The Uganda National Oil Company (UNOC) has said studies have indicated a positive cost-benefit analysis for the Albertine Graben Refinery adding up to $3.3 billion annually to the country’s national GDP of $27 billion and up to $8.2 billion to the national capital formation.
Further, Uganda expects the $4 billion refinery to benefit the balance of payments annually by $591 million with a fiscal impact of $804 million mainly from savings resulting from savings from the current petroleum and diesel imports.
According to the General Manager Dr. Michael Mugerwa the 60,000 bpsd refinery will cater for all the current gasoline demand and about 30 percent of the diesel demand with the rest to be imported through Kenya and Tanzania. There will also be excess petroleum with sales expected to western Kenya, northern Tanzania,South Sudan and the eastern DRC.
The refinery is also expected to produce LPG, Jet A-1 fuel, sulphur and heavy fuel oil. With upgrades in future the refinery is also projected to produce fertilizers, plastics and petrochemicals.
The final FEED is expected in August 2021, while the FID is targeted for June 2022.
Besides Uganda which has 40% shareholding other East African states are expected to have a stake of Tanzania (20%) and Kenya 5%. The other JV partners Total and CNOOC will also have a stake.
The Albertine Graben refinery is being constructed by Albertine Graben Refinery Consortium (AGRC) comprising of YAATRA Africa, Nuovo Pignone International Srl – a Baker Hughes company, LionWorks Group and Saipem p.A.
Dr Michael Mugerwa was speaking earlier today during the 7th Annual Oil and Gas Convention (OGC2021).