Vivo Energy Uganda and the Uganda National Oil Company (UNOC), on behalf of the Ministry of Energy and Mineral Development, have formalized a transformative partnership to develop Liquefied Petroleum Gas (LPG) storage and distribution infrastructure at Kabalega Industrial Park in Hoima District.
The groundbreaking agreement, signed today, marks a major stride in Uganda’s transition to cleaner energy solutions, aligning with the government’s strategic shift from traditional biomass to LPG for domestic and industrial use.
Proscovia Nabbanja, CEO of UNOC, emphasized the initiative’s alignment with Uganda’s energy access goals:
“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.”
She added that the development fits into UNOC’s broader strategy to integrate Uganda’s upstream gas production with local consumption, especially as demand for LPG rises both domestically and regionally.
Joanita Mukasa Menya, managing director of Vivo Energy Uganda, described the collaboration as a landmark in the country’s energy transformation:
“Partnering with UNOC on this LPG project positions Vivo Energy to support Uganda’s clean energy transition by ensuring reliable, safe, and affordable LPG storage and distribution.”
She noted that the project is designed to not only support household cooking needs but also power small businesses and industrial activities. Menya added that the infrastructure would position Uganda as a future exporter of clean energy within the East African region.
The LPG facility will feature bulk storage tanks, cylinder filling and handling systems, and will be integrated into the master plan of Kabalega Industrial Park, which is also home to Uganda’s planned oil export hub and international airport.
Hans Paulsen, Vivo Energy’s Executive Vice President for the East region, hailed the move as part of a continent-wide energy shift:
“This development in Uganda complements similar LPG infrastructure investments in Namibia, Réunion, and Mayotte. It’s a clear demonstration that public-private partnerships can accelerate Africa’s clean energy transition.”
Vivo Energy Group’s Chief Financial Officer, Nimit Shah, framed the initiative within a broader pan-African investment pledge.
“This project is part of a $550 million clean cooking investment commitment made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa,” Shah said. “We are proud to see Uganda playing a key role in expanding access to clean cooking for millions more households.”
Construction will commence immediately, beginning with technical design and site preparation. The project is expected to generate local employment, strengthen national content, and contribute to long-term industrial development in Hoima and beyond.
This effort builds on UNOC’s expanding infrastructure footprint, including the Jinja Storage Terminal and future national bulk fuel storage facilities — key to ensuring Uganda’s energy security and resilience.
By increasing access to LPG, the partnership is expected to curb deforestation, reduce indoor air pollution, and improve public health, while positioning Uganda as a leader in clean energy innovation within the region.
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