KAMPALA, Sept. 18 (Xinhua) — Uganda on Thursday started construction of a 320-million-liter petroleum storage terminal in the central district of Mpigi, as the country seeks to strengthen fuel security and supplies to domestic and regional markets.

Ugandan President Yoweri Museveni presided over the groundbreaking ceremony for the over-300-mln-USD Kampala Storage Terminal, which is being developed by the Uganda National Oil Company (UNOC), the state-owned company responsible for the country’s petroleum supply.

The terminal will more than double Uganda’s current estimated petroleum storage capacity of 160 million liters, which includes both public and private facilities, according to a statement issued by State House.

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

He said government intervention had helped reduce the cost of petroleum products, adding that the country must now plan for adequate strategic reserves.

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

The president said the new terminal should not be considered the final solution to Uganda’s storage requirements, stressing the need for larger facilities to meet future demand.

Minister of Energy and Mineral Development Monica Musenero said the terminal would serve as a strategic storage hub and strengthen Uganda’s petroleum supply chain.

“We welcome the commitment by UNOC to complete the project within 24 months, and the ministry will support the successful implementation of this project,” Musenero said.

She called for improved road connectivity to the terminal, particularly its link to the Mpigi Expressway, as well as the development of railway infrastructure to facilitate the transportation of petroleum products. ■