The Ministry of Energy and Mineral Development has signed on Tuesday signed a Memorandum of Understanding (MoU) with an Egyptian company Saad El Din Group, granting them permission for the development of Liquefied Petroleum Gas (LPG) equipment and supply.
The state Minister for Energy, Eng. Simon D’Ujanga on behalf of Uganda and Dr. Muhammed Saad Eldin on behalf of the Saad El Din group signed the MoU. Dr. Muhammed further stressed that the group is set to invest over USD 10M to set up a factory in Uganda that will manufacture gas cylinders.
According to Dr. Muhammed, the group is looking forward to manufacturing a total of 50,000 cylinders every year once the land is secured. The cylinders will be on the market within 6-12 months and we shall be delivering them at every door step of the likely users.
The Minister on behalf of the government of Uganda welcomed the development, noting that this will cut costs of gas cylinders which in turn increase the uptake of renewable energy, particularly gas, in the country as compared to other sources with negative environmental impact such as charcoal and firewood.
The minister further noted that, a total of 92,000 square kilometers of forest cover is destroyed every year due to charcoal and firewood burning.
“Uganda currently imports 15,500 tons of gas which has registered an increase in gas consumption. It shows that we are now getting away from the forest however, we must facilitate the consumption further by doing away with major constraint which has been the high costs of cylinders” said D’Ujanga.
On the other hand, the minister of state for minerals, Peter Lokeris noted that Saad El Din Group comes in at a time when the country needs to step up its environmental protection mechanisms. “In addition to job creation for Ugandans, the gas itself is clean, it doesn’t waste the environment and will save the health of Ugandans as well as saving the forests that are cut for firewood and charcoal” said Lokeri