President Yoweri Kaguta Museveni on Thursday broke ground on the US$310 million Kampala Storage Terminal (KST) in Namwabula, Mpigi District, marking a critical leap in Uganda’s downstream petroleum development.
The Uganda National Oil Company (UNOC) is spearheading the greenfield terminal on approximately 300 acres to provide storage capacity for up to 320 million litres of refined petroleum products.
UNOC Board Chairperson Mathias Katamba stated that the terminal will insulate the domestic economy against volatile foreign import corridors, sudden supply shocks, and pricing surges.
Uganda currently consumes an average of 240 million litres of petroleum products each month, including petrol, diesel, jet fuel, and kerosene.
The terminal will complement the existing 30-million-litre Jinja Storage Terminal and privately owned fuel depots across the country.
The modern installation will hold government strategic emergency reserves while offering hospitality and bulk storage space to licensed Oil Marketing Companies (OMCs).
The project links directly to the national downstream value chain, integrating with Uganda’s planned 60,000-barrel-per-day oil refinery in Hoima via a proposed 211-kilometre multi-products pipeline.
The facility will incorporate the future Mpigi Remote Refinery Terminal (MRRT) to receive, store, and dispatch locally processed fuels alongside imported supplies.
The strategic storage hub aligns with Uganda's Fourth National Development Plan (NDP IV) targets.
Under the framework, the government aims to expand refined petroleum storage capacity from 99.1 million litres in the 2023/24 fiscal year to 150 million litres by 2029/30.
Katamba added that civil works will stimulate the local economy through engineering tenders, transport logistics, and technical jobs for Ugandan workers.
The ceremony follows the official christening of Uganda’s crude oil blend as "Pearl Sweet" by President Museveni at the Kingfisher field earlier this month.
The Mpigi depot completes the supply link between commercial oilfield extraction, domestic refining, and secure fuel distribution to Uganda and neighboring regional markets.
