Uganda Boosts Clean Energy with Landmark LPG Agreement
By The Public Lens
Uganda’s government has signed a landmark Supply and Purchase Agreement with Global Gases Group.
This agreement establishes a Liquefied Petroleum Gas storage facility and cylinder manufacturing and filling plants in Luzira.
The initiative is part of Uganda’s broader push to reduce reliance on biomass for cooking and promote clean energy.
The project, expected to be operational by 2026, marks a significant step toward increasing LPG usage across Uganda and the East African Community.
Dr. Ruth Nankabirwa Ssentamu, Uganda’s Minister of Energy and Mineral Development, presided over the agreement signing.
She underscored the environmental and economic importance of transitioning to LPG for cooking.
LPG is the clean cooking energy of choice, but its adoption in Uganda has remained limited due to inadequate infrastructure, low volumes and restricted access, particularly in rural areas.
Global Gases Group will invest, construct, own and operate an LPG cylinder manufacturing plant, cylinder filling stations and distribution centers across Uganda.
The current household-level LPG usage stands at less than 1%, primarily in urban areas, while many families rely on charcoal and firewood.
This shift to LPG is essential for reducing deforestation and improving public health.
Uganda’s Third National Development Plan commits to reducing biomass energy used for cooking from 88% in FY 2018/19 to 50% by 2024/25.
The plan aims to increase clean energy usage for cooking to 50% by 2024/25.
Under the agreement, Global Gases Group will produce 500,000 LPG cylinders annually for Ugandan consumers.
Cylinders will come in sizes of 3kg, 6kg and 12kg.
Over 20 years, the facility will produce two million cylinders for the East African Community market.
The government plans to distribute cylinders through petrol stations and regional offices.
Eng. Irene Pauline Bateebe, Permanent Secretary of the Ministry of Energy and Mineral Development, welcomed the investment.
This investment addresses environmental challenges posed by traditional biomass usage.
Uganda lags behind regional counterparts in LPG consumption, using around 35,000 tons annually.
Kenya consumes 350,000 tons and Tanzania 250,000 tons.
There’s significant opportunity to increase LPG uptake and reduce reliance on wood fuels.
This investment supports Uganda’s Energy Transition Plan, modernizing the energy sector and promoting sustainable economic growth.
Uganda launched its Energy Transition Plan at COP28 in Dubai, aligning with global climate change mitigation efforts.
Deepak Mehta, Global Gases Group Founder and CEO, expressed commitment to Uganda’s cleaner energy future.
The partnership began in 2022 and will reduce tree-cutting and promote clean cooking technologies.
The Luzira facility will have a broader regional impact, enabling the East African Community to adopt clean cooking solutions.
A pilot project launched in July 2022 distributed LPG starter kits to over one million beneficiaries.
LPG is recognized for cleanliness, affordability, efficiency and sustainability, ideal for households and industries.
This initiative ensures a cleaner, healthier and more sustainable future for Uganda.
