The National Petroleum Authority (NPA), is to roll out National Liquidated Petroleum Gas Policy, which has the goal of providing a minimum of 50% of Ghanaians with LPG for domestic, commercial and industrial use by 2030.
This model would increase safety and efficiency as it would lessen reliance on wood fuels, which produce unhealthy particulate matter that can lead to asthma and other respiratory health issues.
Speaking with the media at the NPA office, was the Chief Executive Officer, Mr. Alhassan S. Tampuli on the Cylinder Recirculation Model that is currently being implanted.
Cylinder Recirculation Model
The Cylinder Recirculation Model is built on the concept of cycling liquid petroleum gas (LPG) cylinders, which was illustrated by the metaphor of refilling empty coke bottles. Individuals will no longer personally own a cylinder, rather they will have to pay a one-time deposit for a cylinder which, when empty, will be exchanged for a different full cylinder at retail exchange locations.
A variety of cylinder sizes will be available to make LPG purchases possible across all income levels. Auto gas will still remain available for purchase, but only at refilling stations that are classified low-risk after comprehensive assessment using NPA standards. Stations that are classified as high-risk will be converted to solely distribute filled LPG cylinders.
The responsibility of the condition of cylinders falls upon LPG Marketing Companies, which will inspect them for leaks and other defects at bottling plants when being filled. This negates the risks of negligence which can occur when cylinders are personally owned, as individuals all too commonly simply place stones on top of the head of leaking cylinders.
Cylinders will be branded as to ensure that consumers and producers know the legitimacy of their condition. Cited was a potential recall plan for old cylinders.
Along with negating the risk of faulty cylinders, Mr. Tampuli and NPA Chief Inspector, Ms.Esther Anku, further announced that the NPA would increase proactive inspections and assist in creating better coordination between regulating bodies, including a number of environmentally focused agencies.
This model creates significant structural change, adding two new steps in the LPG value chain: LPG bottlers and the distributers of filled cylinders. While experiencing many benefits, due to these additional operating costs, consumers can expect marginal price increases.
However, these changes in the value chain are estimated to generate approximately 4,500 new jobs, with the total value chain having over 100,000 employees.
In response to the question if certain jobs would be eliminated due to restructuring, the NPA stated that jobs won’t necessarily be lost, rather certain jobs will be adopted into different roles within the value chain.
A primary challenge in this model’s implementation is infrastructure development. There are currently no LPG bottling plants in Ghana and approximately nine months are required for their construction. The NPA reassuringly stated that this model could start with even just one plant in operation, which they estimate to have within a year.
However, Ms. Anku quoted that “We are running a bit behind schedule.” Another challenge faced is regional imbalances, as the vast majority of petroleum related infrastructure is located in the southern regions of the country, especially along the coastline.
The NPA demonstrated the numerous benefits this model will have, specifically in regards to safety, efficiency, and environmental concerns, while being transparent with the challenges that will be faced throughout implementation.
The Cylinder Recirculation Model can be found successfully practiced worldwide, including several African countries such as Togo, Côte d’Ivoire, and Burkina Faso. With proper oversight and execution, Ghana can become the next African success of this model.
The NPA presented the point that the old model greatly increased the population’s access to LPG, but that it is now time for change and advancement.
Reported By: Sheila WILLIAMS & Andrew DAVID
