Government has given out a license to the China National Offshore Oil Corporation (CNOOC) Uganda Limited to proceed with the construction of a Liquefied Petroleum Gas (LPG) facility in the Kingfisher development area.
The Minister for Energy and Mineral Development, Ms Ruth Nankabirwa, while handing over the license said the facility will be able to produce 20,000 tonnes of LPG annually.
She says the project will cost over USD 4.8 million and it is expected to be ready by 2025.
Last year, CNOOC Uganda Ltd submitted an application to the government for a license to produce and distribute Liquefied Petroleum Gas and electricity generated from the gas resources located at its Kingfisher oil field.
She highlighted that the inception of the LPG facility marks a significant step for Uganda in advancing its clean energy initiatives. Stressing the double benefit, she underscores that the produced LPG not only meets energy demands but also plays a crucial role in promoting environmental sustainability.
“LPG production is consistent with our national development objectives on the energy use in Uganda. We expect that the increased supply together with focused market penetration interventions will stimulate increased consumption to the desired levels necessary to cause a shift in the high dependency on biomass to the use of cleaner fuel,” Nankabirwa said on Tuesday.
