Vitol Group, an energy and commodities company, has signed a non-binding agreement with the governments of Tanzania and Uganda to develop a regional energy hub at the Port of Tanga, a move that could reshape fuel distribution and energy security across East Africa.

The agreement brings together Tanzania Petroleum Development Corporation (TPDC), Uganda National Oil Company (UNOC) and Vitol Bahrain, reinforcing growing public-private cooperation as East Africa prepares for increased crude production and regional fuel demand.

Tanga positioned as East Africa’s next energy gateway

The Port of Tanga is rapidly emerging as one of East Africa’s most strategic energy gateways. The port is expected to play a critical role in supplying refined petroleum products to landlocked markets including Rwanda, Burundi and eastern Democratic Republic of Congo while serving as the export terminal for the East African Crude Oil Pipeline (EACOP).

Uganda is expected to begin commercial crude production later this year, making reliable export and storage infrastructure increasingly important. Industry analysts view Tanga’s location as a competitive advantage that could diversify regional supply chains beyond Kenya’s Port of Mombasa.

Although the partners have not disclosed the project’s final scope, Tanzania’s government estimates that future investments in storage terminals, petroleum handling facilities and related infrastructure could exceed $20 billion, making it one of the country’s most ambitious energy infrastructure initiatives.

Reducing dependence on existing fuel routes

Uganda currently imports about 95% of its petroleum products—nearly 2.96 billion liters annually—through Kenya’s Port of Mombasa and the Kenya Pipeline Company network. The proposed Tanga hub is expected to create an alternative supply corridor, improving fuel security, reducing logistics risks and supporting growing regional consumption.

Vitol Bahrain already serves as Uganda’s exclusive supplier of petroleum products. Last year, the company signed a $2 billion agreement with UNOC that strengthened its long-term presence in the country’s downstream energy sector and supported its acquisition of a 20.15% stake in Kenya Pipeline Company during its public listing.

Vitol expands its East African footprint

Founded in Rotterdam in 1966 and headquartered in Switzerland, Vitol is among the world’s largest independent energy and commodities traders, handling more than 8 million barrels of crude oil and petroleum products daily. The company operates an extensive global network spanning trading, refining, shipping, storage and sustainable energy investments.

The proposed Tanga energy hub underscores Vitol’s strategy of investing in critical energy infrastructure while positioning Tanzania as a regional logistics center capable of supporting East Africa’s expanding oil and fuel markets. Such investments are expected to improve supply resilience, attract private capital and strengthen cross-border energy trade.