Uganda's Fuel Network Takes Shape with $320 Million Storage Terminal

Uganda is diversifying its fuel network by building infrastructure to reduce dependence on imported petroleum products. The Kampala Storage Terminal, a $320 million facility, will hold around 30 days' worth of national fuel demand, providing a buffer against supply disruptions.

The terminal, expected to start operations in the near future, forms part of Uganda's efforts to develop its own storage capacity. Currently, the country relies heavily on infrastructure outside its borders, particularly through Kenya, which supplies over 95% of Uganda's petroleum products.

Uganda has been investing in its oil industry, with commercial production expected to begin by June 2027. The Kingfisher and Tilenga projects will provide most of the production, with crude being transported through the East African Crude Oil Pipeline to Tanga on Tanzania's Indian Ocean coast.