Uganda’s national oil and gas ambitions have taken a significant step forward with the signing of a landmark agreement between the Uganda National Oil Company (UNOC) and Vivo Energy Uganda. The agreement will see the development of a state-of-the-art Liquefied Petroleum Gas (LPG) storage and distribution facility at Kabalega Industrial Park in Hoima District.
This milestone partnership is a strategic move in Uganda’s clean energy transition, aligning domestic LPG production with modern storage and supply infrastructure to meet the growing demand for cleaner cooking fuels across households, institutions, and industries.
Under the agreement, UNOC and Vivo Energy Uganda will jointly construct and operate bulk LPG storage tanks, cylinder filling infrastructure, and advanced handling facilities. The project is aligned with the master plan of Kabalega Industrial Park—an emerging hub for Uganda’s oil and gas ecosystem, which also hosts the East African Crude Oil Pipeline (EACOP) terminal and the site of a planned international airport.
UNOC Chief Executive Officer Proscovia Nabbanja described the partnership as a timely and impactful development that will broaden access to affordable, 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 initiative also supports UNOC’s broader mandate of enhancing national energy security. By integrating upstream gas production—including associated gas from oil fields—into the domestic consumption mix, Uganda will be better positioned to expand clean cooking initiatives and reduce dependence on biomass, thereby protecting the country’s forest resources.
Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda, welcomed the conclusion of what she called a long-anticipated agreement that was first 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 further noted that the facility will not only support domestic consumption but also empower small businesses and industrial operations, reinforcing Uganda’s potential to become a regional exporter of clean energy solutions.
Hans Paulsen, Executive Vice President East at Vivo Energy, placed the Hoima LPG facility within a broader regional clean energy strategy.
“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 Hoima project also aligns with a $550 million clean energy investment pledge made by Vitol and Vivo Energy during the 2024 Summit on Clean Cooking in Africa. According to Vivo Energy Group CFO Nimit Shah, the pledge has already enabled 10 million households across the continent to access clean cooking solutions—now including Uganda as a key beneficiary.
A Turning Point for Uganda’s Oil Sector
The Kabalega LPG project adds to a growing list of strategic downstream investments by UNOC, including the recently completed Jinja Storage Terminal and ongoing development of other national bulk storage sites.
This latest development supports the government’s broader goals under the National Oil and Gas Policy, which emphasizes local content, value addition, and industrial transformation using Uganda’s oil and gas resources.
Technical designs and preparatory work for the LPG facility will now begin, integrated into other ongoing infrastructure projects within Kabalega Industrial Park. The park is quickly emerging as Uganda’s premier oil and energy hub.
