President Yoweri Museveni has officially broken ground for the construction of a 320-million-litre Kampala Storage Terminal in Mpigi District.
He described the project as a major step towards strengthening Uganda’s petroleum security and its ability to supply fuel to both domestic and regional markets.
The terminal, being developed by the Uganda National Oil Company (UNOC), will sit on 300 acres of land and is expected to cost about USD 250 million.
It is designed to expand the country’s capacity to store refined petroleum products and build strategic fuel reserves.
Uganda currently has an estimated national petroleum storage capacity of 160 million litres. This includes a 30-million-litre facility in Jinja, a 70-million-litre facility at Mahathi in Kawuku, and roughly 60 million litres operated by private fuel companies.
President Museveni said adequate storage infrastructure is essential as Uganda continues developing its petroleum sector and seeks greater security of fuel supply.
He recalled that after the NRM took power in 1986, the government discovered Uganda was purchasing petroleum products through middlemen in Kenya—an issue brought to his attention by a Kenyan senator.
The government later intervened with measures that reduced the cost of fuel products.
He cited reductions in the price of diesel from USD 118 to USD 83 per metric tonne, petrol from USD 97.5 to USD 61.5, and aviation fuel from USD 114.25 to USD 79.25 per metric tonne.
“Now that we are moving well on developing our resources, we must plan for storage,” the President said, noting that existing capacity remains insufficient for the country’s needs.
He stressed that the new terminal should not be seen as the final answer and that Uganda must continue planning for larger facilities to meet long-term requirements.
Museveni commended Vitol Bahrain for supporting Uganda’s fuel supply chain, including supplying products on credit.
He also welcomed closer cooperation among East African countries in the petroleum sector and confirmed Uganda’s participation in the development of a larger refinery in Tanga, Tanzania.
The President praised the people of Mpigi for preserving papyrus wetlands he observed on the way to the site and urged communities to protect wetlands and other natural ecosystems.
He also expressed concern about a garbage dumping site located near the planned terminal, describing it as dangerous and calling for its relocation, suggesting incineration as one alternative that could also generate electricity.
UNOC Board Chairman Mathias Katamba described the project as a major milestone that will help position Uganda as a regional hub for petroleum products.
He said UNOC has secured all necessary government and local authority permits, as well as a petroleum facility construction permit from the Ministry of Energy and Mineral Development.
The Engineering, Procurement and Construction (EPC) contract becomes effective on 18 September 2026, with site works expected to begin immediately after the groundbreaking.
Detailed engineering is scheduled for completion by March 2027, and the terminal is expected to be commissioned within 24 months—around September 2028.
Minister of Energy and Mineral Development Dr Monica Musenero said the facility will serve as a strategic storage hub critical to strengthening Uganda’s petroleum supply chain.
She welcomed UNOC’s commitment to complete the project within two years and pledged the ministry’s support. She also called for improved road links, particularly to the Mpigi Expressway, and the development of railway connectivity for more efficient transport of petroleum products.
Permanent Secretary Eng. Irene Batebe noted that the terminal will significantly boost Uganda’s ability to maintain strategic petroleum stocks and respond to supply disruptions.
She added that the government is also working to expand other facilities, including the Jinja Storage Terminal.
Once completed, the Kampala Storage Terminal is expected to enhance Uganda’s strategic reserves, reduce vulnerability to supply interruptions, and improve the distribution of refined petroleum products across domestic and regional markets.
