Vivo Energy, UNOC to construct LPG storage hub in Hoima

KAMPALA, Uganda — Vivo Energy Uganda and the Uganda National Oil Company (UNOC) have officially sealed a groundbreaking partnership to develop a liquefied petroleum gas (LPG) storage hub at the Kabalega Industrial Park in Hoima. This massive investment aims to significantly boost Uganda’s clean energy access and position the nation as a key player in the regional energy market.

The agreement falls under UNOC’s mandate to integrate upstream gas production with domestic consumption, marking a substantial expansion of infrastructure to meet a growing demand for LPG both within Uganda and across the region.

This vital partnership will establish crucial LPG storage and filling capacity, directly linking to Uganda’s upstream production projects. Officials anticipate it will vastly improve access to clean cooking fuels nationwide, supporting ongoing initiatives to reduce reliance on biomass. This shift is expected to protect forests and enhance public health. Beyond environmental benefits, the project is also set to stimulate economic growth, create local jobs, and strengthen local content in Hoima and neighboring areas.

“This partnership with Vivo Energy Uganda reflects our shared commitment to investing in cleaner energy solutions and advancing Uganda’s industrial development goals,” said Proscovia Nabbanja, CEO of UNOC, after signing on behalf of the Ugandan government. “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.”

Joanita Mukasa Menya, managing director of Vivo Energy Uganda, emphasized the project’s pivotal role in Uganda’s energy transition. “Partnering with UNOC on this LPG storage project positions Vivo Energy to support Uganda’s clean energy transition by ensuring reliable, safe and affordable LPG storage and distribution,” she stated. “Our shared goal is to increase the local adoption and use of LPG—not only for domestic cooking but also to power small businesses, institutions, and industrial operations—while also positioning Uganda as a potential exporter of clean energy solutions in the region.”

Hans Paulsen, executive vice president East of Vivo Energy, highlighted the broader regional implications of the significant investment. “The development of LPG infrastructure at Kabalega Industrial Park represents a fundamental shift in our energy landscape,” he explained. “This initiative in Uganda is part of a broader regional momentum, complementing similar efforts in Namibia, Reunion, and Mayotte, and showcasing how public-private partnerships can accelerate Africa’s clean energy transition.”

Nimit Shah, chief financial officer of the Vivo Energy Group, confirmed the project is part of a larger continental commitment. “This partnership is part of the $550 million investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa,” Shah noted. “That commitment supports LPG infrastructure development, safe cylinder distribution, and clean cooking projects in our African markets. We are proud that Uganda is now a key part of this journey.”

The project will involve constructing state-of-the-art LPG storage tanks, handling, and cylinder filling equipment, all seamlessly integrated with the broader Kabalega Industrial Park masterplan. This park, managed by UNOC, is also designated to host Uganda’s oil export hub and an international airport, further highlighting the strategic importance of the new LPG facility.

Project execution will commence immediately, with technical design and site preparation aligning with ongoing infrastructure works already well underway at the park. This initiative further solidifies UNOC’s continuous efforts in oil and gas infrastructure development, contributing significantly to Uganda’s energy security and sector transformation.