CNOOC Uganda Limited was granted a production licence by the Government’s Minisstry of Energy amd mineral development to develop the kingfisher Oil block among other prospects which are geared towards ensuring that production of oil and gas commences within the stipulated time frames and that the products from the oil blocks have assured market to generate the required revenues for all stakeholders. The Kingfisher facility struck a considerable volume of associated gas which CNOOC would like to convert to LPG for commercial purposes within the country and its immediate neighbourhoods.

Prior to commercialization undertakings, CNOOC Uganda commissioned this study for purposes of establishing the current LPG supply and demand trends in the country and the East African region including projections for the next ten years, (b) to identify existing distribution patterns and dynamics including legal and commercial regulations that govern the LPG industry, and (c) to recommend a strategic approach to CNOOC Uganda Limited which can be used to exploit the established trends, dynamics, patterns and regulations to successfully benefit from the production and sale of the LPG product.

Quest Energy Limited was contracted to undertake the study. The study was successfully undertaked using its technical team of highly experienced energy experts. Data was collected from the following stakeholders; LPG consumers, LPG Marketing Companies, LPG Bulk Consumers, External Players in the LPG market across the East African region among other vital stakeholders. Data was analyzed and interpreted based on the core study objectives to provide CNOOC Uganda with a more suitable direction and recommendations for the LPG business direction.