The Ugandan government has signed a landmark Supply and Purchase Agreement with Global Gases Group to establish a Liquefied Petroleum Gas (LPG) storage facility and cylinder manufacturing and filling plants in Luzira.
This initiative is part of the country’s broader push to reduce reliance on biomass for cooking and to promote clean energy. The project, expected to be operational by 2026, marks a significant step toward increasing the usage of LPG across Uganda and the wider East African Community (EAC).
Presiding over the agreement signing at the Petroleum Authority of Uganda’s offices in Entebbe, Dr. Ruth Nankabirwa Ssentamu, Uganda’s Minister of Energy and Mineral Development, underscored the environmental and economic importance of transitioning to LPG for cooking.
She highlighted that while LPG is the clean cooking energy of choice, its adoption in Uganda has remained limited due to inadequate infrastructure, low volumes, and restricted access, particularly in rural areas.
“Global Gases Group will invest, construct, own, and operate an LPG cylinder manufacturing plant, cylinder filling stations, and distribution centers in different locations across the country,” Nankabirwa said.
She added that the current household-level LPG usage stands at less than 1%, primarily in urban areas, while many families still rely on charcoal and firewood. “This is an opportunity for all households in Uganda to embrace clean cooking and save the environment. The current price of charcoal is much higher than the use of gas,” she noted, emphasizing that this shift is essential for reducing deforestation and improving public health.
The Minister also pointed out that Uganda’s Third National Development Plan (2020/21–2024/25) under the Sustainable Energy Development Programme commits the government to reducing biomass energy used for cooking from 88% in the FY 2018/19 to 50%. The Plan further aims to increase the share of clean energy used for cooking to 50% by 2024/25, signaling a clear pathway toward Uganda’s energy transition goals.
Under the agreement, Global Gases Group will produce 500,000 LPG cylinders annually for Ugandan consumers, in sizes of 3kg, 6kg, and 12kg. Over the next 20 years, the facility will also produce an additional two million cylinders for the East African Community market. The government plans to initially distribute the cylinders through petrol stations, with regional distribution offices to follow, ensuring that clean cooking solutions are accessible nationwide.
Eng. Irene Pauline Bateebe, Permanent Secretary of the Ministry of Energy and Mineral Development, welcomed the investment as a critical step in addressing the environmental challenges posed by traditional biomass usage.
“This investment will help mitigate climate change impacts and promote clean energy cooking nationwide. It is a necessary response to the low per capita energy consumption and overreliance on biomass by over 80% of Uganda’s population,” she explained.
Bateebe stressed the need to rapidly scale up LPG adoption, pointing out that Uganda lags behind its regional counterparts in LPG consumption. Currently, Uganda consumes around 35,000 tons of LPG annually, compared to Kenya’s 350,000 tons and Tanzania’s 250,000 tons. “There is a significant opportunity to increase LPG uptake and reduce reliance on wood fuels, which have serious implications for our forests and health,” she said.
In line with the government’s strategy, this investment will not only increase LPG access but also contribute to Uganda’s Energy Transition Plan (ETP), a roadmap aimed at modernizing the energy sector and supporting sustainable economic growth.
Uganda officially launched its ETP at the 2023 United Nations Climate Change Conference (COP28) in Dubai, aligning with global efforts to combat climate change.
Deepak Mehta, Founder and CEO of Global Gases Group, expressed his company’s commitment to supporting Uganda’s energy goals. “We are excited to be part of Uganda’s journey toward a cleaner energy future. In addition to our work in producing oxygen gas for hospitals, we are also starting biogas and fertilizer production from cow dung in Mbarara City. This LPG infrastructure will be a game-changer for the country’s clean energy adoption,” Mehta stated.
He further explained that the partnership with the government, which began in 2022, will significantly reduce tree-cutting and promote clean cooking technologies. “The establishment of this infrastructure will not only benefit Ugandan consumers but will also have a broader regional impact, enabling the entire East African Community to embrace clean cooking solutions,” Mehta added.
The government has already laid the groundwork for increasing LPG use, with a pilot project launched in July 2022, distributing LPG starter kits to over one million beneficiaries in Buggu-Zone, Busabala Parish, and Makindye Ssaabagabo.
This project is part of a broader effort to address the pressing environmental and health concerns associated with biomass usage and is designed to reach households across Uganda.
LPG is widely recognized for its cleanliness, affordability, efficiency, and sustainability, making it an ideal energy source for both households and industries. As Uganda continues to urbanize and develop, initiatives like the Luzira LPG facility are vital in ensuring a cleaner, healthier, and more sustainable future.
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