President Museveni: Bans Lake Victoria Fuel Transport, Citing Spill Risk

• President Museveni has prohibited the transportation of petroleum products across Lake Victoria due to environmental spill concerns.
• The directive emphasizes a shift towards pipelines and railways for fuel logistics, citing the EACOP's route around the lake as a precedent.
• This policy change impacts previous initiatives, including a project with Mahathi Infra Services that utilized Lake Victoria for fuel transport.
• Uganda is simultaneously expanding its strategic petroleum reserves with a new 320-million-litre Kampala Storage Terminal in Mpigi.
• The new terminal will significantly boost Uganda's current storage capacity, which stands at approximately 159.7 million litres against a monthly consumption of 240 million litres.

President Yoweri Museveni has issued a definitive directive, prohibiting the movement of petroleum products across Lake Victoria to safeguard the critical freshwater resource from potential contamination.

President Yoweri Museveni has issued a definitive directive, prohibiting the movement of petroleum products across Lake Victoria to safeguard the critical freshwater resource from potential contamination. This significant policy shift, announced during the groundbreaking ceremony for the new 320-million-litre Kampala Storage Terminal in Namwabula, Mpigi District, underscores the government's heightened concerns regarding environmental safety in fuel logistics. The President explicitly rejected proposals to connect the new terminal to existing petroleum infrastructure at Kawuku, a plan that would have involved transporting fuel over the lake.

Museveni articulated his strong reservations, stating his discomfort with the idea of petroleum traversing Lake Victoria, emphasizing the severe consequences of a potential accident. He highlighted that such an incident could irrevocably damage one of Uganda's most vital natural assets. This stance marks a clear departure from previous considerations that had positioned the lake as a viable route for fuel supply into the country.

The President's remarks signal a strategic reorientation in Uganda's approach to fuel transportation, advocating for pipelines and railways as the preferred and safer alternatives. He drew a direct parallel to the East African Crude Oil Pipeline (EACOP), a 1,443-kilometre project designed to transport crude oil from Hoima through Tanzania to the Tanga export terminal. The EACOP's route was deliberately chosen to bypass Lake Victoria, a decision Museveni cited as a precedent for avoiding catastrophic environmental risks.

This directive contrasts sharply with earlier government initiatives that had actively promoted the use of Lake Victoria for importing fuel. As recently as 2016, President Museveni engaged with investors from Mahathi Infra Services regarding a proposal to transport petroleum products from Kisumu, Kenya, to Uganda via oil tankers on the lake, alongside plans for a dedicated strategic storage terminal. This "Lake Victoria fuel logistics project," which later involved Lake Victoria Logistics (formerly Mahathi Infra), had become an integral part of Uganda's petroleum supply infrastructure, with the Ministry of Energy acknowledging its role in diversifying supply routes as late as May 2026.

President Museveni's latest pronouncement inevitably raises critical questions about the future operational viability of existing infrastructure designed around Lake Victoria fuel transport, particularly the 70-million-litre facility at Kawuku. This facility, a component of the earlier Mahathi Infra initiative, now faces an uncertain role within Uganda's revised petroleum supply chain. The directive also comes as Uganda actively seeks to bolster its energy independence and reduce its reliance on road transport and external supply routes.

The new Kampala Storage Terminal, with its substantial 320-million-litre capacity, is central to this broader strategy. Irene Pauline Batebe, Permanent Secretary in the Ministry of Energy and Mineral Development, underscored the terminal's importance in strengthening Uganda's strategic petroleum reserves. She emphasized that robust in-country storage is essential to shield the nation from external shocks and ensure energy security, highlighting the critical role of facilities like the one being inaugurated.

Uganda's current total petroleum storage capacity stands at approximately 159.7 million litres. This includes a 30-million-litre facility operated by UNOC in Jinja, the 70-million-litre Mahathi facility in Kawuku, and an estimated 60 million litres held by various oil marketing companies. Given that Uganda consumes roughly 240 million litres of petroleum products each month, the existing infrastructure provides limited buffer against supply disruptions.

The addition of the new 320-million-litre Mpigi terminal will significantly enhance the nation's strategic reserves. Upon completion, this facility alone will provide storage equivalent to approximately 30 days of Uganda's current national petroleum consumption. This expansion is a crucial step towards safeguarding the country's energy supply, especially in light of the new policy direction that prioritizes safer, albeit potentially more complex, inland transportation methods over waterborne options.

This presidential directive signals a significant policy shift for petroleum logistics in Uganda, effectively halting waterborne fuel transport on Lake Victoria due to environmental concerns. Companies involved in fuel supply, transport, and infrastructure development, particularly those with existing or planned operations on Lake Victoria, must immediately reassess their strategies and compliance frameworks, focusing instead on pipeline and railway alternatives as preferred by the government.

Source: Original reporting from Kampala.