President Museveni Breaks Ground for 320 Million-Litre Fuel Storage Terminal in Mpigi
NATIONAL
Mpigi,Uganda | President Yoweri Kaguta Museveni has inaugurated the development of a substantial petroleum storage facility in Mpigi District, calling the initiative an important advancement in enhancing Uganda’s fuel security and increasing its ability to cater to both local and regional markets.
The President presided over the groundbreaking ceremony for the 320-million-litre Kampala Storage Terminal, a project being developed by the Uganda National Oil Company (UNOC) on approximately 300 acres of land.
The facility is estimated to cost about US$250 million and is expected to substantially increase Uganda’s ability to store refined petroleum products while providing additional capacity for strategic fuel reserves.
Uganda’s current petroleum storage capacity is estimated at about 160 million litres. This includes a 30-million-litre facility in Jinja, a 70-million-litre facility at Mahathi in Kawuku and approximately 60 million litres held by private-sector fuel companies.
Museveni said expanding storage infrastructure is essential as Uganda develops its petroleum industry and seeks to reduce vulnerabilities in fuel supply.
He also highlighted government interventions aimed at reducing petroleum costs, citing reductions in the price of diesel from US$118 to US$83 per metric tonne, petrol from US$97.5 to US$61.5, and aviation fuel from US$114.25 to US$79.25 per metric tonne.
According to the President, the new terminal will improve the reliability of fuel supplies and enable Uganda to maintain strategic reserves. However, he cautioned that the facility should not be considered the final answer to the country’s petroleum storage requirements.
Museveni said Uganda will need to plan for even larger storage facilities in the future as fuel demand grows.
The President also commended Vitol Bahrain for supporting Uganda’s petroleum supply chain, including supplying fuel products on credit while government payments are made when funds become available.
He further welcomed regional cooperation in the petroleum sector, saying Uganda intends to participate in the development of a larger refinery in Tanga, Tanzania, as part of broader East African efforts to strengthen energy security.
During his visit, Museveni praised communities in Mpigi for protecting papyrus wetlands observed along the route to the project site, urging residents to safeguard wetlands and other natural ecosystems.
The President, however, expressed concern over the presence of a garbage dumping site near the planned petroleum storage facility, warning that its proximity could pose serious safety risks.
He directed that the dumping site be relocated to ensure that the petroleum facility operates in a safer environment.
