The Planned Uganda’s Second Fuel Storage Terminal

On 299 acres at Namwabula Estate-Nsujjumpolwe village, Kiringete subcounty, Mpigi District, about 26Km from Kampala city centre and 2kms off Buyala trading centre on Mityana road, you will see them everywhere: acres of giant white tanks—some rotund and some a bit slimmer—rising from the ground like a farmer’s root crop ready for harvest. UNOC is set to construct the second largest fuel storage facility in East Africa region, next to Kenya Pipeline company’s storage facility at Kipevu storage terminals.

Kampala Storage Terminal (KST) as it is popularly known, when complete will keep up to 320 million litres of refined petroleum products. These products will be received as import through Kenya and Tanzania and later from the planned refinery in Hoima. KST will also have an extension terminal to serve as a storage facility for Liquified Petroleum Gas (LPG).

It is expected that Kampala Storage Terminal will reduce Uganda’s petroleum products(fuel) shortages that usually lead to speculations and sometimes abnormal increase in fuel prices.  Enhancing security of petroleum products supply will also cause the activation of suppressed demand. KST also planned serves as a central storage facility for petroleum products from the planned Hoima refinery and UNOC is confident this will reduce chances of building many more small storage facilities around Kampala that could greatly expose the environment and the population around to petroleum fires and spillage.  

UNOC will undertake the development of this project in phases commencing with 138 million liters and targets to complete the project within the next two years. This project was acquired through a transfer from Ministry of Energy and Mineral Development (MEMD) which preceded acquisition of the Project Master plan. The Project Master plan was enhanced to incorporate future projects and expansion while optimizing cost. The project Environmental and Social Impact Assessment (ESIA) has also been developed with a positive stakeholder engagement and experience at the core. A stress-free existence for the community and the environment was considered at every step of ESIA therefore robust, biometric, mobile and automation technologies were advanced to ensure a truly seamless journey in the development and operation of KST.

In order to increase the project value, skill and technology transfer to Ugandans, UNOC is currently engaged in the process of acquiring a strategic partner(s) to hold 49% interest in the project. The Expression of Interest (EOI) was advertised in print media and attracted several international and local companies from which a shortlist of potential partners was made to advance to full Proposal stage.

KST is at the Centre of future planned regional refined products pipelines and will serves as a hub for receiving and distributing products thus unlocking markets for petroleum products within the East African region. The adoption of modern technology in the designs and construction at KST and associated connecting pipeline will ensure safe, efficient and cheaper transportation and storage of petroleum products in the region.

With an innovative and global vision, the initial planned KST capacity of 138 million litres is projected to more than double in the future and so a phased development anticipated to meet the growing demand for petroleum products in the country and region. Therefore, on commissioning of the KST project under UNOC-led investments, local and strategic development of Uganda’s petroleum value chain will be promoted and significant contribution towards achieving Uganda Vision 2040, of transforming Uganda from a Peasant to a Modern and Prosperous Country is envisaged.