By Diana Kintu.
The Uganda National Oil Company (UNOC) has joined forces with Vivo Energy Uganda, the local distributor of Shell products, to develop critical infrastructure for liquefied petroleum gas (LPG) in the oil-rich Albertine region.
This collaboration marks a strategic move to utilise Uganda’s associated gas resources, which will be processed into LPG for domestic use. The project centres around Kabalega Industrial Park in Hoima – already a hub for Uganda’s oil projects, including the East African Crude Oil Pipeline. Here, the partners will establish storage and distribution facilities to make LPG more accessible nationwide.
Currently, over 90% of Ugandan households rely on firewood or charcoal for cooking, with annual LPG consumption standing at just 25,000 tonnes. The new initiative could dramatically change this picture. When Uganda’s oil fields begin production, they’re expected to yield 200,000 tonnes of LPG annually – eight times current usage levels.
“This project goes beyond business – it’s about transforming lives,” said Proscovia Nabbanja, UNOC’s Chief Executive Officer. “By converting our natural gas into LPG, we’ll protect our forests, improve public health, and particularly benefit women who bear the brunt of smoke-related illnesses.”
The health benefits are indeed significant. According to the World Health Organisation, smoke from solid fuels causes nearly 13,000 premature deaths annually in Uganda. Wider LPG adoption could substantially reduce these numbers while slowing deforestation rates.
The July 29 agreement kicks off preparatory work, including land surveys and engineering designs at the Hoima site. Joanita Mukasa Menya, Vivo Energy Uganda’s Managing Director, emphasised the project’s immediate impact.
“We’re not just planning for the future – this will start creating value as soon as construction begins.”
to be taking a pragmatic approach. While oil exports will generate revenue, this LPG initiative ensures domestic energy needs are met sustainably. The Hoima facility will position
Local communities stand to gain through job creation during construction and ongoing operations. The project will also stimulate related businesses – from LPG cylinder manufacturing to distribution networks – creating what economists call a quickly “value chain” effect.
Uganda’s energy strategy appears Uganda as a regional leader in clean energy adoption of fossil resources.
As construction preparations begin, all eyes will be on how these plans translate into affordable LPG cylinders reaching rural households. For now, the partnership represents an important step in ensuring Uganda’s oil wealth benefits both the economy and the environment.