Inside Uganda’s multi-billion dollar refinery project

Uganda is emerging as a significant player in the oil and gas sector in East Africa, with the country making critical infrastructural investments to establish itself as a hub for energy production and export. In a recent interview with CNBC Africa, Raja Jandhyala, Founder and President of Yaatra Ventures, shed light on the progress of Uganda's refinery project and the anticipated impact on the region. Jandhyala highlighted the key principles driving their investment in the project, emphasizing energy transition, value addition to domestic resources, import substitution, and attracting private sector investment. These principles align with Uganda's goal to address energy poverty, create jobs through value addition, reduce the import bill, and attract foreign direct investment. The partnership between private investors and the government of Uganda aims to develop the refinery with a combination of private and public sector funding. Jandhyala mentioned the importance of confirming the upstream Final Investment Decision (FID) to secure crude supply for the refinery project. After four years of negotiations, Uganda achieved upstream FID in February 2022, marking a significant milestone towards realizing the refinery project. As the project progresses, both the private investors and the government are actively engaged in discussions to advance the development work and ensure the project's successful completion. The refinery project holds the promise of driving economic growth in Uganda, creating job opportunities, and supporting energy transition from biogas to LPG. With the government's commitment to the project and ongoing negotiations with stakeholders, Uganda's oil and gas refinery project is poised to transform the country's energy landscape and position it as a key player in the East African oil and gas industry.