Uganda to build petroleum distribution terminal and two new pipelines

pipeline uganda-shannonpatrick17 flickrThe construction of the two internal crude pipelines will require a total investment of US$185.4mn. (Image source: Shannonpatrick17/Flickr)The Ugandan government has announced plans to build a petroleum distribution terminal, along with two new oil pipelines, as it prepares for the construction of an oil refinery in Kabaale

Irene Batebe, petroleum officer in-charge of refining at the Uganda’s Petroleum Exploration and Production department (PEDP), said that a pipeline from the refinery would deliver oil products to the new terminal in Buloba, 10km west of Kampala, from where they will be redistributed to various commercial units throughout the country.

Batebe added that there was need to have distribution centres in major towns such as Mbarara, Gulu, Mbale or Jinja.

“A feasibility study on distribution and storage facilities for petroleum products from the refinery to respective demand centres is being conducted,” she said, adding that following the completion of this study, government would source for investors to undertake the pipeline construction.

The government plans to commission the first phase of the oil refinery in 2016, with capacity to refine 30,000 bpd, before upgrading it to 60,000 bpd in 2018, 120,000 in 2022 and eventually to 180,000 bpd as the maximum output.

Meanwhile, the government will also build two pipelines — the northern and the southern — to carry crude from the fields to the refinery in Kabaale.

According to the Ministry of Energy and Mineral Development sector performance report 2011/2012, the construction of the two internal crude pipelines will need an investment of US$185.4mn.

The Ministry said the piplelines project will be funded on a public-private partnership arrangement.

The northern pipeline is expected to be 96km long with a 16-inch diametre. It will evacuate crude oil from the northern oilfields in the Albertine Graben, mainly from Jobi in Nwoya district, Kasemene, Kigogole and other oilfields in Buliisa district, to the refinery.

This pipeline is expected to be the busier of the two since most of the oil discoveries are located in the northern hub. According to the report, the northern crude pipeline is estimated to cost US$132mn.

The southern pipeline, estimated to be 46km long with a diametre of 17.7 inches, will evacuate crude oil from fields like Turaco, King Fisher and others in the southern end of the Albertine Graben. This is estimated to cost US$53.4mn.

The pipelines will be constantly heated to enable crude to flow, since Uganda’s waxy crude solidifies at room temperature.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?