Oil and Gas
Vivo Energy, UNOC Partner to Build Strategic LPG Storage Hub in Hoima
In a landmark move aimed at transforming Uganda’s energy landscape, Vivo Energy Uganda and the Uganda National Oil Company (UNOC) today signed a strategic partnership to develop liquefied petroleum gas (LPG) storage and filling infrastructure at the Kabalega Industrial Park in Hoima District.
The project, formalised on behalf of the Ministry of Energy and Mineral Development, is a critical milestone in Uganda’s clean energy transition and is expected to significantly expand access to safe and affordable LPG across the country and region.
According to officials, the partnership will not only support UNOC’s mandate to integrate upstream gas production with domestic use but will also position Uganda as a potential LPG exporter in the East African region. The new facility will house bulk storage tanks, handling systems, and a cylinder filling station, directly linked to Uganda’s growing oil and gas reserves in the Albertine Graben.
“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. “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.”
UNOC is expanding its infrastructure portfolio to meet rising LPG demand in Uganda and the region, with the Kabalega Industrial Park project aligning closely with the national strategy to replace biomass-based cooking fuels, which currently dominate domestic energy consumption. The shift to LPG is seen as key to curbing deforestation, reducing indoor air pollution, and improving public health.
Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda, emphasised the private sector’s role in advancing Uganda’s energy agenda:
“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 added that beyond residential use, the infrastructure will help power small businesses, institutions, and industrial operations, while strengthening Uganda’s regional energy competitiveness.
Hans Paulsen, Executive Vice President for Vivo Energy East, linked the project to a broader regional transformation:
“This initiative in Uganda is part of a larger momentum, complementing similar LPG infrastructure projects in Namibia, Réunion, and Mayotte. It showcases how public-private partnerships can accelerate Africa’s clean energy transition.”
Highlighting the project’s financial and strategic backing, Nimit Shah, Chief Financial Officer of the Vivo Energy Group, noted its connection to the $550 million pan-African clean cooking investment pledge announced at the 2024 Summit on Clean Cooking in Africa:
“That commitment supports LPG infrastructure development, safe cylinder distribution, and clean cooking projects across our African markets. We are proud that Uganda is now a key part of this journey.”
The project will align with the Kabalega Industrial Park masterplan, which includes Uganda’s upcoming oil export hub and international airport. The park is managed by UNOC and plays a central role in Uganda’s energy infrastructure rollout.
With the signing complete, project execution is set to begin immediately, including technical designs, site preparation, and integration with existing infrastructure developments in the area.
This latest development follows UNOC’s wider infrastructure agenda, which includes projects like the Jinja Storage Terminal and other bulk storage facilities, all aimed at ensuring Uganda’s energy security and accelerating economic transformation through the oil and gas sector.
The partnership is expected to create jobs, boost local enterprise, and elevate Uganda’s standing in the regional energy market — furthering the government’s goals for sustainable industrial growth and energy access for all.
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