Tamoil gets land for giant fuel reservoir
Feb 15, 2009
THE Government has secured land to set up a giant fuel reservoir near Kampala to serve Uganda, Rwanda and Burundi.
By Raymond Baguma
THE Government has secured land to set up a giant fuel reservoir near Kampala to serve Uganda, Rwanda and Burundi.
Libyan oil company Tamoil is to construct the Kampala Oil Products Terminal and the Eldoret-Kampala oil pipeline extension project at $ 250m.
Work on the terminal and pipeline is expected to start in April after the Government handed over the land to Tamoil officials during a ceremony on Wednesday.
Ben Twodo, the commissioner for petroleum in the ministry of energy and mineral development, said work had been pending since 2007 due to a land ownership wrangle.
However, the disputing sides, Mulowooza and Brothers Ltd and N Shana Company Ltd signed a Memorandum of Understanding with the Government that okayed the developments on the land.
The Tamoil Uganda chairman, Habib Kagimu, said the oil pipeline would end at the terminal before it could be extended to Rwanda and Burundi, once the feasibility studies were concluded.
Kagimu said when completed, the cost of transporting fuel from Kenya into Uganda would reduce, thus lowered fuel prices.
The land located at Namwabula in Mawokoota County, Mpigi district, is 360 kilometres from Eldoret and measures 1 square mile.
Ahmed Elgembri, the Tamoil East Africa project manager said the terminal would have 24 installed reservoir tanks an optimum capacity of 160m litres of oil products.
Works to level the site commence on April 15 for 15 months.
THE Government has secured land to set up a giant fuel reservoir near Kampala to serve Uganda, Rwanda and Burundi.
Libyan oil company Tamoil is to construct the Kampala Oil Products Terminal and the Eldoret-Kampala oil pipeline extension project at $ 250m.
Work on the terminal and pipeline is expected to start in April after the Government handed over the land to Tamoil officials during a ceremony on Wednesday.
Ben Twodo, the commissioner for petroleum in the ministry of energy and mineral development, said work had been pending since 2007 due to a land ownership wrangle.
However, the disputing sides, Mulowooza and Brothers Ltd and N Shana Company Ltd signed a Memorandum of Understanding with the Government that okayed the developments on the land.
The Tamoil Uganda chairman, Habib Kagimu, said the oil pipeline would end at the terminal before it could be extended to Rwanda and Burundi, once the feasibility studies were concluded.
Kagimu said when completed, the cost of transporting fuel from Kenya into Uganda would reduce, thus lowered fuel prices.
The land located at Namwabula in Mawokoota County, Mpigi district, is 360 kilometres from Eldoret and measures 1 square mile.
Ahmed Elgembri, the Tamoil East Africa project manager said the terminal would have 24 installed reservoir tanks an optimum capacity of 160m litres of oil products.
Works to level the site commence on April 15 for 15 months.