Uganda has started the construction of an oil storage facility with a capacity of 320 million liters in the Mpigi central district. This step is aimed at strengthening the country's fuel security and ensuring supplies for both domestic and regional markets.
President Yoweri Museveni participated in the foundation-laying ceremony for the Kampala Storage Terminal, valued at over $300 million. The project is being implemented by the state-owned company Uganda National Oil Company (UNOC).
According to the State House statement, this facility will allow for an increase in Uganda's current estimated oil storage capacity, which stands at 160 million liters, by more than double.
Museveni emphasized that expanding storage infrastructure is crucial in the development process of Uganda's oil and gas sector and in the effort to improve the reliability and efficiency of fuel supplies. He noted: 'Now that we are actively developing our resources, we must plan for storage.'
The Minister of Energy and Mineral Development, Monica Musenero, reported that the new storage facility will become a strategic hub for storage and will strengthen the country's oil supply chain. UNOC has committed to completing the project within 24 months.