UNOC and VIVO Energy Uganda Sign Liquefied Petroleum Gas Agreement
Uganda National Oil Company (UNOC) and Vivo Energy Uganda Limited have signed an agreement regarding storage and distribution of liquefied petroleum gas (LPG) from the key oil projects.
The Early Project Activities Agreement (EPAA) was signed at the UNOC head office in Kampala where the two entities concurred on LPG’s importance to environment protection and public health.
Tilenga and Kingfisher, the key upstream projects will yield 100,000 tonnes of LPG. UNOC, the Government nominee in the two projects, will collaborate with Vivo Energy on the Government of Uganda’s share of the gas.
“The signing of the Early Project Activities Agreement (EPAA) between the Uganda National Oil Company and VIVO Energy Uganda in preparation of the LPG project to offtake and supply gas from the Kingfisher and Tilenga Upstream projects signifies our shared vision and a collective ambition to progress this transformative LPG project for the people of Uganda,” UNOC CEO Proscovia Nabbanja stated.
“This EPAA sets out the general framework within which we shall undertake key early phase technical activities. These activities are essential for the final investment decision and future execution under the Joint Venture (JV) Company we intend to form.”
Vivo Energy Uganda Managing Director, Joanita Mukasa Menya said the collaboration would transform lives by ensuring that Ugandans have access to clean energy in addition to ensuring a resilient economy.
According to Menya, Vivo Energy Uganda Limited is committed to supporting the government’s plan of improving and easing access to modern energy.
“This project will immediately begin to unlock the benefits of Uganda’s LPG reserves. 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,” Menya said.
Currently, Uganda’s LPG consumption is approximately 25,000 tonnes annually with the per capita consumption estimated to be 1.2 kilograms per year. Most Ugandans are deemed as energy poor-lacking affordable efficient energy with the majority using wood fuel-charcoal and firewood.
Energy poverty has grossly affected Uganda’s tree cover. According to the Global Forest Watch, in 2010, Uganda had 6.92 million hectares of natural forest, extending over 29% of its land area. In 2023, it lost 68.7 thousand hectares of natural forest, equivalent to 36.3 metric tons of CO₂ emissions.
According to the Clean Cooking Alliance, 2.4 billion people, or 40% of the world’s population, rely on open fires and inefficient fuels such as wood, charcoal, coal, and kerosene for cooking.
“Lack of access to clean cooking solutions forces women and children in many developing countries to spend as much as 10 hours a week collecting fuel. In some cases, women provide 91% of households’ total efforts to collect fuel and water. Women have an average working day of 11-14 hours, compared to an average of 10 hours for men.”
Kingfisher project in Kikuube district, it will produce approximately 20,000 tonnes of LPG per year. On 23, January 2024, CNOOC Uganda on behalf of joint venture partners TotalEnergies and Uganda National Oil Company (UNOC), received a five-year license to construct and operate a gas conversion storage facility. The facility is in sync with the oil production activities.
Similarly, Tilenga in Buliisa and Nwoya will produce 80,000 tonnes of LPG per year. According to TotalEnergies EP Uganda officials, producing the gas is part of the project’s carbon footprint reduction plan and reduction of greenhouse gases (GHGs). Increased GHGs create a layer, which traps heat dramatically increasing temperatures, an undesirable situation. END