Uganda’s national oil aspirations have received a major boost as the Uganda National Oil Company (UNOC) and Vivo Energy Uganda signed a landmark agreement to develop a state-of-the-art Liquefied Petroleum Gas (LPG) storage and distribution facility at the Kabalega Industrial Park in Hoima District.
The agreement marks a strategic step in Uganda’s energy transition journey, aligning domestic LPG production with storage and supply infrastructure to meet rising demand for cleaner cooking fuels across households, institutions, and industries.
Under the partnership, the two companies will collaborate to construct and operate bulk LPG storage tanks, cylinder filling infrastructure, and handling facilities. The project will be implemented in line with the masterplan of the Kabalega Industrial Park — a key component of Uganda’s emerging oil and gas ecosystem that also houses the East African Crude Oil Pipeline (EACOP) terminal and future international airport.
UNOC Chief Executive Officer Proscovia Nabbanja described the partnership as a pivotal intervention that will expand access to affordable and clean energy solutions.
“This partnership with Vivo Energy Uganda reflects our shared commitment to investing in cleaner energy solutions and advancing Uganda’s industrial development goals. The LPG storage infrastructure project in Hoima is a strategic intervention that will improve energy access and affordability for households, institutions, and businesses across the country,” she said.
The agreement also supports UNOC’s mandate to enhance national energy security by integrating upstream gas production — including associated gas from oil fields — into Uganda’s domestic consumption mix. The LPG infrastructure will serve as a backbone for expanded clean cooking initiatives, reducing the country’s reliance on biomass and protecting forest cover.
Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda, commended the finalisation of the long-anticipated agreement, initially conceptualised two years ago.
“Partnering with UNOC on this LPG storage project positions Vivo Energy to support Uganda’s clean energy transition by ensuring reliable, safe and affordable LPG storage and distribution. We remain committed to modernising Uganda’s energy infrastructure and promoting the safe use of LPG as a clean cooking alternative,” she said.
Menya noted that the facility will not only benefit domestic users but also support small businesses and industrial operations, positioning Uganda as a potential regional exporter of clean energy solutions.
Hans Paulsen, Executive Vice President East at Vivo Energy, said the Hoima LPG facility forms part of a broader regional strategy to support Africa’s energy transition.
“This development at Kabalega Industrial Park represents a fundamental shift in our energy landscape. It complements similar projects in Namibia, Reunion, and Mayotte — showcasing how public-private partnerships can accelerate Africa’s clean energy momentum,” Paulsen said.
The project also aligns with a USD 550 million clean energy investment pledge by Vitol and Vivo Energy, announced at the 2024 Summit on Clean Cooking in Africa. According to Vivo Energy Group CFO Nimit Shah, that commitment has already helped 10 million households across Africa access clean cooking solutions — and now includes Uganda as a key beneficiary.
A turning point for Uganda’s oil
The Kabalega LPG project is the latest in a series of strategic investments by UNOC aimed at strengthening Uganda’s downstream oil and gas infrastructure. It follows the completion of the Jinja Storage Terminal and ongoing development of other national bulk storage sites.
The Hoima development will support the government’s broader goals under the National Oil and Gas Policy, which prioritises local content, value addition, and industrial transformation through oil and gas resources.
Technical designs and preparatory works for the LPG facility will now proceed, integrated within ongoing infrastructure projects at Kabalega Industrial Park, which is rapidly emerging as Uganda’s premier oil and energy hub.
