Saudi Arabia, UAE to establish major petroleum hub in Tanzania

Saudi Arabia and the UAE have agreed to establish a giant petroleum hub in Dar es Salaam, Tanzania, according to local reports in the East African country on Monday.

The proposed gas and oil hub planned for Tanzania's main commercial city will accommodate an oil refinery to process crude oil into various petroleum products and assist manufacturing plants, reports citing Minister for Energy January Makamba said.

"Global fuel prices have been on the rise in recent months, with Tanzania suffering the consequences," Makamba said. "This prompted President Samia Suluhu Hassan to issue directives to my ministry to address the problem promptly."

The ambitious development plans come after meetings between delegations from all three countries, which took place earlier this year in Algeria, in an attempt to keep fuel prices in Tanzania stable and low, reports said.

The planned hub will guarantee fuel supply for Tanzania, reports added.

Earlier this year, Saudi Foreign Minister Faisal bin Farhan met with the Tanzanian President Samia Suluhu Hassa in Dar es Salaam where the two reviewed bilateral relations and ways to enhance them in all fields.