Vivo Energy Uganda and the Uganda National Oil Company (UNOC) have officially signed an agreement to develop a large-scale LPG storage facility. This will be at the Kabalega Industrial Park in Kabaale, Hoima District. This strategic collaboration marks a major step in expanding Uganda’s energy infrastructure.
What the Deal Entails
According to the partnership Vivo Energy and UNOC are designated as co-developers of a Liquefied Petroleum Gas (LPG) storage hub. This hub will located within the 29.57 km² Kabalega Industrial Park. UNOC, which has overseen the development of the park since 2018, brings national leadership and infrastructure oversight. On the other hand Vivo will supply commercial and technical expertise in fuel distribution and storage.
Why This Matters for Uganda
- Energy Security & Diversification: By this joint venture, Uganda aims to reduce fuel import dependence by building local storage and refining capacity within the park, including LPG production and distribution.
- Industrial Hub Growth: As part of a bigger strategy, this storage hub will support activities in petrochemicals, fertilizer production, agro-processing, and logistics. These are integral features of the park’s master plan.
- Economic Impact: Additionally, once fully operational, the Kabalega Industrial Park is projected to contribute USD 4.9 billion annually to GDP. It will also create up to 35,000 jobs plus improving national export and revenue performance.
Infrastructure and Timeline
Key infrastructure milestones are already underway:
* Airport: Kabalega International Airport is about 95% complete. It’s projected to open by late 2025 .
* Utilities & Access: Design phases for roads, perimeter fencing, water, power, and wastewater systems are also underway. Construction will continue through 2024 and into 2025.
* Refinery & Storage: Parallel projects include a USh 4 billion refinery with 60,000 barrels/day capacity and additional petroleum storage terminals in Mpigi and Jinja.
Strategic Outlook
The LPG hub will integrate with Uganda’s oil value chain, including the East African Crude Oil Pipeline (EACOP) and the country’s emerging refining capacity. The goal is to create a resilient, value-added energy ecosystem centered around local processing and export readiness.
This partnership between Vivo Energy and UNOC highlights Uganda’s firm ambition to industrialize and build local energy capacity. The LPG storage hub is not just infrastructure—it’s a foundation for jobs, investments, and economic transformation in the Albertine region and beyond.
