Kabaleega Industrial Park (KIP) in Hoima District, Bunyoro Region will contribute approximately $4.9b per annum to the National Gross Domestic Product (GDP), according to the Uganda National Oil Company (UNOC) in a statement to the press this (Monday) afternoon.
KIP that sits on a 29.57 sq.km piece of land to be developed into an oil and gas industrial park is UNOC’s key midstream projects.
“Preliminary economic modeling by UNOC of KIP with its wide range of industries and commercial activities supported by the [Kabaleega] international airport and our national road network is expected to yield up to USD 4.9bn per annum to National GDP,” the statement says.
However, this figure excludes revenues generated by the planned oil refinery in the same area.
KIP comprises Kabaleega International Airport which is still under construction, the crude oil export hub beginning of the East African Crude Oil Pipeline (EACOP), Uganda Greenfield Refinery, polymer and fertiliser industries, light/medium industries, agro-processors, warehousing and logistics.
The land in the park will also be for commercial, retail, Health Centre 4 and residential spaces, according to UNOC continuing that KIP will also assist Uganda in adding up to 11.9b per annum to the National Capital Formation.
The park is also expected to improve Uganda’s Balance of Payments by USD 849m per annum, create a fiscal impact of USD 1.2b per annum and create 35,000 job opportunities.
UNOC revealed that the Front –End Engineering Design (FEED) for the refinery was completed and the Environmental and Social Impact Assessment (ESIA) for the refinery is near completion.
“The process of acquiring a Joint Venture Partner (JVP) who will partner with UNOC to run the park is on. A proposal submitted by COEGA Development Corporation SA was evaluated and is moving to negotiations. The land allocation policy is also being finalised to enable potential investors to apply for the land in the park. A paper will be resubmitted to Cabinet for approval on the operationalisation of the Policy,” reads part of the statement.
How KIP will operate
At production, crude oil will be pumped from the Tilenga and Kingfisher oil fields in Buliisa and Nwoya and Kikuube districts respectively to the refinery that will produce 60,000 barrels per day at peak at Kabaale village in Kabaale sub-county, Hoima district which has the right of first call.
The remaining crude oil will be pumped into the crude oil export hub, the beginning of the East African Crude Oil Pipeline (EACOP) of 180,000 barrels per day which ends at Tanga in Tanzania for export to the international market.
Main products from the refinery
Petrol (gasoline), diesel, aviation fuel, Liquid Petroleum Gas (LPG) and Heavy Fuel Oil (HFO) which will be refined petroleum products will be transported by a multiple product pipeline approximately 211km from Hoima to Kampala Storage Terminal located at Namwabula in Mpigi district for distribution to the bigger market in Kampala.
The HFO and LPG will be transported by road and rail to the markets in Uganda and beyond.
Industries relying on by-products from the refinery as their feedstock are also expected in the park including fertiliser complex which uses HFO as feedstock and petrochemical industry for the manufacture of plastics, packaging, pipes, adhesives automobile and others.