Uganda and Tanzania have entered advanced negotiations to construct a pipeline for refined petroleum products, a move aimed at bolstering regional energy security and ending Uganda’s long-standing dependence on Kenyan transit routes.
The initiative gained momentum following a meeting on Saturday between Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan. The leaders agreed to fast-track a pipeline linking Uganda to the Tanzanian port of Tanga, further solidifying Tanzania’s role as a primary corridor for landlocked Uganda.
“We reviewed progress on key projects, including the East African Crude Oil Pipeline (EACOP), which is on course, as well as plans for gas and refined oil pipelines,” Museveni said in a statement on X. He noted that the partnership would strengthen shared energy security and position Tanzania as a “key export corridor.”
The proposed project will complement the 1,443-kilometer EACOP, which is currently under construction to transport crude from Uganda’s Lake Albert oilfields to the coast.
Unlike the EACOP, the new refined products pipeline is envisioned as a two-way system. Initially, it will allow Uganda to import fuel through Tanzania while its own refinery is built; eventually, it will be used to export processed Ugandan fuels to international markets.
With Uganda currently relying on Kenya for approximately 90% of its refined petroleum, the move marks a significant shift in East African logistics. This trade is vital for the Kenya Pipeline Company, which derives an estimated 35% of its annual revenue from the Ugandan market.
By diversifying its supply lines, Uganda aims to mitigate the risks associated with relying on a single transit corridor.
Officials from both nations confirmed that technical, commercial, and regulatory reviews are underway.
While a final investment decision has yet to be reached, the pipeline is viewed as a cornerstone of the Uganda National Oil Company’s strategy to stabilize domestic fuel prices and enhance regional integration.
If realized, the project would join the EACOP and the planned refinery in the Albertine Graben as the third major pillar of Uganda’s multi-billion-dollar emerging oil sector.