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KAMPALA - The Government has handed over a licence to CNOOC Uganda Ltd to construct the Kingfisher Natural Gas Conversion Facility in Kikuube District. (Photo by John Odyek)

Ruth Nankabirwa, the Minister for Energy and Mineral Development, handed over the licence to Ma Peixin, the vice president of CNOOC Uganda Ltd, on Tuesday, January 23. The function took place at the minister’s boardroom in Amber House, Kampala. 

This marks a major milestone in Uganda’s journey to produce gas. The license is for a period of five years and the company is expected to produce over 20,000 tonnes annually at its peak. 

Nankabirwa said that they expect the company to start producing cooking gas at the same period that oil production starts. 

The minister explained the issuance of the licence was in accordance with the Petroleum (Refining, Conversion, Transmission, and Midstream Storage) Act, 2013. The operations require the acquisition of a licence which entails the construction of a facility as well as the operation activities. 

“Our commitment to Liquefied Petroleum Gas usage at the household level is unwavering. Last year, we distributed 13,733 LPG Starter Kits in Kampala, Mukono, and Wakiso, and we aim to reach 50,000 households across all cities in the 2024/2025 financial year,” the minister explained. 

“With an annual growth rate of 9% in LPG usage, we continue to support this green initiative by exempting LPG from taxes, encouraging wider adoption across Uganda,” Nankabirwa added. 

She said the production of gas would prevent the burning of gas, a practice that is harmful to the environment. 

In relation to this, the production of gas will support the transition from cooking using charcoal to using cooking gas. 

Peixin said the project expresses the good relations between Uganda and China. He said they will execute the project with high quality and excellence.