Uganda Boosts Fuel Security with New 320 Million Litre Storage Terminal

Uganda is poised to dramatically increase its capacity for storing refined petroleum products with the development of the Kampala Storage Terminal. Located in Mpigi District, this ambitious project aims to hold 320 million litres, marking a significant stride in strengthening the nation’s fuel security and improving the resilience of its downstream petroleum sector.

The new terminal is a key component of the Fourth National Development Plan (NDP IV), which seeks to expand national storage capacity for refined petroleum products from approximately 99.1 million litres in the 2023/24 financial year to 150 million litres by 2029/30. This initiative also includes plans to upgrade the Jinja Storage Terminal and establish regional storage facilities in several key towns across Uganda.

During the groundbreaking ceremony, President Yoweri Museveni highlighted how government interventions have already led to notable reductions in fuel costs. He emphasized the critical need for adequate storage as Uganda progresses in developing its natural resources, stating that current storage capacity is insufficient for national demand.

The Kampala Storage Terminal, a project estimated at US$310 million, will be developed, owned, and operated by the Uganda National Oil Company (UNOC), with government support for financing. UNOC Chairman Mathias Katamba described the terminal as a pivotal development that will help position Uganda as a regional hub for petroleum products.

Construction activities are set to commence immediately following the groundbreaking, with detailed engineering projected for completion by March 2027. The terminal is expected to be commissioned approximately 24 months later, around September 2028. This facility will not only serve as a strategic reserve for Uganda but also as a distribution hub, a hospitality terminal for oil marketing companies, and a crucial support for regional bulk trading operations.

According to the Ministry of Energy and Mineral Development, the terminal’s operationalization will significantly enhance Uganda’s ability to manage strategic stocks, mitigate risks from supply disruptions, and improve the overall efficiency of fuel distribution, which is vital for the country’s transport, manufacturing, and agricultural sectors. The project is also anticipated to generate local employment and business opportunities.

https://nilepost.co.ug/news/371575/kampala-storage-terminal-set-to-boost-petroleum-supply-and-bulk-trading