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Uganda is gearing up for a major economic boost as its Lake Albert oil projects move closer to production, with liquefied petroleum gas (LPG) expected to play a crucial role in the country’s energy expansion. The government, alongside industry giants TotalEnergies and the China National Offshore Oil Corporation (CNOOC), is advancing upstream oil developments in the Albertine Graben, where an estimated 6.5 billion barrels of crude oil have been discovered.
The Tilenga and Kingfisher projects, operated by TotalEnergies and CNOOC respectively, are central to Uganda’s oil ambitions. These projects are expected to produce a combined 230,000 barrels per day once fully operational. While crude oil exports via the East African Crude Oil Pipeline (EACOP) remain a priority, Uganda is also focusing on domestic energy benefits, including LPG production, which could reduce reliance on imported cooking gas and support industrial growth.
Despite progress, challenges remain. The EACOP pipeline, which will transport crude oil to Tanzania’s port of Tanga, has faced financing delays, potentially affecting Uganda’s export timeline. However, officials remain optimistic that the country’s oil sector will drive economic transformation, with LPG production offering a cleaner energy alternative for households and businesses.
Uganda’s oil and gas developments are expected to reshape the regional energy landscape, attracting investment and fostering industrialization. As the country moves closer to first oil production, the focus will be on balancing exports with domestic energy needs to maximize economic benefits.