Peter Muliisa, the UNOC’s Chief Legal and Corporate Affairs Officer revealed to Uganda Radio Network - URN that KST is ‘not yet constructed’ and the search for a partner to develop it is still on.
The Uganda National Oil Company – UNOC has said the
search for a venture partner is delaying the development of Kampala Storage
Terminal – KST, a reservoir aimed at reducing fuel shortages
that usually lead to abnormal increase in petroleum products.
Peter Muliisa, the UNOC’s Chief Legal and Corporate
Affairs Officer revealed to Uganda Radio Network - URN that KST is ‘not yet constructed’ and the search for a partner to develop it is still
“We are in
the process of getting a joint venture partner to develop the 320 million litre
capacity storage,” says Muliisa.
His response follows
concerns raised by lawmakers on the Committee of Government Assurance and
Implementation last week about the status quo of the facility in the wake of
ever-increasing fuel prices in the country since January 2022.
The terminal estimated to cost Shillings 578.6
now hangs in balance as the country continues to witness
an increase in fuel prices. Since January 2022, fuel prices have been soaring from
Shillings 4,000 a litre to the current prices of between Shillings 6,000 and
Shillings 7,000 - a global crisis being linked to the raging Russia - Ukraine ongoing war.
Last week, Irene Batebe,
the Permanent Secretary in the Ministry of Energy and Mineral Development told
MPs on the Committee that currently they are more concerned with ‘steady fuel
flow to avoid total lack of it than stabilizing the prices. Batebe also disclosed
that the Government through UNOC is in negotiation with a South African Company
to import fuel in the country, a short-term intervention aimed at ensuring
enough fuel stocks ahead of general elections in Kenya slated for August 9th,
“It is true
that UNOC is importing eight million litres and we should have the volumes
in-country by 30th of July,” Muliisa confirmed the development. However, he
could divulge details of the prices they buy petroleum products saying it would
‘disadvantage’ their business.
During plenary sitting on Tuesday
last week, the Deputy Speaker of Parliament Thomas Tayebwa directed the
Committee on Environment and Natural Resources to hold meetings with all
stakeholders in the petroleum sector in a bid to resolve the current fuel
Government through the Ministry of Energy
and Mineral Development acquired 300 acres of land Namwabula Estate-Nsujjumpolwe village, Kiringete Sub County along Mityana
road in Mpigi District, about 26Km from the capital Kampala city for
development of the KST.
In April 2022, the State Minister for
Industry David Bahati and the State Minister for Minerals, Peter Lokeris presented
a statement on the high fuel prices in the country saying the Government would
take punitive action including revocation of trade licenses against fuel dealers
Upon completion, the Kampala Storage
Terminal facility is expected to be the second largest fuel storage facility in East
Africa region, next to Kipevu Storage Terminals in Kenya.
will keep up to 320 million litres of refined petroleum products to be received
as import through Kenya and Tanzania and later from the planned refinery in
Hoima. It will also have an extension terminal to serve as a storage facility
for Liquefied Petroleum Gas (LPG).
Ochola's journalism career begun from Radio King 90.2 FM in Gulu around 2009, and Radio Rupiny 95.7 Fm under Vision Group in 2012. He also reported for Mighty Fire 91.5 Fm, Kitgum in 2015 before joining Wizarts Foundation in 2017.
He has been reporting for Uganda Radio Network (URN) since 2017 before being posted as Bureau Chief Kitgum, and latr Gulu between 2018 - 2021. Currently, he reports from Parliament.