The Regional Strategy on development of regional refineries addresses all aspects of petroleum distribution system in the region including refineries and storage facilities in a holistic way in order to improve its effectiveness and efficiency.
The Strategy has considered the existing distribution system and storage capacities made recommendations for improvement, enhancement and expansion in order to facilitate provision of efficient and reliable delivery of oil products throughout the region.
The Strategy reveals the clear interdependence between various forms of infrastructure in the delivery of petroleum products.
Key recommendations of the Strategy are:
- Develop a new refinery in Uganda in order for the oil discovered in Uganda to provide optimal benefits to the region;
- Accelerate planned upgrading of the Mombasa refinery; and
- Improve the handling, transportation, storage and distribution facilities in the Region for efficient and economic distribution of petroleum products
In 2011, the Government of Uganda undertook a feasibility study for a refinery development. The study made recommendations in regard to its capacity (60,000 barrels of oil per day expandable to 120,000 barrels per day) to meet a growing regional market, Refinery configuration (Hydrocracker/Coker), the refinery location and financing options (Public Private Partnership with the Private being 60% and the Public share 40%).
The Government of Uganda has extended the East African Community Partner States to participate in the public share of the investment. The commissioning of the 60,000 barrels per day refinery is expected to be during the first half of 2017.