Uganda: $310 million terminal to store 320 million liters
The Kampala Storage Terminal will increase the storage capacity at the new site in Mpigi to 320 million liters. The nearly $310 million project is being developed by the Uganda National Oil Company.
Ugandan President Yoweri Museveni inaugurated the construction of the Kampala Storage Terminal on Thursday, September 17, in Namwabula, Mpigi District. This oil project is estimated to cost around $310 million and is being developed by the Uganda National Oil Company (UNOC). The facility is designed to store up to 320 million liters of petroleum products.
The terminal will accommodate gasoline, diesel, jet fuel, and kerosene. UNOC reports that Uganda consumes approximately 240 million liters of petroleum products per month, which means the announced capacity will cover just over a month of national consumption.
The site, located on about 300 acres west of Kampala, will complement the Jinja terminal and private depots. The government aims to have additional volumes to create strategic reserves and mitigate the impact of supply disruptions on the domestic market.
According to Uganda Business News, UNOC plans to hold 100% ownership of the project, having previously considered a partnership with a strategic investor. The terminal will also provide storage capacity for petroleum product distributors.
The project will be connected to the future Hoima refinery via a refined products pipeline of approximately 211 kilometers. This connection will transport locally produced fuel to Mpigi before distribution to Kampala, the central region, and other markets.
Uganda remains heavily reliant on regional corridors for its refined fuels. Uganda Business News estimates that 95% of imported volumes pass through the northern corridor via Kenya, while 5% come through the Tanzanian route, with national consumption reaching about 2.9 billion liters per year.
Comments