President Yoweri Museveni has launched the construction of a 320-million-litre fuel storage terminal in Mpigi District, a project the government says will strengthen Uganda’s petroleum supply security and improve the distribution of fuel across the country.

The Kampala Storage Terminal, located in Buloba, is being developed by the Uganda National Oil Company (UNOC) and will add 320 million litres to the country’s inland fuel storage capacity.

The facility is expected to supplement existing storage infrastructure, including the 30-million-litre facility in Jinja, the Mahathi storage facility at Kawuku and storage facilities operated by private oil companies.

At the launch, President Museveni said the establishment of adequate fuel storage infrastructure was long overdue and blamed delays on what he described as failures by technical officials in the Ministry of Energy and Mineral Development to implement government directives.

The President said officials had previously failed to pursue direct procurement arrangements with oil refineries, leaving Uganda dependent on intermediaries in the petroleum supply chain.

“The people who were supposed to implement these directives did not do so,” President Museveni said, attributing the delays to what he described as “sleepy technical officers” in the energy ministry.

Museveni directed the Ministry of Energy and Mineral Development to accelerate the establishment of additional regional fuel storage facilities, saying the planned infrastructure would still not be sufficient to meet the country’s growing demand for petroleum products.

The President also outlined plans to expand the use of pipelines and railway transport in the movement of petroleum products, in a shift away from dependence on road transportation.

Under the plan, a pipeline would transport fuel from the proposed refinery in Hoima to the Kampala Storage Terminal in Buloba, while railway infrastructure would be used to move petroleum products to regional markets and other inland destinations.

Museveni said the investment in transport infrastructure would help reduce the cost and risks associated with transporting fuel by road while improving the reliability of supplies.

The President also highlighted Uganda’s fuel supply arrangement with Vitol Bahrain E.C., saying the partnership with UNOC had helped the country reduce its reliance on middlemen in the petroleum distribution chain.

He directed the Permanent Secretary in the Ministry of Energy and Mineral Development, Ms Irene Batebe, to explain the financial losses Uganda had previously incurred through intermediaries before the government moved towards direct engagement with refineries and suppliers.

Museveni commended Vitol Bahrain E.C. for its partnership with UNOC, saying the arrangement would support sustainable fuel supplies to Uganda.

The President also rejected a proposal by Kampala Capital City Authority (KCCA) to establish a garbage disposal site near the fuel storage terminal in Mpigi.

Museveni said placing a waste disposal facility close to a major petroleum storage installation could expose the facility to safety risks, particularly the possibility of fires.

He directed authorities to reconsider the proposed location of the garbage disposal site to avoid exposing the fuel storage facility to potential hazards.

Energy and Mineral Development Minister Dr Monica Musenero described the Kampala Storage Terminal as a critical component of Uganda’s petroleum supply infrastructure and a key part of the country’s wider oil and gas development strategy.

Dr Musenero said the government’s plan to establish regional fuel storage facilities would provide strategic reserves that could help cushion the country against fuel shortages and their economic consequences.

She also briefed President Museveni on the potential risks posed by the proposed garbage disposal site near the fuel storage terminal.

The Kampala Storage Terminal is expected to increase Uganda’s capacity to store petroleum products inland and strengthen the country’s preparedness against disruptions in fuel supply as demand continues to grow.