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Kampala, Uganda | THE INDEPENDENT | Vivo Energy Uganda and the Uganda National Oil Company (UNOC), on behalf of the Ministry of Energy and Mineral Development, today formalized a landmark partnership to develop significant Liquefied Petroleum Gas (LPG) storage infrastructure at the Kabalega Industrial Park.
This strategic collaboration is set to revolutionize access to clean cooking fuels, foster economic growth, and enhance Uganda’s energy security.
The partnership aligns with UNOC’s mandate to integrate upstream gas production with domestic consumption, scaling up facilities to meet anticipated local and regional demand for LPG. The Kabalega Industrial Park, managed by UNOC and envisioned as Uganda’s oil export hub and international airport site, will now also host crucial LPG storage tanks, handling, and cylinder filling equipment.
A key benefit of this initiative is the establishment of robust LPG storage and filling capacity, which will anchor supply integration from Uganda’s upstream production projects, including Kingfisher and Tilenga. This will significantly enhance access to clean cooking fuels across the country, supporting ongoing campaigns to increase domestic LPG uptake and reduce reliance on biomass fuels. This shift is expected to protect Uganda’s forests and improve public health.
Beyond environmental and health benefits, the project is poised to stimulate economic growth, create local jobs, and strengthen national content in Hoima and surrounding regions.
Proscovia Nabbanja, Chief Executive Officer of UNOC, emphasized the significance of the agreement, stating, “Today is a day when we celebrate one of the key milestones we’ve made”.
“This early project activities agreement sets out the general framework within which we shall undertake the early phase technical activities… these activities are very essential for the final investment decision and future execution under a joint venture company we intend to form.”
Nabbanja traced the origins of the partnership back to discussions in February 2023, highlighting Vivo Energy’s early interest and commitment to supporting Uganda’s upstream LPG projects.
Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda, expressed her honour in formalizing the partnership.
“This agreement for me is a clear demonstration of what is possible when the private sector and government come together with a shared vision,” she said.
Menya highlighted Vivo Energy’s long-standing heritage and over 70 years of experience serving Ugandans, reiterating their commitment to “fuel Uganda’s growth” by providing safe, accessible energy solutions that improve lives.
Hans Paulsen, Executive Vice President East of Vivo Energy, highlighted the regional importance of the collaboration.
“The development of LPG infrastructure at Kabalega Industrial Park represents a fundamental shift in our energy landscape. This initiative in Uganda is part of a broader regional momentum as it complements similar efforts in Namibia, Reunion, and Mayotte among others— and showcases how public-private partnerships can accelerate Africa’s clean energy transition.”
Nimit Shah, Chief Financial Officer of the Vivo Energy Group, further connected the project to a broader pan-African commitment, noting it is part of a $550 million investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa.
“That commitment supports LPG infrastructure development, safe cylinder distribution, and clean cooking projects in our African markets,” Shah stated.
“To date, the Vitol Group has enabled access to clean cooking for over 10 million households across Africa. We are proud that Uganda is now a key part of this journey.”
The execution of this major project will commence immediately following today’s signing ceremony, with technical design and site preparation advancing in coordination with the Kabalega Industrial Park masterplan and ongoing infrastructure works.
This initiative is a crucial component of UNOC’s ongoing oil and gas infrastructure development, contributing significantly to Uganda’s energy security and sector transformation.
