By Peter Abanabasazi
The Ugandan government through Uganda National Oil Company- UNOCÂ is in negotiations to produce gas as an independent project from the oil industry.
Alex Nyombi, the director development and production at Petroleum Authority of Uganda- PAU says during the production of oil, the oil products will come out with gas products which will need to be processed since the Ugandan oil and gas policies do not permit the burning of this gas.
He says discussions are ongoing to identify a proper developer of the gas processing plant with the discussion being led by UNOC.
He says Kingfisher Development Area will produce 20000 LPG per year while Tilenga will produce 80000 tonnes LPG per year.
He says that the gas project has been proven commercially viable once they invest in it.
Nyombi adds that Ugamda consumes 20000 tonnes of LPG adding if the production start, it will end the importation of gas and also have a surplus of 80000 tonnes which can be exported and fetch revenue to the country.
He made the remarks during the visit of the Kingfisher oil fields by the Minister of Finance Matia Kasaija to access the progress of the oil developments. Kingfisher is being developed China offshore oil company CNOOC.
However, Minister Kasaija says that he was impressed with the developments adding the progress gives hope of having the first drop of oil by 2025.
Kasaija said that the issue of oil and gas is a matter of life and death to the Country and nobody can at any level be allowed to sabotage the developments.
