Jinja, Uganda – The Jinja fuel storage facility is set to play a crucial role in securing Uganda’s fuel reserves. This initiative aims to safeguard against potential disruptions in the supply chains from Kenya and Tanzania, ensuring a steady fuel supply across the country.
The development follows the Uganda National Oil Company’s (UNOC) recent mandate to solely import and supply all petroleum products in Uganda. This responsibility is part of the Petroleum Supply (Amendment) Act 2023.
UNOC has highlighted the importance of this facility, stating that the bulk of the fuel stocks at the Jinja Storage Terminal (JST) will be duty-unpaid and primarily supplied through Tanzania. These stocks will be sold by UNOC to Oil Marketing Companies (OMCs) that have signed the Supply and Purchase Agreement (SPA) and participate in monthly demand commitments.
First Consignment Arrives in Mombasa
On Tuesday, UNOC received its first consignment of fuel imports at the Mombasa port in Kenya. The shipment, arriving from Jebel-Ali in the United Arab Emirates (UAE), contained 58,000 metric tonnes of petrol. Another ship from Kuwait is expected to deliver 80,000 metric tonnes of diesel on Thursday. The fuel will be discharged into the Kenya Pipeline Company infrastructure, delivering it to Eldoret, Kisumu, and Nakuru in Kenya, with the expectation of reaching the Ugandan market next week.
Partnership with Oil Marketing Companies
In early June, UNOC finalized purchase and sales agreements with various oil marketing companies, allowing the government agency to supply petroleum products to them. By the beginning of July, up to 80 oil marketing companies had entered into partnerships with UNOC. This collaboration is facilitated through Supply and Purchase Agreements, enabling OMCs to forward their demand by placing orders with UNOC.
Ensuring Fuel Security
In its new role, UNOC is tasked with ensuring a secure supply of petroleum products into Uganda. The country consumes at least seven million liters of fuel daily, with an annual growth rate of 7-9%. Although UNOC will prioritize the Kenya route for fuel imports, it also plans to maintain the Tanzania route actively.
UNOC has committed to sharing out endorsed volumes through Tanzania proportionately to all participating oil marketing companies. Further considerations may be given to OMCs that have invested in Tanzania, ensuring a balanced and secure supply chain.
Highlights
| Aspect | Details |
|---|---|
| Facility Location | Jinja, Uganda |
| Initial Fuel Shipment | 58,000 metric tonnes of petrol from Jebel-Ali, UAE |
| Upcoming Shipment | 80,000 metric tonnes of diesel from Kuwait |
| Fuel Import Routes | Primarily through Kenya, with active maintenance of the Tanzania route |
| Daily Fuel Consumption in Uganda | 7 million liters |
| Annual Growth Rate | 7-9% |
| OMCs in Partnership | 80 oil marketing companies |
| Regulatory Framework | Petroleum Supply (Amendment) Act 2023 |
| Main Storage Location | Jinja Storage Terminal (JST) |
UNOC announced on its online platforms that the establishment of the Jinja fuel storage facility underscore Uganda’s efforts to enhance its energy security and stabilize its fuel supply in the face of potential disruptions.
