Vivo Energy, UNOC partner to develop LPG storage hub

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In a move aimed at boosting the number of households using Liquefied Petroleum Gas (LPG), Vivo Energy Uganda Tuesday, July 29, sealed a partnership with Uganda National Oil Company (UNOC), on behalf of the Ministry of Energy and Mineral Development, to develop a Liquefied Petroleum Gas (LPG) storage facility at Kabalega Industrial Park.

Speaking during the signing ceremony, Joanita Mukasa Menya, managing director of Vivo Energy Uganda, said the partnership will go a long way in supporting Uganda’s clean energy transition agenda by ensuring reliable, safe and affordable LPG storage and distribution.

She explained that 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.

 “This project will immediately begin to unlock the benefits of Uganda’s LPG reserves. Our shared goal is to increase the local adoption and use of LPG, not only for domestic cooking but also to power small businesses, institutions, and industrial operations, while also positioning Uganda as a potential exporter of clean energy solutions in the region,” she added.

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.

Following the 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.

“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,” Proscovia Nabbanja, CEO, UNOC noted.

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 reducing dependence on biomass fuels, thereby protecting forests and improving public health.

 Nimit Shah, Chief Financial Officer of the Vivo Energy Group, disclosed that the partnership is part of the $550m investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa.

“The commitment supports LPG infrastructure development, safe cylinder distribution, and clean cooking projects in our African markets. 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.”