Uganda has officially broken ground on a landmark energy infrastructure project, initiating construction on a massive 320-million-liter petroleum storage terminal located in the central district of Mpigi. The ambitious initiative is designed to drastically strengthen the nation’s fuel security while ensuring reliable supply chains for both domestic consumers and wider regional markets.
President Yoweri Museveni presided over the high-profile groundbreaking ceremony for the multi-million-dollar project on September 17. Developed under the stewardship of the state-owned Uganda National Oil Company (UNOC), the Kampala Storage Terminal represents a capital investment exceeding 300 million dollars.
According to an official statement issued by State House, the monumental facility will more than double Uganda’s current estimated petroleum storage capacity, which currently stands at roughly 160 million liters. Energy sector authorities emphasize that this massive expansion is a vital step forward as the country moves closer to fully harnessing its domestic petroleum resources and minimizing vulnerabilities associated with regional supply chain disruptions.
Speaking at the inaugural ceremony, President Museveni highlighted the strategic necessity of investing heavily in robust downstream and midstream infrastructure alongside upstream development. “Now that we are moving well on developing our resources, we must plan for storage,” Museveni stated, underscoring the government’s commitment to ensuring long-term economic stability and energy independence.
Echoing the President’s sentiments, Uganda’s Minister of Energy and Mineral Development, Monica Musenero, elaborated on the broader economic implications of the terminal. She noted that the facility will function as a pivotal strategic storage hub, effectively mitigating fuel supply bottlenecks and cementing Uganda’s position as a key energy transit and supply node within East Africa.
With the official groundbreaking now complete, the pressure shifts to execution and timeline adherence. State-owned UNOC has made a firm commitment to fast-track the development, pledging to complete construction and fully commission the expansive Mpigi terminal within a strict 24-month window. Once operational, the facility is expected to transform the national energy landscape, providing a reliable buffer against global market price shocks and fuel shortages.
