Uganda has signed a final agreement with Alpha MBM Investments, a UAE-based company, to establish a 60,000 barrels per day oil refinery in Kabaale, Buseruka Sub-County, in Hoima District.”
The deal was signed between Uganda’s Ministry of Energy and Mineral Development and Alpha MBM Investments at the State House Entebbe, with President Yoweri Museveni in attendance.
This $4 billion project is expected to be a game-changer for Uganda’s energy sector, reducing the country’s reliance on imported petroleum products and serving neighboring countries.
The project will also include the construction of a 211 km multi-product pipeline to a storage terminal in Namwabula, Mpigi District, as well as a storage terminal for refined products in Namwabula.
The refinery is expected to be constructed within three years and will process crude oil from Uganda’s Albertine Graben region.
President Yoweri Museveni was overjoyed, beaming with smiles, as he expressed his heartfelt gratitude to the UAE-based company for choosing to invest in Uganda
“Today, I witnessed the signing of a historic oil refinery implementation agreement between Uganda and Alpha MBM Investments LLC, a company based in the UAE. This agreement will see the construction of a crude oil refinery in Hoima District, with a capacity of 60,000 barrels per day,” he added.
“The oil refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them,” said Museveni.
”We must stop exporting raw materials and instead add value to everything we produce,” President Museveni said during his address at the signing ceremony.
The agreement paves the way for the design, construction, and operation of the 60,000 barrels-per-day (bpd) refinery, marking a critical step in Uganda’s quest to unlock value from its petroleum resources.
Once operational, the refinery will process Uganda’s crude oil into a range of petroleum products, including gasoline, diesel, kerosene, jet fuel, and heavy fuel oils.
It is expected to significantly reduce Uganda’s reliance on imported refined fuel, stabilize fuel prices, and boost national energy security.
Uganda’s oil imports have shown significant growth over recent years.
In 2020, the country imported mineral fuels and oils valued at approximately $976 million.
By 2022, this figure had increased to about $1.6 billion, with the majority of these imports originating from Gulf countries and approximately 90% transiting through Kenya.
Source: https://energynewsafrica.com
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