TPDC Executive Director Mussa Makame revealed this in Dodoma on Monday when he briefed reporters on the corporation’s performance during the 2025/26 financial year and ongoing projects being implemented in the current financial year.

“Following the signing of the Memoranda of Understanding (MoUs) among the parties implementing the project, project coordination teams have been formed and have started carrying out various activities that will facilitate its efficient implementation,” Mr Makame told reporters in the capital.

He said the project involves the construction of crude oil refining facilities, crude and refined petroleum product storage facilities, pipelines for transporting refined petroleum products and other supporting infrastructure.

The project appears to complement another project currently being implemented by Tanzania and Uganda, the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which is 92.7 percent complete, according to the TPDC boss.

Regarding the development of EACOP, Mr Makame said the first drop of crude oil is expected to enter Pump Station No. 1, located in Uganda, in December 2026.

After that, he added, crude oil will be pumped through the pipeline system from Uganda to Tanzania for about two months, reaching Chongoleani in Tanga in February 2027.

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“After arriving in Tanga, the crude oil will be stored in four tanks with a combined capacity of two million barrels. Upon completion of tests to verify the tanks’ storage capacity, loading of the first crude oil shipment onto a vessel is expected to begin in March 2027,” he added.

Explaining how the project has benefited the country so far, the TPDC boss said a total of 10,000 jobs had been created, of which 7,500, equivalent to 75 per cent, had benefited Tanzanians.

He added that more than 200 Tanzanian companies had been awarded contracts to supply goods and services worth more than 1.325tri/-.

On the other hand, the TPDC Executive Director noted that negotiations among parties involved in the 42-billion-US-dollar (over 100 trillion/-) Liquefied Natural Gas (LNG) mega-project had been completed and that the project was currently at the legal framework stage, which will be presented to the Government and Parliament for approval during this financial year.

Located at Likong’o in Lindi Region, the flagship project involves Shell and Equinor, together with other players, including ExxonMobil.

He also said five projects to transport gas and oil to neighbouring countries, including Kenya, Uganda, Zambia and Mozambique, were progressing accordingly.

He cited the natural gas pipeline project to Uganda, saying the consultant had already started conducting a feasibility study.

“Completion of the feasibility study will allow the countries involved to agree on how the project will be operated before a contractor is sought for its construction,” he said.

Another project, according to Mr Makame, is the refined petroleum products pipeline to Uganda, for which the consultant is continuing with a feasibility study that is expected to be completed in March 2027.

Other projects include the natural gas pipeline to Kenya (Mombasa), where an expert team is improving the draft bilateral agreements, while the new refined petroleum products pipeline to Zambia, under a Public-Private Partnership (PPP) arrangement, is undergoing due diligence.

Regarding the natural gas pipeline from Mozambique to Tanzania, he said discussions were ongoing between expert teams from the two countries, while the draft Memorandum of Understanding (MoU) had been completed and submitted to the Ministry of Foreign Affairs and East African Cooperation for review.

Regarding the corporation’s performance during the last financial year, Mr Makame said TPDC recorded a profit of 72.98bn/- and paid 50.04bn/- in taxes.

He added that during the same period, TPDC paid a total of 142.61bn/- in profit gas share and royalties to the Oil and Gas Revenue Fund, as well as dividends amounting to 15.118bn/-.