KAMPALA, Uganda — Vivo Energy Uganda and the Uganda National Oil Company (UNOC) have officially partnered to develop a major liquefied petroleum gas (LPG) storage hub at Kabalega Industrial Park in Hoima. This strategic collaboration not only aims to boost Uganda’s domestic clean energy access but also positions the nation as a potential player in the regional energy market.
The agreement supports UNOC’s broader mandate to integrate upstream gas production with local consumption, significantly scaling up infrastructure to meet anticipated increases in both Ugandan and regional LPG demand.
This partnership is set to establish crucial LPG storage and filling capacity, directly linking to Uganda’s upstream production projects. Officials expect it to greatly improve access to clean cooking fuels across the country, aligning with ongoing campaigns to reduce dependence on biomass and, in turn, protect forests and improve public health. Beyond environmental benefits, the project is also slated to stimulate economic growth, create local jobs, and strengthen local content in Hoima and surrounding areas.
“This partnership with Vivo Energy Uganda reflects our shared commitment to investing in cleaner energy solutions and advancing Uganda’s industrial development goals,” stated Proscovia Nabbanja, CEO of UNOC, following the signing on behalf of the Ugandan government. “The LPG storage infrastructure project in Hoima is a strategic intervention that will improve energy access and affordability for households, institutions, and businesses across the country.”
Joanita Mukasa Menya, managing director of Vivo Energy Uganda, emphasized the project’s pivotal role in Uganda’s energy transition. “Partnering with UNOC on this LPG storage project positions Vivo Energy to support Uganda’s clean energy transition by ensuring reliable, safe and affordable LPG storage and distribution,” she said. “Our shared goal is to increase the local adoption and use of LPG — not only for domestic cooking but also to power small businesses, institutions, and industrial operations — while also positioning Uganda as a potential exporter of clean energy solutions in the region.”
Hans Paulsen, executive vice president East of Vivo Energy, highlighted the regional implications. “The development of LPG infrastructure at Kabalega Industrial Park represents a fundamental shift in our energy landscape,” he explained. “This initiative in Uganda is part of a broader regional momentum as it complements similar efforts in Namibia, Reunion, and Mayotte, showcasing how public-private partnerships can accelerate Africa’s clean energy transition.”
Nimit Shah, chief financial officer of the Vivo Energy Group, connected the project to a larger continental commitment. “This partnership is part of the $550 million investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa,” Shah noted. “That commitment supports LPG infrastructure development, safe cylinder distribution, and clean cooking projects in our African markets. We are proud that Uganda is now a key part of this journey.”
The project will involve building state-of-the-art LPG storage tanks, handling, and cylinder filling equipment, all integrated with the broader Kabalega Industrial Park masterplan. This park, managed by UNOC, is also earmarked to host Uganda’s oil export hub and an international airport, underscoring the strategic importance of the new LPG facility.
Execution of the project will commence immediately, with technical design and site preparation aligning with ongoing infrastructure works already well underway at the park. This initiative further solidifies UNOC’s continuous efforts in oil and gas infrastructure development, contributing significantly to Uganda’s energy security and sector transformation.
