Vivo Energy Uganda and Uganda National Oil Company (UNOC), have formalised a landmark partnership to develop Liquefied Petroleum Gas (LPG) storage infrastructure at Kabalega Industrial Park.
UNOC’s mandate includes bulk LPG production as part of its overarching strategy integrating upstream gas production with domestic consumption.
The company is scaling up facilities to support anticipated local and regional consumption increases.
Key benefits of the partnership include establishing LPG storage and filling capacity to anchor supply integration from Uganda’s upstream production projects.
This will enhance access to clean cooking fuels across the country, supporting ongoing campaigns aimed at increasing domestic LPG uptake and reduce dependence on biomass fuels, thereby protecting forests and improving public health.
The partnership will further stimulate economic value-chain growth, create local jobs and strengthen national content in Hoima and neighbouring regions.
The Kingfisher and Tilenga projects are expected to produce a combined annual LPG output of 100,000 metric tonnes. The proposed UNOC-Vivo joint venture will be responsible for off taking and marketing the Government and UNOC’s share of this allocation.
Speaking at the signing ceremony, Proscovia Nabbanja, Chief Executive Officer of UNOC said, “This partnership with Vivo is a testament to our commitment to maximizing the value of Uganda’s petroleum resources while delivering clean and affordable energy solutions for Ugandans.”
“The EPAA will facilitate critical early-stage planning and design work to unlock LPG opportunities from the upstream.”
She noted that 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.
Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda, noted that the partnership positions Vivo Energy to support Uganda’s clean energy transition by ensuring reliable, safe and affordable LPG storage and distribution.
“Vivo Energy Uganda remains committed to supporting the government’s initiative to modernise energy infrastructure and promote the safe use of LPG as a clean cooking alternative.”
She added, “This project will immediately begin to unlock the benefits of Uganda’s LPG reserves.”
Hans Paulsen, Executive Vice President East of Vivo Energy, emphasised the regional significance of the partnership.
“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.”
He added: “Uganda’s LPG reserves offer a real opportunity to meet domestic needs, drive industrialisation, and serve regional markets and we are proud to be a part of that journey. We thank UNOC and the Ministry of Energy for their trust and collaboration.”
Nimit Shah, Chief Financial Officer of the Vivo Energy Group, noted the strategic alignment of this project with a broader pan-African commitment.
“This partnership is part of the 550 million US dollar investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa.”
Adding, “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 project focuses on constructing LPG storage tanks, handling and cylinder filling equipment, and infrastructure aligned with the broader facilities at Kabalega Industrial Park a site under UNOC management, designed to host Uganda’s oil export hub and international airport.
The execution of this project will commence following today’s signing.
Technical design and site preparation will advance through coordination with the Kabalega Industrial Park masterplan and ongoing infrastructure works many of which are already in advanced stages of development.
This initiative is part of UNOC’s continuing oil and gas infrastructure development, including the Jinja Storage Terminal and future bulk storage facilities, all contributing to Uganda’s energy security and sector transformation.