Uganda: Tamoil To Construct Fuel Storage Terminal

Tamoil is to construct the Kampala Oil Products Terminal and the Eldoret-Kampala oil pipeline extension project at $ 250m.

Photo:Mr Twodo (Petroleum Commissioner) left and Mr Kagimu (Tamoil) exchange documents. Centre is Mr Elgembri (Tamoil East Africa).

The Uganda government has secured land for the fuel storage terminal which will serve Uganda, Rwanda and Burundi.  Work on the terminal and pipeline is expected to start in April after the Government handed over the land to Tamoil officials during a ceremony last week.

Ben Twodo, the commissioner for petroleum in the ministry of energy and mineral development, said work had been pending since 2007 due to a land ownership wrangle.  However, the disputing sides, Mulowooza and Brothers Ltd and N Shana Company Ltd signed a Memorandum of Understanding with the Government that okayed the developments on the land.

The Tamoil Uganda chairman, Habib Kagimu, said the oil pipeline would end at the terminal before it could be extended to Rwanda and Burundi, once the feasibility studies were concluded.  Kagimu said when completed, the cost of transporting fuel from Kenya into Uganda would reduce, thus lowered fuel prices.  The land located at Namwabula in Mawokoota County, Mpigi district, is 360 kilometres from Eldoret and measures 1 square mile.

Ahmed Elgembri, the Tamoil East Africa project manager said the terminal would have 24 fuel storage tanks an optimum capacity of 160m litres of oil products. Works to level the site commence on April 15 for 15 months.

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