July 24, 2024
The Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Dr Mustapha Abdul- Hamid, has called on stakeholders in the petroleum downstream sector to embrace the Cylinder Recirculation Model (CRM) of LPG distribution to ensure that the policy meets its intended target.
Speaking at the 2024 Ghana International Petroleum Conference (GHIPCON), Dr Hamid encouraged participants to reassess their opposition to the CRM, emphasising that the policy was in tune with modern trends and would create more jobs within the value chain than the filling station concept.
Dr Hamid also highlighted the importance of adapting to changing times, citing the global shift towards the CRM model and urged industry players to focus on strategies that would drive growth, efficiency and sustainability in the sector, rather than resisting change.
"I think that the best thing for us to do as humans is to adjust to the changing tides and times.
And so, I would urge you to reassess your opposition to the CRM policy because all across the world, very few countries still adopt the filling station concept as far as LPG distribution is concerned,” he said.
The two-day conference is organised by the NPA, in collaboration with the Ghana Chamber of Bulk Oil Distributors (CBOD), the Association of Oil Marketing Companies under the auspices of the Ministry of Energy.
It is being held on the theme: “The Petroleum Downstream: Building a Future for Growth, Efficiency and Sustainability”. It brought together regional and international petroleum downstream experts, leaders and innovators to bring to the fore the industry’s perspective and guidance on issues like industry best practice, government and regulatory policies, operational strategies, innovation, financing and investments.
The Minister of State at the Ministry of Energy, Herbert Krapa, noted that the government had achieved its dream of setting up a Petroleum Hub with the swearing in of the board of the Petroleum Hub Development Corporation.
He said a $12-billion agreement had also been signed for the development of the first phase of the Petroleum Hub project at Jomoro in the Western Region.
“This phase includes constructing a 300,000 barrels per day capacity refinery, a petrochemical plant, storage tanks, jetties and port infrastructure, ancillary infrastructure and social amenities,” he said.
Mr Krapa said the nation's accessibility to LPG increased from 25 per cent in 2020 to 40 per cent at the end of 2023.
“And through this period, the government launched the National LPG Promotion Programme, with LPG cookstoves and related accessories being distributed to first-time users,” he said.
He said the government had initiated the phased implementation of the cylinder recirculation model for the distribution and marketing of LPG, with which everyone could replace an empty canister with a filled new one.
He said the government’s efforts, coupled with a robust policy framework, had incentivised the private sector to invest more and contribute significantly towards realising the policy target of 50 per cent LPG use by 2030.
