Museveni Backs Regional Refinery Bid, Affirms Uganda's Hoima Project

President Yoweri Kaguta Museveni recently met with Nigerian business magnate Aliko Dangote to discuss energy cooperation and the future of petroleum processing in East Africa. During their high-level discussions at State Lodge Nakasero, Museveni affirmed his support for a significant regional refinery project championed by Dangote.

This proposed facility is envisioned as a multi-billion-dollar venture, potentially costing between $15 billion and $17 billion, with a substantial capacity to process 650,000 barrels of crude oil daily. The refinery would aim to serve a wide range of regional markets, including Uganda, Kenya, Tanzania, Ethiopia, and South Sudan, enhancing East Africa’s energy security and reducing reliance on imported fuels.

However, amidst discussions about the larger regional project, President Museveni reiterated Uganda’s commitment to its own domestic refinery. The Hoima refinery, planned for Kabaale in Kikuube District, is set to process 60,000 barrels per day in its initial phase. Museveni stressed that this national project remains on track, aligning with Uganda’s policy of adding value to its natural resources rather than exporting raw crude.

“We have no problem supporting a broader regional refinery that can guarantee energy security for the region while Uganda also develops its own refinery,” Museveni stated. “The Hoima refinery will continue as planned because value addition remains critical for Uganda’s economic transformation.”

Aliko Dangote, founder of the Dangote Refinery in Nigeria, highlighted that the East African proposal aims to meet the growing demand for fuel across the region. His team is currently evaluating potential host locations, with sites in Tanzania and Kenya under consideration. Consultations with various East African governments are ongoing.

Uganda’s first oil production from the Albertine Graben fields is anticipated soon, supported by infrastructure like the East African Crude Oil Pipeline (EACOP). Officials from Uganda’s Ministry of Energy and Mineral Development have reassured stakeholders that both the national refinery and broader regional energy cooperation initiatives will continue to be pursued, emphasizing the multifaceted benefits of a national refinery beyond just fuel production.

Source: Uganda Investment Authority