Uganda National Oil Company (UNOC) is looking for a transaction advisor to guide the development of a multi-user storage terminal in Kampala.
The state-owned company acquired land on the outskirts of Kampala for a $70-million terminal that will serve as a distribution centre for imported petroleum products.
The terminal will have an initial capacity of 60 million litres, and will be expanded, based on demand, to 138 million litres.
Uganda’s strategic reserves are expected to increase to 90 million litres.
The country currently has just one storage facility in Jinja, with a capacity of 30 million litres.
The new facility will also be a distribution centre for products from the country’s proposed refinery to consumers in Uganda, western Kenya, northern Tanzania and Rwanda.
It will be a delivery point for the planned Hoima–Kampala pipeline and the planned Eldoret–Kampala pipeline, as well as serve as the starting point for the planned Kampala-Kigali pipeline.
UNOC wants the transaction advisor to bring on board a strategic partner who will control 49 per cent shareholding in the joint venture project.
“The firm will provide advice on the development of business models, financing framework, ownership structure and bankability of the project, including the ability to source funds for the project,” said UNOC in a statement.
In Tanzania, the government is seeking private investors to construct storage facilities, specifically in Mtwara, after opening the port for handling petroleum products last month.
The Kenya Pipeline Company (KPC) has invested $52 million in four oil storage tanks in its Nairobi depot, with a total capacity of 133 million litres of fuel, which have more than doubled the storage capacity of diesel and super petrol from 100 million litres to 233 million litres.
The facilities will increase KPC’s total storage capacity to 745 million litres from 612.3 million litres.
“Besides guaranteeing security of supply of petroleum products, the new tanks will also increase tank turnaround at Kipevu resulting in more ullage [the air space between the oil surface and the top of the tank] at Kipevu Oil Storage Facility and reduction of demurrage charges,” said KPC managing director Joe Sang.
The Kenya Ports Authority has contracted China Communications Construction Company to build a new terminal at a cost of $393.6 million to supplement Kipevu and Shimanzi.(Source: The eastafrican)