In ground breaking development move aimed at transforming Uganda’s energy sector, Vivo Energy Uganda and the Uganda National Oil Company (UNOC), representing the Ministry of Energy and Mineral Development, have signed a pivotal agreement to develop major Liquefied Petroleum Gas (LPG) infrastructure at Kabalega Industrial Park in Hoima.
The agreement sets the stage for the establishment of Uganda’s largest LPG storage and distribution hub, positioning the country to significantly improve access to clean cooking fuels, reduce dependence on biomass, and boost energy security. The hub will include large-scale LPG storage tanks, handling systems, and cylinder filling equipment.
“This is a day to celebrate a major milestone,” said Proscovia Nabbanja, Chief Executive Officer of UNOC. “The early project activities agreement outlines the framework for essential technical activities that will inform our final investment decision. It’s a key step toward forming a joint venture company that will drive this initiative forward.”
Located within Uganda’s oil export hub and near the future international airport, Kabalega Industrial Park is poised to become a central point for the country’s energy infrastructure. The new LPG facility will integrate supply from upstream production sites such as Kingfisher and Tilenga, facilitating a nationwide shift toward cleaner energy.
Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda, welcomed the agreement as a symbol of effective public-private collaboration.
“This partnership demonstrates what is possible when government and the private sector unite under a shared vision,” she said. “With over 70 years of heritage in Uganda, Vivo Energy remains committed to fueling the country’s growth with safe and accessible energy solutions.”
Hans Paulsen, Executive Vice President East of Vivo Energy, emphasized the regional implications of the project. “This development marks a significant shift in Uganda’s energy landscape and complements similar efforts across Africa, in countries like Namibia, Réunion, and Mayotte,” he noted.
The LPG hub is also part of a wider $550 million investment pledge by Vitol and Vivo Energy, announced at the 2024 Summit on Clean Cooking in Africa.
“Our commitment includes LPG infrastructure development, safe cylinder distribution, and clean cooking initiatives,” added Nimit Shah, Chief Financial Officer of Vivo Energy Group. “So far, Vitol has helped over 10 million households across Africa access clean cooking. We are proud to have Uganda as a key part of this journey.”
Construction of the new LPG facility is set to begin immediately, with technical design and site preparation already aligned with the Kabalega Industrial Park master plan. The project is expected to create local jobs, enhance national content, and accelerate the transition to clean energy while preserving Uganda’s forests and improving public health.