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Uganda is set to produce 100,000kg of liquified petroleum gas (LPG) annually at the peak of commercial oil production from the Albertine Graben.

Liquefied petroleum gas (LPG) is a mixture of the liquefied gases of propane and butane. It is obtained from natural gas or petroleum. LPG is liquefied for transport and then vaporised for use as a heating fuel, cooking in homes, engine fuel or as a feedstock in the petrochemical or chemical industries.

Alex Nyombi, the director developments and production at the Petroleum Authority of Uganda, said on Wednesday that the kingfisher Oil Development project in Kikuube district, which is being operated by China National Offshore Oil Company, is expected to produce 20,000 metric tonnes of gas, while the Tilenga Oil Development project, which is operated by TotalEnergies, is expected to produce 80,000 metric tonnes.

“Currently in Uganda, we can only consume about 20,000 metric tonnes of LPG annually, so we shall have surplus gas, In Uganda according to our places we cannot burn our gas. These companies carrying out the oil developments will also work on the gas project,” Nyombi said.

According to Nyombi, LPG will be processed from the crude oil refining.

“When natural gas is produced, it contains methane and other light hydrocarbons that are separated in a gas-processing plant,” he said.

The natural gas liquid components recovered during processing include ethane, propane and butane, as well as heavier hydrocarbons. Propane and butane, along with other gases, are also produced during crude refining as a by-product of the processes that rearrange and/or break down molecular structure to obtain more desirable petroleum compounds.

Nyombi said the gas which will be produced from the crude oil will be consumed locally and the rest of the government will advise on how it will be used.

Nyombi said with the current oil discoveries, Uganda is able to produce oil for over 25 years, but more explorations are being conducted by some companies which have acquired exploration licences in other parts of the country.

He said at Kingfisher, four wells have been successfully drilled and drilling of the fifth well had also commenced.

“At Kingfisher we have 31 wells and the rig has been shifted to the fifth well which is currently being drilled after completing the four wells,” Nyombi said.

Finance minister Matia Kasaija, who toured the Kingfisher oil development area on Wednesday, said the Government will encourage people to use gas as one way of saving the environment from degradation.

“We shall encourage our people and institutions to use the gas and then we shall export the rest of the gas to other countries. It will help us to solve the problem of environmental degradation because we have lost many forests as people are seeking wood for fuel,” he said.

Kasaija said the Government will encourage the utilisation of gas by subsidising the prices so that it can be affordable.

The finance minister said the use of LPG can protect forests from being depleted for charcoal and firewood production and use, hence contributing to preserving the environment and capturing carbon dioxide emissions.

Kasaija said the Government was optimistic that Uganda will have its oil out by 2025 because all the necessary infrastructure has been put in place.

He also said the Government was in final preparations of tarmacking the 57km Kyangwali-Kabwoya Road which connects to the Kingfisher Oil Development area.

“The loan agreement is currently before Parliament waiting for approval and after that, we shall release the money to Uganda National Roads Authority (UNRA) so that they can secure a contractor to work on the road and ease transport,” Kasaija said.

“Everything is being done by the Government for the refinery we have already identified the investor and we are still discussing. But I am sure we are on course, all those intending to sabotage our oil and gas development projects should be warned we shall not accept that,” he added.

This article first appeared in Sunday Vision edition of December 24, 2023.