AEW: GOIL PLC Plans To Expand LPG Storage Capacity By Additional 12,000 Metric Tons Amid Growing Demand

GOIL PLC, Ghana’s largest indigenous oil and gas marketing company, is set to add 12,000 metric tons of liquefied petroleum gas (LPG) storage capacity within the next year, anchored by a $5 million investment, according to Group CEO and Managing Director Edward Abambire Bawa.

Speaking during a panel discussion on the topic “Monetising LPG to Enhance the Value of the Barrel in Africa’s Inland Markets” at African Energy Week (AEW): Invest in African Energies 2025, Bawa said the company is spearheading a transformative expansion in LPG storage capacity to meet rising domestic demand and strengthen the country’s energy security.

Guided by the 2024 baseline consumption of 340 million kilograms of LPG sold nationally, the expansion seeks to bridge critical supply gaps, given that current storage capacity covers only two to three weeks of national demand.

“This storage limitation is both a challenge and a prime investment opportunity. Expanding infrastructure is fundamental to unlocking the full monetisation potential of LPG, benefiting producers, distributors, and end consumers alike,” Bawa noted.

GOIL’s latest initiatives reflect its broad commitment to infrastructure development. These include the rollout of multiple Autogas stations across five regions, including Accra and Kumasi, as well as the inauguration of a polymer-modified bitumen terminal in Tema to support related energy needs.

The company’s distribution network spans the entire country, servicing diverse consumer segments while driving sustainable growth and strategic investment partnerships. Recognising the challenges posed by limited LPG infrastructure—especially in rural areas—GOIL remains committed to expanding access through well-designed policies, increased investment, and innovative business models, including digital payment solutions that align with household cash flows.

Mohammed Amin Naderian, Head of Energy Economics & Forecasting at the Gas Exporting Countries Forum (GECF), stressed LPG’s critical role in sustainable development:
“Our research at GECF highlights that LPG is a vital component within the broader narrative of gas’s role in sustainable development. Monetising gas is not just about producing more volumes, but about creating value along the entire supply chain—from production, storage, and transportation to distribution and ultimately the household consumer. In Africa particularly, market creation and capacity development are two sides of the same coin.”

He added: “We caution against mistaking policy as the solution itself. Policy acts as a catalyst to break poverty and energy poverty traps, accelerating monetisation through industrialisation and job creation for Africa’s youth. However, poorly designed or inconsistent policies risk causing market distortions or sudden collapses. Stable, transparent, and well-structured regulations are essential to reduce investment risks and provide predictability for investors and consumers.”

Sebastian Wagner, Managing Partner at DMWA Resources, drew lessons from Rwanda’s successes, stressing the importance of stable regulations, transparent investor incentives, and innovative business models—such as digital payments tailored to household cash flows. He highlighted LPG’s growing role in Africa’s energy transition:
“LPG often flies under the radar compared to LNG, but it is gaining momentum through well-structured investments and government partnerships aimed at reducing gas flaring and capturing value.”

Adding a South African perspective, Sesakho Magadla, CEO of PetroSA, said:
“LPG demand in South Africa is largely driven by population growth and rising energy needs, yet infrastructure development continues to lag behind. Consumption stands at about 350,000 metric tons annually, with peak demand reaching up to 550,000 metric tons in winter and summer.

“New investments in reverse flow pipelines and terminals in Durban are therefore crucial to meeting national demand. But it is only through close collaboration between the public and private sectors, with projects such as SANPC and Avedia Energy, that we can enhance LPG importation and distribution capacity, ensuring greater market stability and access.”

Source: https:// energynewsafrica.com