UNOC and Vivo Energy forge landmark partnership to revolutionize Uganda’s LPG sector
The widespread use of charcoal and firewood leads to significant environmental degradation, deforestation, and adverse health effects associated with indoor air pollution. This new partnership is poised to dramatically alter this narrative, promoting a cleaner, more sustainable energy future.
In a significant step towards transforming Uganda’s energy landscape, the Uganda National Oil Company (UNOC) and Vivo Energy Uganda Limited have signed a milestone agreement. This strategic partnership aims to facilitate the development, storage, and distribution of Liquefied Petroleum Gas (LPG) derived from Uganda’s nascent Tilenga and Kingfisher oil projects, significantly boosting the adoption of cleaner cooking solutions across the nation.
The signing ceremony, held at UNOC’s head office in Kampala, marks a pivotal moment in Uganda’s journey towards reducing its heavy reliance on biomass fuels, which currently dominate household energy consumption. Uganda currently grapples with low LPG consumption, with annual usage standing at approximately 25,000 tonnes and a per capita usage of just 1.2 kilograms.
The widespread use of charcoal and firewood leads to significant environmental degradation, deforestation, and adverse health effects associated with indoor air pollution. This new partnership is poised to dramatically alter this narrative, promoting a cleaner, more sustainable energy future.
The core of this initiative will be located at the Kabalega Industrial Park, a site under UNOC’s management that is concurrently being developed as Uganda’s oil export hub and will host an international airport. The project will include the construction of state-of-the-art LPG storage tanks and cylinder filling facilities, ensuring a robust and efficient supply chain for the country.
Speaking at the signing ceremony, Ms. Proscovia Nabbanja, CEO of UNOC, underscored the strategic importance of the collaboration. “This partnership with Vivo Energy Uganda reflects our shared commitment to investing in cleaner energy solutions and advancing Uganda’s industrial development goals,” she stated.
“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.” Ms. Nabbanja further emphasized that the project represents a major step towards increasing LPG uptake while supporting national priorities around clean energy, industrialisation, and public health.
Echoing this sentiment and highlighting the broader global commitment, Nimit Shah, Chief Financial Officer of the Vivo Energy Group, shed light on the deeper vision behind the project. “This partnership is part of the US$550 million investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa,” Mr. Shah revealed.
“That commitment supports LPG infrastructure development, safe cylinder distribution, and clean cooking projects in our African markets. To date, the Vitol Group has enabled access to clean cooking for over 10 million households across Africa. We are proud that Uganda is now a key part of this journey.”
Execution of the project is set to commence immediately, with technical design and site preparation being coordinated meticulously with the ongoing development and masterplan of Kabalega Industrial Park. This strategic intervention is not merely about infrastructure; it’s a vital component of a broader national effort to improve energy access and affordability for households, institutions, and businesses, while anchoring supply integration from Uganda’s upstream oil production projects.
The UNOC-Vivo Energy partnership represents a pivotal moment for Uganda’s energy sector. By leveraging domestic oil resources to provide accessible and affordable LPG, the agreement promises a healthier, more sustainable, and economically vibrant future for the nation, significantly contributing to the achievement of clean energy and industrialization goals.
