Eng Octavian Lasway@Octavianlasway
Tanga Refinery: Tanzania’s Next Big Energy Diplomacy Opportunity
1. Tanzania has already won the first strategic energy battle.
Tanzania has a strong chance to host the proposed East African oil refinery in Tanga, but this opportunity must now be supported by serious lobbying, economic diplomacy, and bankable project preparation. The country has already demonstrated its capacity to negotiate major regional infrastructure by securing the East African Crude Oil Pipeline route from Kabaale–Hoima in Uganda to Chongoleani near Tanga Port. This pipeline is about 1,443 km long and is expected to carry up to about 246,000 barrels of crude oil per day, making Tanga one of the most strategic energy corridors in East Africa.
2. Tanga is the most logical location for the refinery.
If crude oil is already planned to move through this corridor, then Tanzania can make a strong case for refining, storage, distribution, and export facilities around the same location. A practical refinery could start with about 100,000–150,000 barrels per day in the first phase and later expand toward 200,000–250,000 barrels per day, depending on crude availability, financing, and regional fuel demand. This would position Tanzania not only as a transit country, but as a value-adding energy and industrial hub.
3. The refinery should serve a wider regional market.
This project should not be viewed as a Tanzanian market project alone. It should be positioned to serve Tanzania, Uganda, Kenya, Rwanda, Burundi, eastern DRC, South Sudan, Zambia, Malawi, and other nearby markets. Tanzania’s ongoing Standard Gauge Railway project strengthens the Central Corridor toward Rwanda, Burundi, and DRC, while the proposed Tanzania–Burundi–DRC SGR connection can open wider access to the Great Lakes region. At the same time, the revitalization of the 1,860 km TAZARA railway strengthens Tanzania’s connection to Zambia and the southern corridor, while the TAZAMA pipeline gives Tanzania an existing petroleum link to Zambia through Dar es Salaam and Ndola.
4. Tanzania must move from logistics to value addition.
A refinery in Tanga would not stand alone. It would connect to a wider regional logistics system made up of ports, pipelines, railways, roads, storage facilities, and inland markets. Tanzania is already a petroleum logistics route, but the next step is to move higher in the value chain. Instead of only importing, storing, and transporting refined petroleum products, Tanzania should produce refined products and distribute them across East, Central, and Southern Africa. The benefits would go beyond fuel supply: petrochemicals, fertilizer inputs, plastics, bitumen for road construction, LPG, storage terminals, steel fabrication, civil works, port expansion, railway logistics, industrial parks, and thousands of direct and indirect jobs.
5. The pipeline was the first victory; the refinery should be the next.
Dangote’s experience makes this opportunity serious. The group has already developed a refinery in Nigeria with a capacity of about 650,000 barrels per day, showing strong experience in large-scale refining, petrochemicals, logistics, and integrated industrial development. Tanzania must now move quickly by preparing land in Tanga, strengthening port and storage planning, aligning refinery planning with EACOP, SGR, TAZARA and TAZAMA, offering competitive investment incentives, and engaging Uganda, Kenya, Rwanda, Burundi, DRC, South Sudan, Zambia, and Malawi. The crude oil pipeline was Tanzania’s first major energy diplomacy victory; the refinery should be the next. Tanzania must move from being only a crude oil transit corridor to becoming a regional refining, logistics, and industrial powerhouse.