UNOC Seeks USh 550 Billion for New Fuel Storage Terminal

The Uganda National Oil Company (UNOC) has unveiled plans for a new fuel storage facility expected to cost over 550 billion Shillings (USD 140 million) in its first phase. The facility, situated in Buloba, is designed to accommodate up to 320 million liters of fuel, serving both as a government reserve and a storage facility for oil marketing companies.

Proscovia Nabbanja, UNOC’s Chief Executive Officer, shared updates on the project’s progress during a briefing with journalists at the State House Investors’ Protection Unit offices in Kampala. She noted that the project is currently undergoing works, with the environmental social impact assessment (ESIA) completed and the procurement of strategic partners underway.

Currently, the reserves contain only 6 million liters as security stock, which Nabbanja highlighted may vary depending on consumption patterns. Additionally, plans are in place to enhance the operational efficiency of the old terminal in Jinja by connecting it to the lake through a pipeline.

Nabbanja emphasized that the new terminal will be developed in phases to receive fuel from Uganda’s refinery while serving various other purposes. UNOC’s role as the sole importer of petroleum products for the country, as stipulated by the amended Petroleum Supply Act, is aimed at managing pump prices, ensuring supply security, and generating income for the agency.

Addressing legal challenges regarding UNOC’s role, Peter Muliisa, the head of UNOC’s legal team, mentioned ongoing litigation in Kenya. Despite legal hurdles, progress continues on the East Africa Crude Oil Pipeline, with civil works underway and significant land acquisitions and compensations already completed in Uganda and Tanzania.