Ghana has begun the training of technical staff of its two power distribution companies – Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) – for the installation and commissioning of net metering Solar PV systems in the West African nation.
The country is looking at building the capacity of at least 180 technical staff of ECG and NEDCo for the net metering Solar PV project.
The capacity building programme is expected to be in batches, with the first batch of the training commencing next Monday, February 12, 2024, at the Don Bosco Technical Training School at Ashaiman, a suburb of Greater Accra.
Speaking at the launch of the training, the deputy Director for Power at the Ministry of Energy and deputy Co-ordinator for the Scaling-up Renewable Energy Programme (SREP), Ing. Seth Mahu, on behalf of the Minister of Energy, said the training programme was the third component of SREP.
According to him, the training aims to equip the technical staff of ECG and NEDCo with the requisite skills to support Ghana’s efforts to achieve the target of universal electrification by 2024 and also increase renewable energy penetration to 10% in the generation mix by 2030.
He said the Government, through the Ministry of Energy, had done a lot in the renewable energy space.
“We have developed net metering tariff methodology to encourage prospective renewable energy investors,” he added.
He stated that the country aims to use the net metering project to create market for the renewable industry.
“With the net metering project, if anybody invests in solar systems, you will be able to know how much power you are allowed to export to the grid and how much of energy you can take from the grid,” he explained.
He urged the staffs of ECG and NEDCo who are undergoing the training to pay attention and learn to ensure the success of the net metering project.
The Director for Renewable Energy and Energy Efficiency at the Energy Commission, Kofi Agyarko, noted that the net metering would give Ghanaians an opportunity to sell power to ECG and NEDCo and buy it back when they need it.
“If you have solar PV systems without storage batteries, it means that after 5 p.m. when the sun is set you will not have power generated from your solar system and that would be a good time to buy back what you pushed to ECG or NEDCo,” Mr Agyarko said.
He said PURC had developed a billing system that takes into consideration how much you sold to ECG or NEDCo and how much power you bought from either ECG or NEDCo.
Mr Agyarko said the aim of the net metering Solar PV project is to help Ghanaians to reduce their electricity consumption.
Mr Kofi Agyarko, Director for Renewable Energy and Energy Efficiency at the Energy Commission, Ghana.
He said Ghana was looking at reducing the load on the national grid by 64 megawatts so as to minimise transformer overloads.
The deputy Head of Mission and Head of Cooperation, Embassy of Switzerland in Ghana, Dr. Haeberli Simone, said that the Ghana Solar Photovoltaic-based net-metering project has real potential to positively support the economy and the people of Ghana, as Switzerland’s support under the SREP is meant to encourage SMEs and households to invest in solar installations on their premises.
Dr. Haeberli Simone, Deputy Head of Mission and Head of Cooperation, Embassy of Switzerland in Ghana
Also, the project would contribute to lower emissions and make a positive contribution towards reliable energy provision in Ghana.
The Government of Ghana, on 25th May 2022, signed a grant agreement of $69.88 million.
The project is funded by African Development Bank (AfDB), the Climate Investment Funds (CIF) and Switzerland’s State Secretariat for Economic Affairs (SECO).
Source:https://energynewsafrica.com
A Kenyan legislator for Embakasi East, Hon. Babu Owino, is calling for the impeachment of the country’s Cabinet Secretary (CS) for Energy, Davis Chirchir, for the tragic gas explosion in Embakasi which claimed the lives of 10 people and left several severely injured on Friday, February 2, 2024.
Hon. Owino accused Chirchir of negligence, alleging that the CS failed to ensure proper regulation and oversight, despite the company in question not having been issued a trading licence.
“I came here to get answers from the Cabinet Secretary irrespective of our political parties because when we are here, we are representing the people of Kenya.
He ought to have followed up and known that this company that is not issued a licence to trade is proceeding to trade,” Owino said during Parliamentary proceedings on Thursday.
Owino also criticised the Energy CS for failing to comply with the summons issued by the Senate.
“It’s an insult … for a CS not to obey the orders, the summons given by this honorable senate,” Owino asserted.
He further questioned the credibility of Chirchir as a witness, suggesting that his refusal to adhere to the summons raised concerns about his reliability and accountability calling for his immediate impeachment.
“And, therefore, CS David Chirchir has proven to be an unreliable witness who on the witness stand should be impeached,” Babu said.
He also noted the consequences of the explosion, highlighting the mounting medical bills and suffering experienced by the affected families.
“Our people are suffering, bills are accumulating in the hospitals.
It’s a really sad state of affairs to be here because probably a CS feels he is more important than other members here,” he added.
Chirchir and Daniel Kiptoo, who heads the Energy and Petroleum Regulatory Authority, have been summoned by the Senate Energy Committee again after failing to appear before the Committee on Wednesday, February 14.
They are expected to appear before the committee on Tuesday, February 20, to provide clarification on the Embakasi explosion incident.
The committee members are considering the possibility of censuring both officials due to what they perceive as professional negligence and a poor approach to handling the situation.
Senator Wahome Wamatinga, who chaired the committee, noted the gravity of the matter and expressed disappointment at their failure to attend the emergency session.
Chirchir, in a letter of apology to the committee, explained his absence was due to travel abroad.
Source:https://energynewsafrica.com
Kaduna Electric, one of the power distribution companies in the Federal Republic of Nigeria, has officially announced a ten per cent increase in salaries across all staff categories, effective February 2024.
Dr Umar Hashidu, the Chief Executive Officer, made this announcement during a recent meeting with the management team.
The salary adjustment comes as a strategic response to the imperative of motivating the staff, aimed at elevating the company’s overall performance despite the considerable challenges it currently faces.
He underscored that the decision also addresses the prevalent cost of living crisis in the country.
Furthermore, Dr Hashidu emphasised the Board and Management’s conviction that the salary increment would serve as a catalyst, inspiring staff to redouble their efforts to navigate the company through its current challenges.
He reiterated the Board’s unwavering commitment to prioritising staff welfare as highlighted by the Board’s Chairperson, Ms Rahila Thomas when she led other Board members on a visit to the company recently.
He hinted that the initial salary adjustment is part of a broader initiative.
Dr Hashidu acknowledged the precarious state of the Nigerian Electricity Supply Industry (NESI), describing it as being on life support.
Notably, Kaduna Electric faces challenges in meeting market obligations and has shown a lackluster performance in compliance with NERC performance indices.
Despite these challenges, Dr Hashidu expressed confidence that the issues confronting Kaduna Electric are surmountable with collective effort.
He urged the staff to approach their duties with diligence, citing the positive growth trajectory observed in energy sales in January as a promising indicator.
Dr Hashidu encouraged staff to maintain this momentum until the company achieves a positive turnaround.
Source: https://energynewsafrica.com
The Board Chairman of the Tema Oil Refinery (TOR), Mr David Adomako, has resigned from the board, citing the recent development in the refinery for his grounds
Mr Adomako tendered his resignation to the Presidency in a letter dated 24 January 2024 which was copied to the Minister for Energy.
According to him, his resignation is borne out of the withdrawal of the proposed partnership between TOR and Tema Energy and Processing Limited which the Board deemed to be in the best interests of resuscitating an ailing and distressed TOR.
“I am unfortunately not in the position to dedicate the necessary time and energy required for a renewed pursuit of a solution for the company, which in my opinion will be an onerous task without a determinable outcome.
“I am also concerned that such a solution will require a level of harmony between staff, management, board of directors and all other stakeholders that sadly appears to have failed us in this most recent iteration of restructuring efforts. In the absence of government financial support for the rehabilitation of the refinery, and given the difficulty in attracting significant private sector investment in the plant, the board has instructed management to present a wider range of alternative strategic options for TOR, whilst also continuing its ongoing efforts to secure investors interested in the rehabilitation of the refinery.
“I wish the very best for the good people of TOR, and in particular the ordinary working staff, in the immediate future and beyond,” Mr Adomako said.
There has been a misunderstanding between a section of TOR workers and management over the handling of a strategic partnership between TOR and Tema Energy and Processing Limited formerly Torentco Asset Management Limited.
The workers, led by the General Transport Petroleum and Chemical Workers Union (GTPCWU), have accused the management and the Board of failing to ensure transparency in the whole process.
The development, recently, resulted in the Board interdicting two executives of GTPCWU– Serwah Duncan-Williams and Anthony Koomson.
Last week, the National Labour Commission, the agency responsible for resolving disputes between workers and employers in the Republic of Ghana, wrote to the Acting Managing Director of TOR to respond to complaints received from the national executives of the General Transport Petroleum and Chemical Workers’ Union over the interdiction of their two executives.
In a letter signed by Dr. Bernice A. Welbeck, the Executive Secretary of NLC, said, “The Commission writes to forward a copy of the letter to you and request your response to the complaint by the Union before the close of work on February 13, 2024.
“Treat as urgent given the union’s decision to begin picketing on 13th February 2024,” a portion of the letter said.
Source: https://energynewsafrica.com
UAE state-owned oil company the Abu Dhabi National Oil Company (ADNOC) and integrated energy company, BP, have established a joint venture (JV) in Egypt to advance gas development in the north African country.
ADNOC will assume a 49% stake while BP retains a 51% interest.
The formation of the JV, subject to regulatory approvals, is anticipated to be finalized in H2, 2024.
Under the terms of the agreement, bp will transfer its stakes in three development concessions and exploration agreements in Egypt to the newly formed JV.
The concessions include Shorouk (10%), North Damietta (100%), and North El Burg (50%), along with exploration agreements for North El Tabya, Bellatrix-Seti East, and North El Fayrouz. Additionally, ADNOC will provide cash contributions for potential growth endeavors.
Musabbeh Al Kaabi, ADNOC’s Executive Director for Low Carbon Solutions and International Growth, stated that the JV aligns with the company’s efforts to decarbonize operations and spearhead an inclusive energy transition.
This milestone “will enhance Egyptian energy security and economic potential,” he said.
Source:https://energynewsafrica.com
Nigerian President Bola Ahmed Tinubu has signed the country’s Electricity Act (Amendment ) Bill 2024 into law.
The Bill was passed by the House of Representatives on July 27, 2023, and the Senate on November 14, 2023.
The Electricity Act (Amendment) Bill, 2024 seeks to address the development and environmental concerns of host communities, and sets aside five per cent of the actual annual operating expenditures of power generating companies (GENCOs) from the preceding year for the development of their respective host communities.
The Act further provides that the funds set aside for the development of host communities will be received, managed, and administered for infrastructural development in the host communities by a reputable trustee/manager to be jointly appointed by the respective GENCO and their host community.
The Act guarantees the de-centralisation and de-monopolisation of Nigeria’s electricity generation, transmission, and distribution at the national level. It authorises states, companies, and individuals to generate, transmit and distribute electricity.
Under the Act, states are empowered to issue licences to private investors who in turn would be permitted to set up and operate mini-grids and power plants within the State.
The licences obtainable include: electricity generation licence (excluding captive generation); electricity transmission licence; electricity distribution licence; electricity supply licence; electricity trading licence; and system operation licence.
These licences enable private entities to participate in different aspects of the electricity value chain, thereby promoting competition and encouraging innovation to solve the growing energy needs of Nigeria.
Furthermore, the Act stipulates that without a licence, a person may operate or construct an undertaking for the purpose of generating electricity not surpassing 1 megawatt (MW) in total at a site, or an undertaking for the distribution of electricity with a capacity not surpassing 100 kilowatts (KW) in total at a site or such other capacity as the Commission may determine.
In other words, it is possible for a person to construct, own, or operate an undertaking for the purpose of generating electricity or an undertaking for distributing electricity without obtaining a licence, provided that such construction, ownership, or operation undertaking shall not exceed 1MW or distribution undertaking shall not exceed 100KW.
However, the Act prohibits inter-state and transnational electricity distribution.
Genser Energy Ghana Limited, an independent power producing company with a vision for community and social responsibility, has funded the construction and furnishing of a new block for the Jungle Warfare School of the Ghana Armed Forces at Akyem Achiase in the Eastern Region.
The new building, christened the Otwasuom Osae Nyampong VI Block, is the brainchild of the Board Chairman of Genser Energy, Nana Osae Nyampong VI.
It will serve as accommodation for the demonstration company of the school, providing them with essential amenities for comfortable living and training.
The building is equipped with wardrobes, beds with mattresses, washrooms and a water reservoir.
The ceremony was a momentous occasion attended by military officials, community and religious leaders, and representatives of Genser Energy.
Commissioning the block, Brigadier General Anthony Ntem, Commander, 17 Army Signal Brigade, expressed gratitude on behalf of the chief of defence staff, emphasising the importance of maintaining the newly constructed block for long-term use.
“We are very grateful for this kind gesture.
I want to entreat the soldiers to put the place to proper use.
Maintain the place so that it will last long for us,” he stressed.
For his part, Nana Osae Nyampong VI spoke passionately about Genser’s commitment to uplifting local communities, stressing the importance of empowering Ghanaian institutions like the Jungle Warfare School.
“Ghana can only be built by Ghanaians.
What you see here is an effort by Genser to make the soldiers comfortable.
Thank you for giving the company [Genser] the opportunity to serve you.
The block will help with efficient training,” the board chairman of Genser Energy added.
For Lt. Col. Jacob Codjoe, the commanding officer of the Jungle Warfare School, the new block was a game-changer.
He expressed his excitement and gratitude, highlighting how the improved facilities would positively impact the lives of the trainers and officers.
He said: “We are really thrilled to have this block and so grateful to Genser Energy for this kind gesture.
It has come at the right time because where my trainers were staying was extremely bad and this has really transformed our lives.
We need more blocks to accommodate our officers and trainers.”
Lt. Col. Codjoe gave praise to the speed and efficiency that was employed to finalise the project – the building was conceived, completed and fully furnished within three months.
With a citation presented to Nana Osae Nyampong VI for his dedication to strengthening the educational landscape of the school, it was clear that the contribution of Genser Energy had not gone unnoticed.
The significance of the Otwasuom Osae Nyampong VI Block extended far beyond its physical structure.
It became a symbol of partnership between the private sector and the military, demonstrating how corporate entities like Genser Energy could play a crucial role in supporting national defence efforts.
By providing essential infrastructure and amenities, Genser Energy had not only improved the quality of life for the soldiers but also enhanced the efficiency of their training programmes.
The commitment of Genser Energy to education, sports, community development and sustainability exemplifies its dedication to creating a brighter future for all Ghanaians.
Source: https://energynewsafrica.com
The President of Ghana, Nana Addo Dankwa Akufo-Addo, has appointed energy and petroleum policy expert, Dr. Mohammed Amin Adam, as the country’s new Minister for Finance in a reshuffle on Wednesday.
Dr. Amin replaced Mr Ken Ofori-Atta, the immediate past Finance Minister.
Prior to his appointment, he was the Minister of State at the Finance Ministry.
In 2017, President Akufo-Addo appointed him as the Deputy Minister of Energy and served in that capacity until 2021 when he was reassigned to the Ministry of Finance.
Dr. Amin is the founder of Africa Centre for Energy Policy (ACEP), a natural resources governance think tank.
Profile Of Amin Adam
Dr. Mohammed Amin Adam is an Economist, Energy and Petroleum Policy Expert, and Resource Governance Advocate.
He holds a PhD in Energy and Petroleum Economics (2014) from the University of Dundee, Center for Energy, Petroleum and Mineral Law and Policy (CEPMLP), United Kingdom.
He obtained a Master of Philosophy Degree in Economics (2002), and Bachelor of Arts (Honours) Degree in Economics (1998) both from the University of Cape Coast.
He has also studied various topics and received certificates from the Columbia University, Columbia Center for Sustainable Investment, in New York (Extractive Industries and Sustainable Development), EcoMod Modeling School, Washington D.C. (Computable General Equilibrium Modeling with GAMS), University of Texas at Austin, Centre for Energy Economics, Bureau of Economic Geology, Jackson School of Geosciences, USA (New Era Oil, Gas and Power Value Creation), Harvard University (Executive Leadership), and the International Academy of Leadership, Gummersbach, Germany (Human and Civil Rights).
Political Management
Dr. Adam has gained significant experience in political management and administration spanning over 25 years and held various responsibilities including as Mayor of Tamale, Deputy Northern Regional Minister, Deputy Energy Minister, and Minister of State at the Ministry of Finance.
He is currently the Member of Parliament for Karaga in the Northern Region; and served on the Finance Committee, Defence and Interior Committee and Roads and Transport Committee of Parliament.
He has been playing key roles in the Government of President Nana Akufo-Addo. At the Ministry of Finance, he is Chairman of the Budget Implementation Committee, Chairman of the Arrears Clearance Committee, Co-Chairman of the Economic Policy Coordination Committee; and Member of the Financial Stability Council.
Whilst serving as Deputy Minister for Energy, he was Chairman of the National Energy Transition Committee produced Ghana’s Energy Transition Framework; and was Chairman of Gold for Oil Committee.
Professional Life
In private life. Dr. Adam was the Founder and Executive Director of the Africa Centre for Energy Policy (ACEP).
Before then, he was the Africa Coordinator of the Africa Against Poverty Programme, IBIS Ghana; National Oil Coordinator at ISODEC, and provided various Consulting services to many organizations including the World Bank, International Labour Organization (ILO), Africa Centre for Economic Transformation (ACET), OXFAM, NRGI, PIAC and Ghana EITI among others.
He had Short Term Appointments with the World Bank on the Efficiency (Cost-Benefit Analysis) of projects funded with petroleum revenues in Ghana (October 2013 to July 2014), and on energizing Ghana’s economic growth (18th October 2012 to 29th March 2013).
He also served as Strategic Advisor to STAR Ghana which managed Pooled funds from DFID, USAID, DANIDA and the EU (January 2014 to December 2014).
He also served on the Board of private companies including the Board of ZOIL Oil Waste Services Limited (March 2015 to November 2016), and the Board of Weston Oil and Gas Fund (May 2014 to December 2016).
Dr. Adam is globally recognised for his expertise across varying subjects which earned him membership in global initiatives.
He was appointed as a Member of the Advisory Committee of the International Finance Corporation-World Bank Disclosure to Development Program (April 2018), a Member of the International Advisory Board of Open Contracting Partnership (August 2014), a Member of the International Advisory Board of the Natural Resources and Community Review (August 2014), Member of the International Group of Experts that designed ‘’the Open Contracting Initiative’, in Washington DC; facilitated by the World Bank Institute (2012); and Member of the International Group of Experts that designed ‘’the Open Government Partnership’ in Washington DC; facilitated by the State Department of the United States Government (2011).
He has provided advisory services to African countries among which are Kenya, Liberia, South Sudan, Sierra Leone, Mozambique, Tanzania and Uganda.
Dr. Adam held membership of other global professional bodies including the International Research Collaborative on Natural Resource Governance, Inequality and Human Rights, Law and Society and Columbia School’s Executive Session on the Politics of Extractive Industries, a group of renowned global Experts in the area of Resource management.
Source:https://energynewsafrica.com
The President of Ghana, Nana Addo Dankwa Akufo-Addo, has relieved two deputy ministers of energy of their positions and appointed two legislators to replace them in a reshuffle exercise barely a year to the end of his administration.
The deputy ministers are William Owuraku Aidoo, the Member of Parliament (MP) for Afigya Kwabre South in the Ashanti Region, and Andrews Kofi Agyapa Mercer, MP for Secondi in the Western Region.
Owuraku Aidoo has been at the Energy Ministry since 2017, while Agyapa Mercer has been there since 2021.
However, President Akufo-Addo has reassigned Egyapa Mercer to the Ministry of Tourism, Arts and Culture as a Minister of State Designate.
The new faces for the deputy energy minister positions are John Kobina Abam Aboah Sanie, MP for Mpohor-Fiase in the Western Region, and Collins Adomako Mensah, MP for Afigya Kwabre North in the Ashanti Region.
Collins Adomako Mensah worked with financial institutions such as Ghana Commercial Bank and Fidelity Bank as deputy manager and relationship manager before entering Parliament in 2021.
Source:https://energynewsafrica.com
The Nigerian National Petroleum Company (NNPC) Limited has met with a consortium of South Korean investors to explore investment prospects within Nigeria’s gas market.
According to media reports, the discussions are expected to enable the signing of a memorandum of understanding (MoU) which will pave the way for greenfield investments in Nigeria’s gas sector while driving various natural gas projects in the country.
“The talks were aimed at deepening the drive of NNPC Ltd. to tap into the nation’s vast gas resources to be a supplier of clean and affordable energy to the global market,” NNPC said in a press statement.
The meeting, which took place in Seoul, included manufacturing and engineering conglomerate Daewoo.
It aligns with Nigeria’s efforts to attract foreign direct investments to expand its gas industry.
Source: https://energynewsafrica.com
South Africa’s power utility company, Eskom, has rejected the allegation by African National Congress (ANC) secretary-general Fikile Mbalula suggesting that sabotage is behind the current heightened stages of rolling blackouts.
Mbalula made the allegation on his official “X” account formerly twitter, according to a report by Sabc.
However, his comment attracted a response from Eskom Head of Generation, Bheki Nxumalo, who rejected the claim.
Nxumalo said the authorities are still investigating the allegation.
“The security cluster is within the stations, we are doing investigations within our coal space everywhere.
So these are ongoing things to look for intelligence.
But currently, what’s happened that’s led to this, you’ve seen it in the biggest changes at Medupi and a series of pipe leaks that also happened between Thursday and Friday as well.
“So there are ongoing investigations and security scans that we are undertaking,” Nxumalo added.
Source:https://energynewsafrica.com
Saudi Arabia has decided to halt its oil capacity expansion plans as a result of the global energy transition, Prince Abdulaziz bin Salman, Minister for Energy revealed this on Monday.
According to him, the kingdom has plenty of spare capacity to cushion the oil market.
The Saudi government on Jan. 30 ordered state oil company Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12 million barrels per day (bpd), 1 million bpd below a target announced in 2020, which was set to be reached in 2027.
“I think we postponed this investment simply because…we’re transitioning,” Prince Abdulaziz bin Salman said at the IPTC petroleum technology conference in Dharan.
He added that Aramco has other investments to make, including in oil, gas, petrochemicals and renewables.
Saudi Arabia has said it aims to reach net zero emissions by 2060 and Aramco says it wants to reach net zero emissions from its own operations by 2050.
Prince Abdulaziz said that the kingdom had a “huge cushion” of spare oil capacity in case of major disruptions to global supplies caused by conflict or natural disasters.
Under cuts agreed between the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, Saudi oil production is about 3 million bpd below its 12 million bpd maximum sustainable capacity, making it the world’s biggest holder of spare capacity.
“We are ready to tweak upward, downward, whatever the market necessity dictates,” Prince Abdulaziz said.
He criticised a decision coordinated by the International Energy Agency in 2022 to release oil from emergency reserves to cool global prices after Russia’s invasion of Ukraine.
“Why should we be the last country to hold energy capacity, or emergency capacity, when it is unappreciated and when it is not recognised?”
Aramco chief executive Amin Nasser, speaking at the same event, said he expected oil demand to increase to 104 million bpd this year and to 105 million bpd in 2025, downplaying expectations that it will peak any time soon.
Source: https://energynewsafrica.com
Nigeria has constituted an inter-ministerial committee to look at the ways and means of achieving a steady and sustainable gas supply to power generationing plants to meet both the domestic and the industrial need of Nigeria.
The inter-ministerial committee was formed by the Minister of State for Petroleum Resources, Ekperikpe Ekpo, and the Minister for Power, Chief Adebayo Adelabu, after a meeting between the two ministries in Abuja, capital of Nigeria.
“At the meeting, Ekpo outlined the challenges causing the low supply of gas to the thermal power plants to include decade of gas legacy debts and vandalism of gas resources infrastructures in the Niger Delta Region.
“He also listed domestic pricing of gas in dollars, among others.
He expressed his willingness to work harmoniously with any individual, organisation and agency to solve these challenges,” a statement issued by the Petroleum Resources Ministry said, quoting the Minister.
In his remarks, Chief Adelabu stated the need for the two ministries to work collaboratively and solve the problem of low gas supply to the thermal power plants.
According to him, this was in order to achieve an uninterrupted power supply in the country.
“There is absolutely nothing that can be done in Nigeria without stable power,” he noted.
Members of the committee were drawn from the ministries of petroleum resources and power, regulatory agencies, operators and critical stakeholders in the gas and power sectors.
The meeting was witnessed by some directors in the ministries of petroleum resources and power.
Nigeria has over 206 trillion cubic feet (TCF) of natural gas but has been unable to tap the resource due mainly to lack of investment in the sector, leading to inadequate gas transportation infrastructure.
Even the inadequate infrastructure is routinely vandalised.
Source: https://energynewsafrica.com
The Liquefied Petroleum Gas (LPG) Marketers Association of Ghana has commended the country’s petroleum downstream regulator, the National Petroleum Authority (NPA), for reviewing the mode of LPG importation by making it go through open competitive bidding process.
According to the association, the open competitive tender for LPG import would reduce the price of the product on the market, which would in turn boost the consumption level.
It would be recalled that the NPA, in a release, said it held a successful maiden competitive bidding on Monday, 29th January 2024.
The NPA said the winning tenderer submitted the lowest premium of USD30.39/MT for the four lots that were tendered for, between March and June 2024.
“This is a significant drop from the current premiums which range between USD67/MT and USD98/MT. Each lot is about 20,000 metric tonnes,” the regulator said.
Commenting on the review of policy on LPG importation, the Vice-President of LPG Marketers Association of Ghana, Gabriel Kumi, said when this policy is properly executed, it would reduce the cost of LPG.
“We, as an association, have consistently called on government and the NPA to ensure that the price of LPG comes down, so that the ordinary Ghanaian can use LPG.
We can all benefit from the enormous benefits that come with consuming more LPG,” he said in an interview with Accra-based Joy News .
He added that the consumption of LPG had declined significantly over the years; hence, this new move would help increase consumption.
Checks by this portal indicate that LPG consumption in 2021 was 345,477,075 kilogrammes while in 2022, consumption was 305,076,209 kilogrammes.
Data sourced from NPA website shows that between January and October 2023, LPG consumption was around 259,375,659 kilogrammes.
Source:https://energynewsafrica.com
