French major TOTAL has applied for power generation licence from Uganda’s Electricity Regulatory Authority (ERA).
It wants to build a 146MW thermal power plant in Buliisa District, in the oil prospective region of Uganda.
Buliisa is bordered by Hoima District to the south and the Democratic Republic of Congo, across the Lake Albert to the west.
TOTAL is leading the $20Billion Uganda Albert Basin oil development project, which will include draining over a billion barrels of waxy crude and transporting them through a 1,444Km pipeline from Hoima to Tanga, the Indian Ocean port town in Tanzania.
The tentative cost of the power project is $117.4Million or 416BillionShs (Ugandan Shillings)
TOTAL is hoping to start the plant’s construction in 2019 if it receives ERA’s approval to generate power. “The project would be financed by 100 per cent shareholder equity”, the company says.
Although the project is, in part, to boost electricity supply in one of TOTAL’s most important African hydrocarbon portfolios, the power generated will be sold to Uganda Electricity Transmission Company Limited (UETCL), the country’s licensed sole buyer of electricity from power generation plants.
UETCL then sells the power it buys to electricity distribution companies such as Umeme and the Uganda Electricity Distribution Company Limited.