Hoima, Uganda – Uganda has taken a major step toward improving access to clean energy and cutting down on harmful fuel use. On July 29, 2025, Vivo Energy Uganda and the Uganda National Oil Company (UNOC) signed an agreement to build a large Liquefied Petroleum Gas (LPG) storage and distribution hub at Kabalega Industrial Park in Hoima District.
The project aims to boost the use of LPG across Uganda, especially for cooking in homes, schools, and small businesses. It is part of a broader national plan to reduce dependence on charcoal and firewood, which harm the environment and public health.
“This partnership with Vivo Energy reflects our commitment to cleaner energy and economic development,” said Proscovia Nabbanja, CEO of UNOC. “It will make LPG more affordable and available to Ugandans.”
The project will include, Large LPG storage tanks, Filling stations for cylinders, Distribution infrastructure to supply homes and businesses and Job creation in the Hoima area and beyond
The storage hub will be linked directly to Uganda’s upstream oil and gas production, making it easier to store and distribute gas locally and regionally.
“We are proud to support Uganda’s transition to clean energy,” said Joanita Mukasa Menya, Managing Director of Vivo Energy Uganda. “This hub will ensure safe, reliable LPG supply and help reduce deforestation caused by cooking with firewood.”
The project will:
Protect Uganda’s forests by reducing wood fuel use
Improve public health by cutting indoor air pollution
Create local jobs and support industrial growth
Help Uganda become a regional hub for clean energy trade
The LPG hub in Kabalega Industrial Park is part of a larger vision to transform Hoima into an energy and logistics center, which includes an oil export terminal and the planned Hoima International Airport.
“This project marks a turning point in Africa’s clean energy journey,” said Hans Paulsen, Executive Vice President at Vivo Energy East. “Similar efforts are underway in Namibia, Réunion, and Mayotte. Uganda is now part of this regional energy transformation.”
The project also ties into a \$550 million clean cooking investment pledge made by Vitol and Vivo Energy at the 2024 Summit on Clean Cooking in Africa. That initiative has already helped over 10 million households across Africa access clean cooking fuels.
“We’re proud that Uganda is joining this movement,” said Nimit Shah, CFO of Vivo Energy Group.
Construction will start soon, with site preparation already underway. Technical designs will follow the Kabalega Industrial Park masterplan.
Uganda faces rising demand for cleaner, safer energy. About 90% of Ugandans still rely on firewood or charcoal for cooking, contributing to deforestation and health risks. This project is a key step toward reducing that figure and making clean cooking fuels more available to ordinary citizens.
