Uganda has begun construction of a 320-million-liter petroleum storage terminal in the central district of Mpigi, as the country moves to strengthen fuel security and supply domestic and regional markets.

President Yoweri Museveni presided over the groundbreaking ceremony for the more than $300-million Kampala Storage Terminal, being developed by state-owned Uganda National Oil Company (UNOC).

The facility will more than double Uganda's estimated current petroleum storage capacity of 160 million liters, according to a statement issued by State House.

Museveni said expanding storage infrastructure was critical as Uganda develops its petroleum sector and seeks to improve the security and efficiency of fuel supplies.

“Now that we are moving well on developing our resources, we must plan for storage,” he said.

According to Energy and Mineral Development Minister Monica Musenero, the terminal would serve as a strategic storage hub and strengthen the country's petroleum supply chain.

UNOC has committed to completing the project within 24 months.