Uganda's Oil Refinery: A Catalyst for Industrial Growth

Uganda is making significant strides in its energy sector with the development of a new oil refinery strategically located within the Kabalega Industrial Park in Hoima City. This large-scale project is poised to transform the nation’s energy landscape and spur economic development.

The refinery boasts an impressive capacity to process 60,000 barrels of crude oil daily. Its output will include a range of vital petroleum products, such as petrol, diesel, kerosene, jet fuel, and heavy fuel oil, alongside liquefied petroleum gas (LPG), commonly known as cooking gas. This production is aimed at meeting domestic demand and enhancing Uganda’s energy security.

To ensure efficient distribution, a 211-kilometer multi-product pipeline is under construction. This pipeline will transport refined products from Hoima to a storage and distribution terminal in Mpigi District. The terminal, managed by the Uganda National Oil Company (UNOC), will facilitate the supply of fuel to various oil marketing and distribution companies across the country.

Beyond fuel production, the refinery is a crucial component of the planned Kabalega Petro-based Industrial Park. It will supply feedstock for the manufacture of a diverse array of products, including plastics, fertilizers, pharmaceuticals, and textiles, thereby unlocking greater value from Uganda’s petroleum resources and fostering downstream industries.

The establishment of this refinery is expected to generate numerous jobs, reduce the need for fuel imports, conserve foreign exchange, and significantly catalyze the growth of value-adding petrochemical industries. It represents a major step towards Uganda’s industrial transformation and sustainable economic growth.

Source: Uganda Investment Authority