By: Ahmed Mohamed Ahmed Hegazi - Business Development Leader, Energy and Chemicals, Schneider Electric East Africa

With Uganda announcing that its estimate of recoverable oil and gas resources has increased to 1.65 billion barrels, the country is one step closer commencing commercial production. It is an exciting time, indeed; an oil refining and industrial ecosystem has to potential to play instrumental part in building the nation’s economic future.

Historically, many resource-rich economies have relied heavily on exporting raw commodities while importing refined products at significantly higher cost. Uganda is breaking this cycle.

The Uganda Refinery Project, located within the Kabalega Industrial Park, Kabaale Parish, Buseruka Sub-county, in the Hoima District of Western Uganda, will process approximately 60,000 barrels per day from Tilenga and Kingfisher fields into petroleum products to meet regional demand and boost industrialisation.

Although modest compared to some of the world’s largest refineries, the project is strategically sized for Uganda’s current needs and future ambitions.

Importantly, the refinery is not being developed in isolation. The broader industrial park vision includes supporting infrastructure such as an airport, fertiliser production facilities, logistics capabilities, and digital infrastructure.

A regional energy opportunity

Uganda’s geographic position makes the oil refinery so much more fortuitous. As a landlocked country, surrounded by other inland economies such as Rwanda and Burundi, access to refined petroleum products has historically depended on imports routed through coastal nations.

Now Uganda has the potential on its own resources while as positioning itself as a regional supplier of refined petroleum products to neighbouring markets.

Significantly, the Uganda Refinery Project will not only bolster the country’s energy security posture but also save on reduced fuel imports which can then redirected into other critical sectors such as water infrastructure, transportation and industrial development.

Infrastructure beyond the refinery

As mentioned, the project is also expected to trigger significant secondary infrastructure investment. Industrial expansion requires reliable power while power generation, in turn, requires transmission networks, substations and energy management systems.

Furthermore, growing urban and industrial populations require water infrastructure, transport corridors, and logistics capabilities.

This interconnected growth model mirrors what has been seen in several emerging energy economies globally, where large-scale energy investments catalyse broader industrial ecosystems rather than functioning as standalone projects.

Building a lower-carbon future

At the same time, Uganda’s energy ambitions are developing in the midst of global environment which faces sustainability expectations, ESG scrutiny, and energy transition pressures.

Financing for oil and gas projects has become more complex, with investors and lenders demanding stronger environmental performance, operational efficiency and long-term resilience.

This creates a new challenge for refinery and infrastructure developers: projects must not only be commercially viable, but also digitally enabled, energy efficient, and aligned with evolving sustainability requirements.

Here, technology partners like Schneider Electric can deliver value beyond equipment supply:

• Convergence of electrification, automation, and digitalisation is now essential in modern refinery developments.
• Integrated platforms which combine energy management, process automation, and real‑time visibility improve reliability, reduce downtime, optimise energy use, and strengthen process safety.
• Digital technologies — predictive maintenance, advanced control systems, and digital twins — help operators cut risk and boost efficiency across the asset lifecycle.
• Designing facilities with scalability and interoperability from the outset.

The Uganda Refinery Project refinery may take several years to reach its full potential, but the country is certainly on the right path.

The combination of upstream production, refining capacity, regional export potential, infrastructure expansion and industrial development has the potential to deliver an East African success story.