‘Kingfisher Gas Power Project to Generate Shs114 Bn Annually’
Uganda plans to generate 80 megawatts of electricity from associated gas at the Kingfisher oilfield, aiming to reduce gas flaring and generate $30 million in annual revenue. The project also includes producing liquefied petroleum gas to provide a cleaner alternative to traditional cooking fuels.
Why it matters
This initiative represents a significant step in Uganda's energy strategy to monetize natural resources while addressing environmental and domestic energy needs.
KIKUUBE: Uganda expects to earn about Shs114 billion ($30 million) annually from electricity generated using associated gas at the Kingfisher oilfield, President Yoweri Museveni has said.
Museveni said the gas, produced alongside crude oil, would power an 80-megawatt generation plant instead of being routinely flared.
“Here, we said no to flaring gas,” Museveni said during a visit to the Kingfisher development in Buhuka, Kikuube District.
“We shall be using the gas to generate electricity, up to 80 megawatts at Kingfisher alone.”
The projected capacity is equivalent to nearly half the 180-megawatt output of the Nalubaale hydropower station in Jinja.
Museveni said the proposed plant could generate about $30 million, or Shs114 billion, annually for the project, although actual revenue will depend on its operating rate, electricity tariff, gas supply and power-purchase arrangements.
Associated gas emerges from petroleum reservoirs during crude oil production.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in