Uganda has signed an agreement with Alpha MBM Investments to develop a crude oil refinery in Kabaale, Hoima District.
President Yoweri Museveni highlighted that the project goes beyond fuel production, stressing Uganda’s ambition to refine and export its own products rather than depending on imports. He underlined the importance of adding value to local resources instead of exporting them raw.
The Uganda National Oil Corporation entered into a partnership with Alpha MBM earlier this year, later formalizing the commercial agreements in mid-August.
The government turned to Alpha MBM after a previous consortium withdrew from the talks.
Led by Sheikh Mohammed bin Maktoum of Dubai’s royal family, Alpha MBM will hold the majority stake, while the Uganda National Oil Company will retain the rest.
The refinery will be financed through a mix of debt and equity. Construction is expected to begin soon, with operations projected to follow within a few years.
Plans for the Greenfield Oil Refinery also include a multi-product pipeline linking Uganda’s second-largest city to a distribution terminal in Namwabula, Mpigi District, as well as a raw water pipeline from Lake Albert.
Uganda sees the refinery as a cornerstone of its strategy to strengthen energy security and cut dependence on imports. According to the state oil company, the country relies heavily on imported refined fuel, which costs billions each year.
Once operational, the refinery is expected to meet domestic needs and create surplus for export across African markets, which still import most of their refined products despite producing crude oil.
In parallel, Uganda is advancing the East African Crude Oil Pipeline project, which has entered its final phase. Engineers anticipate completion in the coming years, with work already moving forward on a crucial stretch linking the Waiga River to the Kabalega Industrial Park in Hoima.
source:www.intellinews.com
African Energy Council