OIL CASH KING VITOL GOES BIG! Uganda’s Sole Fuel Importer Pumps Sh11.3Trn Into Mega Gas Project
Uganda’s sole fuel importation partner, Vitol, is flexing its financial muscle across Africa, backing a massive $3 billion (about Sh11.3 trillion) gas-fired power station and liquefied natural gas (LNG) import terminal in South Africa while simultaneously positioning itself at the heart of Uganda’s ambitious oil and infrastructure expansion plans.
The global commodities giant is part of a powerful consortium developing the mega energy project at Durban Port, one of South Africa’s busiest maritime gateways. The consortium includes Saudi Arabia’s ACWA Power, Vitol subsidiary Vivo Energy, and terminal operator VTTI.
The planned project will feature a 1,000 to 1,800-megawatt combined-cycle gas turbine power plant alongside LNG import infrastructure, giving Vitol a strategic foothold in a market targeting 16 gigawatts of new gas-fired generation capacity by 2039 as South Africa races to reduce its dependence on coal-fired power stations.
But while billions are flowing into South Africa, Uganda is already feeling the full force of Vitol’s growing appetite for African energy investments.
In one of the biggest energy financing arrangements in Uganda’s history, Parliament recently approved a proposal authorising the Uganda National Oil Company (UNOC) to borrow up to $2 billion (Sh7.12 trillion) from Vitol Bahrain E.C., cementing the company’s position as a major financier of Uganda’s oil ambitions.
The deal builds on an already lucrative relationship that began in August 2023 when government appointed Vitol as Uganda’s sole supplier of petrol, diesel and aviation fuel through UNOC. Full-scale operations commenced in July 2024 and the arrangement has since delivered stable fuel supplies, competitive pricing and generated profits estimated at $150 million (Sh534 billion) for UNOC.
Now the partnership is entering a far bigger league.
The $2 billion financing package is already bankrolling a series of strategic petroleum projects designed to transform Uganda into a regional energy powerhouse. More than $1.2 billion will be channelled into petroleum infrastructure, including the Kampala Storage Terminal, expansion of facilities at the Jinja Storage Terminal, acquisition of petroleum storage assets in Mombasa, development of the Uganda Oil Refinery, purchase of shares in the Kenya Pipeline Company and extension of the fuel products pipeline from Eldoret to Kampala.
The refinery project alone is expected to reshape Uganda’s energy future. Government, through UNOC, has partnered with UAE-based Alpha MBM Investments to construct a $4 billion refinery in Kabaale, Hoima District. The facility will process 60,000 barrels of crude oil per day and is expected to begin operations between late 2029 and early 2030.
An additional $800 million from the Vitol facility will be invested in national roads infrastructure considered critical to oil transportation and economic growth, reducing pressure on government finances while accelerating strategic projects.
The loan itself carries favourable terms by modern energy-sector standards. It runs for seven years with a two-year grace period and an effective interest rate of about 4.92 percent, based on the three-month SOFR benchmark plus a one percent margin. Government argues that the arrangement is highly competitive at a time when global financing for fossil fuel projects has become increasingly difficult to secure.
Finance Ministry projections indicate that projects funded under the facility could generate as much as $5.6 billion (Sh19.9 trillion) in revenues, significantly boosting Uganda’s petroleum sector and broader economy.
Meanwhile, Vitol’s South African venture signals that the company is not merely a fuel trader but is rapidly evolving into one of Africa’s most influential energy investors. The Durban project is expected to include LNG importation, gas distribution through pipelines, LNG trucking services for industrial customers and bunkering services for ships, creating a vast energy ecosystem stretching beyond electricity generation.
The twin investments highlight Vitol’s growing strategy of financing and developing large-scale energy infrastructure across Africa at a time when many traditional lenders are retreating from petroleum-linked investments due to climate and ESG pressures.
For Uganda, the message is clear: as the country races toward first oil and refinery development, Vitol is increasingly becoming one of the biggest financial engines driving the nation’s energy ambitions. From controlling fuel imports to financing multi-trillion-shilling infrastructure projects, the commodity giant is steadily entrenching itself as a central player in Uganda’s oil future.
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