President Yoweri Museveni on Thursday officially commissioned the construction of the Kampala Storage Terminal (KST) at Namwabula in Mpigi District, launching a project described by government officials as vital for securing Uganda's petroleum reserves.

The US$310 million (about Shs 1.2 trillion) facility is being developed by the Uganda National Oil Company (UNOC) on a 300-acre site. Upon completion, the terminal will store up to 320 million litres of refined petroleum products and Liquefied Petroleum Gas (LPG), effectively doubling the nation's current government-managed reserves and offering up to 30 days of national fuel consumption buffer.

Boost to energy security. Speaking at the launch, Minister of Energy and Mineral Development Monica Musenero emphasized that the infrastructure will help cushion Uganda from external supply disruptions and price shocks. UNOC Board Chairman Mathias Katamba highlighted the project's financial prospects, noting it is expected to yield approximately US$30 million annually from storage service charges, create thousands of direct and indirect jobs, and establish Uganda as a regional fuel distribution hub for eastern Democratic Republic of Congo and north-western Tanzania.

Environmental safeguards. Addressing transport logistics, President Museveni took a firm stance against marine fuel haulage, ruling out the movement of petroleum products across Lake Victoria. He warned that any accidental vessel spillage would devastate the lake, which serves as a crucial freshwater supply for millions across the region. Consequently, the head of state mandated reliance on rail networks and pipelines, including a planned 211-kilometre multi-products pipeline connecting the facility directly to the Hoima Petroleum Refinery.

Implementation pipeline. Although the terminal presents significant strategic advantages for Uganda's growing energy market, industry analysts note that keeping the project within its 24-month construction schedule will be essential to ensure operations align with commercial oil timelines ahead of full commissioning in September 2028. King Musah Media will continue to follow progress on this development as works proceed in Mpigi.