NPA issues 6 licenses; as implementation of CRM begins

• Posted on March 8, 2019
• by Ellsamwise King
• Comment

The National Petroleum Authority has issued six licenses for the establishment of cylinder bottling plants. This is to kick start the process for the implementation of the Cylinder Recirculation Model (CRM).

The NPA has planned to begin the pilot project by April for consumers to use the LPG retail outlets as distribution centres and not for filling of cylinders.

NPA Boss Hassan Tampuli told a stakeholder engagement in Accra that the over 500 LPG filling stations classified as high risks will be converted into cylinder distribution centres.  He said the low-risk LPG stations will be used for the supply of Autogas with improved safety standards.

“We are open to further inputs from the general public so that at the end of the day we will roll out what will be good and acceptable to for the industry and consumers. We envisage that at the end of this exercise we will add not less than 4500 jobs to the job market from the bottling to the distribution to re-redistribution to bulk haulage,” he said.

The NPA is anticipating that the CRM will increase LPG penetration from the current 25 per cent to 50 per cent by 2030.

Deputy Energy Minister, Dr Mohammed Amin Adams gave the assurance that government is mindful of the legal provisions that require local participation in the petroleum industry.

“We are oblivious of the implications of local content for in the development of this industry. The local content law stipules that a venture like this should be fully reserved for Ghanaian equity participation. So those who are afraid that foreigners will come and take over the LPG industry please be reminded that this is for Ghanaians. You can look for funding elsewhere but ownership as far as equity will be Ghanaians.

Second Lady Samira Bawumiah who is also a Global Ambassador for the Clean Cooking Alliance hailed the CRM as job creation and environmental protection initiative.

“The CRM will encourage the safe use of LPG in the domestic, commercial and industrial places. Under the new policy, the LPG marketing companies will ensure that the cylinders are in good condition before they are handed over to the end user. Let us advocate for LPG usage and safety issues especially in the wake of explosions. No one should lose their lives or a loved one because of the use of LPG. Let us partner the NPA to make the Cylinder Recirculation Model a success,” she said.