The Chamber of Bulk Oil Distributors (CBOD) in the Republic of Ghana has thrown its weight behind Sage Petroleum (Quantum Terminals) and Blue Ocean for their investments in LPG distribution system under the Cylinder Recirculation Model programme to boost LPG access.
According to the chamber, the two entities are Ghanaian companies that have been legally registered under the laws of Ghana and complied with the National Petroleum Authority (NPA) Act 691, Act 2005.
The two entities together have made an investment of US$30 million in LPG bottling plants, storage facilities, and cylinders, as well as a US$70 million investment within the next 18 months.
The chamber’s defence follows a statement issued last week by the LPG Marketing Companies which announced their decision to cease business with Sage Petroleum and Blue Ocean’s depots in the Tema enclave.
The action by the LPG Marketing Companies was in protest by Sage Petroleum and Blue Ocean’s decision to register new businesses and participating in CRM programme.
The LPG Marketing Companies deemed the action by the two entities as an unhealthy competition because the LPG they sell in their retail outlets are purchased from the same companies that want to take over their market.
However, reacting to the issue, CBOD, in a statement, mentioned that GOIL had acquired a licence and had constructed and commissioned two bottling plants in Tema and Kumasi, adding that Ghana Gas had also acquired a licence and it intended to establish its own bottling plant.
The chamber questioned whether it is illegal for both institutions to participate in the LPG market.
The chamber described the LPG Marketing Companies’ decision to cut ties with Sage Petroleum and Blue Ocean as counterproductive to the LPG promotion efforts by the government, NPA and all stakeholders.
While urging all stakeholders to engage in constructive dialogue to resolve the current issue and foster collaboration within the industry, it encouraged the LPG Marketing Companies to collaborate with the regulator and all relevant stakeholders, stressing that working together is the key to ensuring nationwide access to safe LPG by 2030.
Source: https://energynewsafrica.com