Mpigi – President Yoweri Museveni on Thursday commissioned the construction of the Kampala Storage Terminal, a major petroleum facility expected to significantly strengthen Uganda’s fuel reserves and protect the country from international supply disruptions.
The terminal, located in Namwabula Village, Kiringente Sub-county in Mpigi District (about 26 kilometres west of Kampala along the Kampala-Mityana Road), will have a full capacity of 320 million litres of refined petroleum products. The project is estimated to cost approximately US$310 million (about Shs1.2 trillion) and is being developed by the state-owned Uganda National Oil Company (UNOC) in partnership with global energy trader Vitol Bahrain.
When completed, the facility will more than double Uganda’s current petroleum storage capacity and provide strategic reserves equivalent to roughly 30 days of national consumption. Uganda currently uses about 240 million litres of fuel per month. The terminal is designed to receive both imported products and refined fuel from the planned Hoima oil refinery through a future 211-kilometre pipeline. It will also support bulk trading and distribution to Kampala, the central region, and neighbouring markets.
Speaking at the groundbreaking ceremony, President Museveni said adequate storage infrastructure is critical as Uganda develops its oil and gas sector. He emphasised that the country must move beyond reliance on middlemen and insecure supply chains. The President also ruled out the transportation of petroleum products across Lake Victoria, warning that an accident involving a fuel vessel could cause severe environmental damage to one of the nation’s most important freshwater resources. He instead called for greater use of pipelines and railways.
UNOC Board Chairman Mathias Katamba confirmed that the Engineering, Procurement and Construction contract takes effect on September 18, 2026, with detailed engineering expected to be completed by March 2027. Full commissioning of the terminal is targeted for around September 2028. The facility will initially hold 225 million litres before expanding to its full 320-million-litre capacity in a second phase linked to progress on the Hoima refinery.
Permanent Secretary in the Ministry of Energy and Mineral Development, Eng. Irene Batebe, said the terminal will serve as a strategic national reserve, a hub for oil marketing companies, and a key node in Uganda’s emerging domestic petroleum supply chain. Once operational, UNOC expects the facility to generate significant revenue from storage service charges while improving the country’s resilience to global fuel shocks.
The Kampala Storage Terminal marks another major milestone in Uganda’s oil infrastructure drive, coming shortly after the naming of the country’s crude oil as “Pearl Sweet.” Government officials say the project will create jobs during construction and strengthen Uganda’s position as a potential regional petroleum hub.
Trending UG will continue monitoring progress on this strategic energy project.