The Ministry Of Energy And Mineral Development
 Japan’s Toshiba Corporation has signed a memorandum of understanding (MOU) with Uganda’s Ministry of Energy and Mineral Development (MEMD) on a comprehensive partnership in geothermal power.The agreement will see the parties collaborate in power generation projects, including personnel development, according to statement released Sunday by the energy ministry.The parties signed the MOU during the Tokyo International Conference on African Development 2016 (“TICAD VI”), that ends today in Nairobi, Kenya.Toshiba will collaborate in the development and supply of major equipment for a geothermal power plant, create operation and management guidelines, and cooperate in personnel development, the statement said.“The development of Uganda's geothermal energy resources is in line with our energy policy objectives of increasing power generation capacity and diversifying our energy mix in order to achieve least cost, affordable and stable energy supply”, said Dr. Fred Kabagambe-Kaliisa, Permanent Secretary at the Ministry of Energy and Mineral Development, at the signing ceremony. Read more ▪  MOE: Gov’t invites 3 Nigerian companies for production sharing agreements Ministry of Energy and Mineral Development announced completion of evaluation of bids for the first competitive licensing round and invited the successful companies to negotiate Production Sharing Agreements (PSAs) for the different oil blocks. Four companies were shortlisted and invited to negotiate for PSAs for blocks and they are; Armour Energy Limited (Australia) for the Kanywataba Block; Walter Smith Petroman Oil Limited (Nigeria), for the Shallow and Deep Plays in the Turaco area; Oranto Petroleum International Ltd (Nigeria) for the Shallow and Deep Plays in the Ngassaarea and Niger Delta Petroleum Resources Ltd (Nigeria) for the Shallow and Deep Plays in the Ngassaarea. According to a statement issued by the Ministry, Government will negotiate five PSAs with these companies and issue five exploration licenses, upon successful negotiation. The five PSAs are one for the Kanywataba block and two for the shallow and deep plays of the Turaco and Ngassa blocks respectively.Negotiations for the five PSAs will commence and are expected to be concluded. Read more ▪ Energy ministry in partnership with Access Uganda Solar Limited has launched a 10MW solar power plant Soroti District, aimed at increasing power access in the eastern district.The power produced from the $19m (about Shs64b) solar power plant is expected to be added to the national grid in July and will power 40,000 homes and businesses in an area where electricity access is still very low.Speaking at the groundbreaking ceremony in Soroti, State minister for Mineral Development Peter Lokeris said the country still faces energy challenges and yet industrialisation that the government seeks to expand requires more energy and investment.“Government priorities such as Agro-processing can only get lifted off the ground with sufficient and reliable energy. I have confidence in the project because our country enjoys an all year round sunny climate which is the resource for solar power,” Mr Lokeris said in a statement. Read more ▪  MOE: Uganda refutes power import claims by Kenya Kenya power regulators said they have doubled their power exports to Uganda, a senior official from ministry of Energy has refuted the claims. The Daily Monitor sister newspaper Business Daily reported that Kenya had since more than doubled its electricity sales to Uganda.In the report, it was stated that a total of 26.56 million Kilowatt-hours (kWh) were being exported to Uganda and Tanzania up from 12.63 million kWh indicating a 110.2 per cent growth.In an interview with ministry of Energy Permanent Secretary Kabagambe Kaliisa, it emerged that there has never been such a commercial transaction between the two neighbouring countries. He said: “There are no direct commercial power exports from Kenya to Uganda.” Read more ▪ MOEMD: Low income earners to benefit from Shs5b energy programme The Ministry of Energy has launched a Clean Start programme that focuses on offering financing solutions for low income earners that want to pay for high-quality, affordable clean energy.The programme, launched in partnership with the United Nations Capital Development Fund, targets more than 40,000 beneficiaries who are expected to make a shift to clean energy. The project is estimated to cost Shs4.7b which will be distributed among about 10 selected financial institutions.“We shall distribute about $200,000 (about 734m) to financial institutions to help them lend out to people who can acquire energy systems they are interested in using. Interested financial companies will send their proposals to the ministry.” said Mr James Baanabe Isingoma, the acting commissioner energy efficiency and conservation department. Read more ▪  MOEMD: Cleaner low sulphur fuel diesel on market low Sulphur fuel diesel with 50 parts per million (ppm) sulphur content will be on market. Vivo Energy Uganda managing director, Hans Paulsen, said the reduction of sulphur content will help to protect our environment.“It is our duty to ensure we are doing business in a manner that protects and preserves our environment, not only for the current but also for the future generations. As oil marketers we need to be responsible as we go about our business reducing harm to people and the environment at all points of our interaction with them. Complying with the sulphur content reduction in diesel, as per the legal notice, highlights that fact that we are being responsible to the environment and to citizens in the communities where we operate,” he said. “For motorists who use diesel their maintenance costs will be lowered because they will not need to change their diesel particulate filters (DPF) as often as they do. Having won the first cargo that will mark the start of using LSFD in Uganda and Kenya this is a proud step.” Paulsen added. John Friday, Assistant Commissioner Petroleum Supply, ministry of energy and mineral development said: “As a government we are pleased with this step in the right direction. Read more ▪ Fuel prices in Uganda remained largely unchanged despite the tumbling of oil prices internationally. International prices have been plummeting to trade at about $60 (about sh166,200) a barrel, down from $115 (about sh318,550).“Some fuel stations are selling a litre of petrol at sh3, 770, while others are selling at sh3,750, yet we all know that prices have fallen globally,” said Ben Musaala, a taxi driver in Kamwokya, a Kampala Suburb. Musaala faulted institutional and regulatory weaknesses in the Government for the challenge, saying several players have taken advantage to hike prices even when they buy it cheaply.However, the commissioner for petroleum supply in the Ministry of Energy, Rev. Frank Tukwasibwe, dismissed the concerns, saying the drop in international prices is only for crude oil and not its products.“Uganda does not import crude oil, but its products. We all know that the reduction in prices is basically for crude oil, which does not necessarily translate into reduced prices for oil products such as petroleum and diesel at the pump. Read more ▪ Energy ministry revokes Fuelex licence The Ministry of Energy closed down Fuelex filling stations, following revocation of the company’s operating license.According to Rev. Frank Tukwasibwe, the commissioner for petroleum supply, the proprietors were selling fuel whose origin was not known. All officially imported fuel bears the required markers of certification which Fuelex feul did not have.“We warned them several times, but they refused to heed to our warnings. We do not know how they were bringing in the fuel,” Tukwasibwe said. Dunstan Luwaga, a URA officer attached to the electronic cargo trucking system unit, told the New Vision that the fuel could have been smuggled in with help from some energy ministry and customs border officials.He added that the Government loses a lot in taxes because such fuel does not go through the channels stipulated in the law.The assistant commissioner for petroleum supply, John, said evading taxes creates imbalances in the market as the cheating company is able to lower its retail market rate.Read more ▪  MOE: Govt to close stations selling adulterated fuel, says official Government will close stations involved in selling adulterated fuel, a Ministry of Energy official has said.Rev Frank Tukwasibwe, the Commissioner of Petroleum Supply Department, said such a measure together with sensitisation of customers on quality fuel will help reduce adulteration levels in country.“We are planning to publicise names of fuel stations and if a certain station is named consistently, then we will be compelled to close it,” he said while closing the quality fuel campaign in Kampala.He said the Energy ministry and Uganda National Bureau of Standard (UNBS) will first publicise the names of those fuel stations, give them a grace period to sort themselves out and if they do not comply with quality standards, they will be closed. Read more ▪ Increased Investor Cash Drives Resources The Ugandan extractive industry notched up impressive achievements in 2013. Many of the successes came in the oil and gas sector like the issuance of the production licence to CNOOC in the last quarter of the year.However most notbale was the renewed interest by local and international investors to inject money into extracting the reputed vast minerals spread across the country.In the same manner the government, through public private partnership, showed interest in joinin hands with investors to exploit these natural resources. During the First Uganda Mining, Energy, Oil & Gas Conference that met in May last year, Zachary Baguma, Assistant. Commissioner Geology, Ministry of Energy said Uganda has over 20 minerals. Read more |