Uganda and Tanzania has agreed to build a $4bn crude oil pipeline across the two East African countries.
The proposed link would stretch 1,120km, connecting landlocked Ugandan oil fields to the Tanzanian coast.
The project is expected to create 15,000 jobs during the construction phase.
According to a statement by Tanzania's presidential press unit, the proposed pipeline will pass through Tanga.
In mid-2015, the two countries had agreed to build the pipeline through the Northern Lamu route. The proposal was rejected by France's Total, an investor in Uganda's pipeline, due to insecurity along the route.
Tanzania director of state house communication Gerson Msigwa said: "The two agreed to begin construction of the crude oil pipeline from Tanga to Uganda, for the benefit of the two countries and their East African counterparts."