NPA to Convert High Risk LPG Stations to Retail Outlets

The National Petroleum Authority (NPA) has disclosed that Liquefied Petroleum Gas (LPG) Stations that do not meet their safety standards would be converted into filled cylinder retail and distribution outlets.

This is in line with the Cylinder Recirculation Model policy which would soon be rolled out by the Authority.

Addressing the media yesterday in Accra, Mr. Hassan Tampuli, Chief Executive Officer of the NPA, said “existing stations will be classified into low and high risk based on their deficiency in meeting required safety standards. Those found to be high risk will be converted into filled cylinder retail and distribution outlets, and those found to be low risk dedicated to the supply of autogas only but with improved safety standards.”

The Authority is keen on rolling out the cylinder re-circulation model policy, despite demands from operators to relook at the policy.

This means that consumers will have to exchange empty cylinders for filled ones at exchange points when the module is rolled out.

Tampuli said the introduction of the module, is to ensure that 50 percent of Ghanaians have access to safe, clean, and environmentally friendly LPG stations, to increase domestic, commercial and industrial usage.

According to him, the recent explosions and accidents have been as a result of non-adherence to standards and laid down procedures, hence the introduction of the module.

He was optimistic that the module would provide opportunity for retailers to meet consumers at the point of their needs.

“Retailers would be provided with motorcades to enable them distribute to their consumers,” he stressed.

Background

President Akufo Addo, during a cabinet meeting in October last year, directed that henceforth the Cylinder Recirculation module of LPG distribution should be implemented.

The policy seeks to provide direction on marketing and distribution of LPG in a safe and efficient manner, and facilitate an increase in access to LPG nationwide.

Explaining the value chain, Esther Anku, the Chief Inspector at NPA, said “the proposed model would begin with the LPG Bulk Distribution Company (LBDC), whose responsibility would be to either import or buy LPG from local refinery or gas processing plants such as Tema Oil Refinery and the Ghana National Gas Company, and store it in their Bulk Storage Facility.”

She stressed that the LBDC would sell the LPG in bulk to the bottling plant for the sole purpose of filling empty cylinders or to the LPG Marketing Companies for bulk sale to consumers.

According to her, the LPG bottling plant would be responsible for filling empty cylinders for onward distribution to the LMCs.

“The Marketing companies would also be responsible for procuring, branding and maintaining the cylinders from the bottling plants to the retail stations or exchange points,” she said.

By: Emmanuel Yeboah Britwum