Global Gases Group will establish a Liquefied Petroleum Gas (LPG) storage facility and cylinder manufacturing and filling plants in Luzira, Kampala after signing a Supply and Purchase Agreement with the Government of Uganda.
The plant will produce 500,000 cylinders annually for consumers in Uganda in different sizes (3kg, 6kg and 12kg) plus another 2 million cylinders for the East African Community (EAC) market over a 20-year period.
Government hopes the facility, which is expected to be completed by 2026, will increase LPG usage across East Africa.
Ruth Nankabirwa, the Minister of Energy and Mineral Development, emphasized the global shift toward LPG as a sustainable energy source, urging Ugandans to adopt it as part of efforts to decarbonize the environment.
Nankabirwa also addressed stereotypes surrounding food cooked using LPG and encouraged the public to embrace the change.
Irene Batebe, the Ministry’s Permanent Secretary, believes the project can slow down adverse climate change as it promotes clean energy for cooking.
“There is a need to boost LPG usage as Uganda currently consumes about 35,000 tonnes of LPG annually, compared to Kenya’s 350,000 tonnes and Tanzania’s 250,000 tonnes,” Batebe said.
Deepak Mehta, the founder and CEO of Global Gases Group, says the UAE headquartered company has been involved in oxygen gas production for hospitals in Uganda and will soon start producing biogas and fertilizers from cow dung in Mbarara.
“Our LPG infrastructure project began in 2022 and once completed, will promote the use of clean cooking technology and reduce deforestation,” Mehta stated.
The agreement stipulates that the government, through the Energy Ministry, will distribute LPG cylinders via fuel stations before expanding the supply to regional offices. Local councils will assist in identifying beneficiaries for government-subsidized accessories through poverty mapping.
In July 2022, the Ministry initiated a nationwide campaign involving the distribution of LPG starter kits campaign, targeting over one million beneficiaries.
The initiative aligns with Uganda’s Energy Transition Plan (ETP), which was launched at the 2023 UN Climate Change Conference (COP28) in Dubai. The ETP seeks to provide universal access to modern energy and drive Uganda’s economic transformation in a sustainable manner.