Cabinet has approved the application for a license to construct the liquified petroleum gas facility by China National Offshore Oil Corporation (CNOOC) Uganda Limited, in the King Fisher Development Area.

The announcement was made on December 20, 2023, at the Uganda Media Center in Kampala, during a press briefing addressed by the state minister for ICT and National Guidance Godfrey Baluku Kabbyanga.

CNOOC Uganda Limited was granted a production licence by the Government’s Ministry of Energy and Mineral Development to develop the kingfisher oil block among other prospects which are geared towards ensuring that production of oil and gas commences within the stipulated time frames.

The Kingfisher facility struck a considerable volume of associated gas which CNOOC would like to convert to liquified petroleum gas for commercial purposes within the country and its immediate neighbourhoods.

Eng. Geoffrey Ogwang, the commissioner petroleum department, at the Ministry of Energy and Mineral Development, said Uganda imports liquified petroleum gas from Arab oil producing countries through the Organisation of the Petroleum Exporting Countries.

Currently, Uganda consumes about 20 metric-tonnes of liquified petroleum gas annually. However, Uganda uses mainly biogas.

“Once we produce gas, it will increase access with improved balance of payment position because it impacts on income and economics,” Ogwang said.

He said they expect the facility to continue operating as Uganda is set to produce its first oil in 2025.

On December 12, this year, the East African Crude Oil Pipeline (EACOP) announced the arrival of the first shipment of 100km of line pipe, signalling the initiation of the main construction phase for the cross-border pipeline project.

EACOP will transport crude oil from the Albertine region in Uganda to the Chongoleani peninsula near Tanga in Tanzania, where it will access world markets. The project represents a major inward investment in the two countries.

During the recent National Content Conference, Merian Ahabwe, Petroleum Authority of Uganda (PAU) national content manager reported that 98% of the workforce contributing to EACOP’s success are Ugandans, with 51% hailing from local communities in the Albertine region.

EACOP collaborates with 117 Ugandan companies, and there are plans for further expansion in the coming year, according to PAU.