Summary:
- The Ugandan government, through UNOC, is negotiating an independent gas production project alongside oil developments, aiming to process gas by-products, and if successful, the initiative could eliminate gas imports, generate surplus for export, and contribute to national revenue, as highlighted during a visit by Finance Minister Matia Kasaija to the Kingfisher oil fields.
The Ugandan government, represented by the Uganda National Oil Company (UNOC), is currently engaged in negotiations to initiate an independent gas production project separate from the oil industry.
According to Alex Nyombi, the Director of Development and Production at the Petroleum Authority of Uganda (PAU), the production of oil results in the generation of gas by-products. Due to Ugandan oil and gas policies prohibiting the burning of this gas, discussions are underway to identify a suitable developer for a gas processing plant, led by UNOC.
Nyombi further elaborates that the Kingfisher Development Area is expected to yield 20,000 tonnes of Liquefied Petroleum Gas (LPG) annually, while Tilenga is projected to produce 80,000 tonnes of LPG per year. He asserts that the gas project has demonstrated commercial viability through proper investment.
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Highlighting the potential impact on the national economy, Nyombi notes that Uganda currently consumes 20,000 tonnes of LPG. If production commences, it would not only eliminate the need for gas imports but also create a surplus of 80,000 tonnes available for export, generating additional revenue for the country.
These remarks were made during a visit by the Minister of Finance, Matia Kasaija, to assess the progress of oil developments at the Kingfisher oil fields, being developed by the China Offshore Oil Company (CNOOC). Minister Kasaija expressed satisfaction with the ongoing developments, expressing optimism about witnessing the first oil drop by 2025. He emphasized the critical importance of the oil and gas sector to the country, declaring it a matter of national significance, with no tolerance for any actions that might sabotage the progress.
