Uganda beautifies the Nations Image on the Energy Security in the Medium Terms

By Abdul Rahman Bangura-

Photo Credit: Research Gate

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Experts have averred that, Uganda Energy sector is in insecure based on the lack of a direct route to the sources of petroleum products as a landlocked nation, similarly, it does not have her own refinery. Though the alternative of adequate storage systems for landlocked nations has not been handled well by Uganda.

This has effectuated in a crystal supply disruption navigating to scarcity and price instability, though not to the scale of the worst-hit nations, according to the Ministry.

Speaking at this week’s 9th Oil and Gas Convention organized by the Uganda Chamber of Mines and Petroleum, speakers questioned the readiness of the country against the frequent shocks that affect supply.

Ellison Karuhanga – an Oil Law expert, for highlighted the Uganda’s storage capacity is just 15 days and this is if all the storage facilities were kept full at any one time.

The Uganda Administration has only fuel reserves in Jinja which have a capacity of just over 10 million liters of diesel and about 20 million for petrol, yet the country’s consumption is calculated at almost 7 million liters per day. This translates that, supply stability is largely at the mercy of private marketers.

In 2022, Uganda National Oil Company (UNOC) took over the Jinja Storage Terminal with the possibility of better managing it and stabilizing supply. Gilbert Kamuntu, UNOC Chief Commercial Officer noted, they live on providence to boost supply and stability “soon” once the company commences importing fuel products to minimize reliance on Kenyan importers.

According to him, it’s on top of other activities scheduled by the firm, encircling the refinery project which has undergone negotiations by Uganda and the United Arab Emirates and Saudi Arabia. The refinery is anticipated to be finished in 2027, two years after the expected oil production date, meaning that the commercial crude oil produced early will all be exported through the pipeline.

Ruth Nankabirwa – the Minister of Energy and Mineral Development, stated that, preceding the license granted to UNOC by Kenya, the company should make its maiden imports before the end of June.

Thus, she remarked that, this will go on in alliance with the projects in line with Tanzania’s progress to develop the central corridor as another chance for the importation of petroleum products. She furthered said, there are schedules for a Liquefied Nitrogen Gas pipeline and a select committee is already constituted to start the feasibility study.

Vice President Jessica Alupo admonished Nankabirwa to prepare a report on the concerns of energy security as raised by the diverse stakeholders, for presentation before the coming cabinet meeting.

In a statement read for him by Alupo, President Yoweri Museveni stated that energy security was critical for the protection of the environment because the easier option for the public is to go for firewood and charcoal. He lamented that with the current discovery of 500 billion cubic feet of natural gas, the country will be able to increase reliance on clean energy and save more forest cover, though most of it will go towards powering oil and gas production activities. This, according to him, will help Uganda’s transition to just energy.

The convention was organized under the theme: The journey to first oil in Uganda in the face of a just energy transition, picked from the discussions at the 28th UN Climate Change Conference (COP28) in Dubai in 2023.

At the conference, Uganda successfully pushed for the removal of clauses in the consensus, which debarred the development of oil and gas resources. After recognizing the global demand for oil and gas, COP28 proposed a gradual, rather than instant, transition from these resources.

Patrick Mweheire, the Chairperson of the Uganda Chamber of Mines and Petroleum stated, this is the reason they agreed on that theme that correlates with Uganda’s position of the energy transition.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent