The National Petroleum Authority (NPA) has highlighted the difficulties surrounding the supply and storage of Liquefied Petroleum Gas (LPG) in Ghana.
During an interview on Joy News’ PM Express Business Edition on Thursday, October 4, Abass Ibrahim Tasunti, the NPA’s Director of Regulation and Planning, pointed out that a significant factor contributing to occasional supply delays is the lack of adequate storage tanks for LPG.
He clarified that the NPA’s responsibilities include continuously monitoring stock levels to ensure that the country maintains sufficient reserves. However, he acknowledged that while reserves do exist, they are not always enough to satisfy demand.
“The issue was about access to the product. As I said, the reserve was in the tank. It was just signing off to say that we have agreed on the quantities that were discharged that caused a delay in selling the product today, for example,” he stated.
A significant difference between LPG and other petroleum products, like petrol and diesel, is their storage capacity.
While petrol and diesel can be stored for as long as seven weeks, LPG has a much shorter storage duration.
Abass Tasunti revealed, “We don’t have adequate storage tanks for LPG, so LPG, you can go as far as maybe two weeks, three weeks to last.”
He attributed the lack of sufficient storage infrastructure to minimal investment in LPG storage tanks.
To tackle this issue, the NPA has implemented initiatives like the Tender Program, aimed at ensuring a consistent supply of LPG.
Abass Tasunti noted that this program secures a reliable flow of the product by managing the timely importation process.
“Last week, we did a tender for the supply for November and December. So already the process has come on for companies to deliver for November and December consumption,” he noted, assuring Ghanaians that the current stock would last for the rest of October.
Private sector participation has been vital in expanding LPG storage capacity over the years. Tasunti acknowledged that several private companies have invested in new storage terminals, particularly in Tema.
“In Tema, for example, two new ones came on board recently. So with time, companies are building, and we have had a request from other companies to build LPG terminals,” he shared.
He also noted that, at one point, Ghana relied solely on Tema Oil Refinery (TOR), but now, there are five LPG terminals in the Tema area.
“We can do with more,” he added, emphasizing the need for continued investment in this area.
Tasunti also addressed recent disruptions in LPG supply, citing a delay caused by the discharge process.
“We had product that was LPG which was going to last us about a month. The peculiar thing with LPG, unlike petrol and diesel, is that for petrol and diesel, you could have sometimes more than seven weeks to last of products,” he explained.
He clarified that the delay was caused by the process of verifying and reaching agreements on the quantities being unloaded.
In addition to the issues related to importation and storage, local production of LPG at Atuabo has played a vital role in ensuring a steady supply.
Abass Tasunti recognized that there were recent challenges at Atuabo but assured the public that these have now been addressed.
“We have Atuabo, which is producing… they had some challenge, but they have come on board now,” he stated.
Abass Tasunti stressed the NPA’s ongoing commitment to monitoring LPG stocks and maintaining a reliable supply through investment and strategic planning.
“Our work is to always monitor the stocks and ensure that we have a plan that ensures that we have continuous LPG coming into the system,” he affirmed.
As Ghana continues to expand its LPG infrastructure, Abass Tasunti believes that further investment in storage will be critical to overcoming current supply challenges and ensuring energy security for the country.