President Yoweri Kaguta Museveni has today September 17th launched the construction works of Uganda’s 320-million-litre fuel storage terminal in Mpigi District.
The project named “Kampala Storage Terminal” is situated in Buloba- Mpigi District and being implemented by the Uganda National Oil Company is intended to enhance Uganda’s inland fuel storage capacity with additional 320 million litres of fuel to ensure security of supply and effective fuel distribution in the country.
This terminal supplement the existing 160 million fuel storage facilities in Uganda which include 30 million liter storage facility at Jinja, Mahathi storage facility at Kawuku and the 60 million storage facilities by private oil companies.
While speaking at the event, President Museveni noted that the development of such fuel storage facilities is long overdue and attributed the delay to sleepy technical officers in the Ministry of Energy who for failed to implement government’ directive to directly procure from oil Refineries and instead reallied on brockers.
The President guided the Ministry of Energy officials to fast track the establishment of more regional fuel storage facilities to meet the need adding that current developments are still insufficient to address the existing demand.
President Museveni outlined Uganda’s clear plan to construct more Pipelines and Railways for fuel transportation as opposed to using road transport that targets transportation of fuel from Hoima refinery to Buloba fuel storage terminal while the railway intended to deliver fuel to regional markets and inland distant areas.
He shared Uganda’s strategic partnership with Vitol Bahrain E.C oil supply arrangement that saved the country from opportunistic middlemen in the fuel distribution value chain.
The President directs the Permanent Secretary in the Ministry of Energy Eng Irene Batebe to explain the quantified extent of loss, the middlemen drained from Uganda before the implementation of the fuel storage facilities and direct connection with fuel refineries.
President Museveni commended the Vitol Bahrain for their partnership with the Uganda National Oil Company for sustainable fuel supplies to the country and hinted on the broader plan for fuel supply stabilisation through the establishment of refineries at Hoima in Uganda and Tanga in Tanzania and also noted Uganda’s potential in unexploited oil reserves in Karamoja, Kyankwanzi, Kiboga and other areas.
The President rejected the idea by KCCA to establish a garbage dumping site in Mpigi district next to the 320 million liter fuel storage terminal being set up in that area and guided that garbage sites are prone to fine outbreaks and are such risky to fuel storage facilities and commended Buloba residents on wetland preservation efforts as seen in their area.
Earlier Minister of Energy and Mineral Development Dr Monica Musenero said that the project for Kampala Storage Terminal is a spine in Uganda’s Oil developments specifically supply infrastructure making it a regional fuel development strategy as a buffer to fuel shortages and consequences to the country.
While speaking at the same event, the Permanent Secretary Ministry of Energy and Mineral Development Eng Irene Batebe highlights the state of Uganda’s fuel reserves and impact of the additional 320 million liter storage facility in Mpigi district.
Eng Batebe statted that government is advancing adequate strengthening of fuel storage, resilience and pump price stability and highlighted the National Development Plan IV objectives for the energy sector.
The Uganda National Oil Company Board Chairman Mathias Katamba thanked President Museveni for launching the facility andoutlined specifics of Kampala fuel Storage Terminal project deliverables.
The Storage Capacity is 320 million liters and can store oil for a duration of 24 months and situated at a land measuring 300 acres and it has cost approximately US 250 million dollars.
