Cabinet has accepted China National Offshore Oil Corporation (CNOOC) Uganda Limited’s proposal for a license to build a liquefied petroleum gas facility in the King Fisher Development Area.
The announcement was made on December 20, 2023, at the Uganda Media Center in Kampala, at a press briefing held by Godfrey Baluku Kabbyanga, the state minister for ICT and National Guidance.
The Government’s Ministry of Energy and Mineral Development gave CNOOC Uganda Limited a production license to develop the Kingfisher oil block, among other prospects, to ensure that oil and gas production begins within the time limits specified.
The Kingfisher facility discovered a significant amount of associated gas, which CNOOC would like to convert to liquified petroleum gas for commercial uses in the country and its surrounding areas.
Uganda gets liquified petroleum gas from Arab oil producing nations via the Organization of Petroleum Exporting nations, according to Eng. Geoffrey Ogwang, commissioner petroleum department, Ministry of Energy and Mineral Development.
Uganda now utilizes around 20 metric tons of liquified petroleum gas per year. Uganda, on the other hand, mostly uses biogas.
“Once we produce gas, it will increase access with improved balance of payment position because it impacts on income and economics,” he added.
He stated that they expect the plant to remain operational until Uganda produces its first oil in 2025.
The East African Crude Oil Pipeline (EACOP) reported the arrival of the first shipment of 100km of line pipe on December 12, this year, signaling the start of the major construction phase for the cross-border pipeline project.
EACOP will transport crude oil from Uganda’s Albertine area to Tanzania’s Chongoleani peninsula near Tanga, where it will access global markets. The project represents a significant inbound investment for both nations.
Merian Ahabwe, Petroleum Authority of Uganda (PAU) national content manager, highlighted at the recent National Content Conference that 98% of the personnel contributing to EACOP’s success are Ugandans, with 51% originating from local communities in the Albertine area.
According to PAU, EACOP interacts with 117 Ugandan enterprises and has plans for additional development in the following year.
