The CEO of the NPA, Hassan Tampuli explains that the plan is to regulate the program and improve standards.

“There is a stage in the implementation regime; the total cylinder recall. We will recall cylinders in the system and we will trade them off and then we will retire cylinders which do not meet the safety parameters,” he told Citi Business News at the NPA’s downstream colloquium on Wednesday, January 31, 2018.

The cylinder recirculation model has become apparent due to efforts to avert fire disasters at fuel refill stations.

The program also comes on the back of a cabinet decision arrived at in October last year after the fire disaster (gas explosion) at a fuel station at Atomic Junction in the Greater Accra region in October.

Under the model, LPG Bottling Plants will be sited away from congested commercial and population centers and will procure, brand, maintain and fill empty cylinders to be distributed to consumers and households through retail outlets.

Mr. Tampuli maintains the recall which will commence by the end of this year, will be done gradually.

According to him, this is to ensure that the marketing companies are not faced with any challenge of possible shortage of cylinders with the rolling out of the program.

“The cylinder will be procured, owned and branded by the (LPG) marketing companies. So a customer will only have to take an empty cylinder to a retail outlet and get a filled one. If you want any size – if you want 3 kilos, 6 kilos, 9 kilos, 12 kilos; depending on the depth of your pocket, you can get any cylinder that you want that will meet your pocket.”

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post NPA to recall all cylinders under recirculation model appeared first on Citi 97.3 FM - Relevant Radio. Always.

While industry has wholly welcomed the move, some industry analysts have cautioned against the outstanding debts facing institutions involved in the supply of gas.

Citi Business News spoke to a couple of players involved in the sector and their perspectives have been backed with strong arguments which suggest possible ways that the government could use to ensure maximum benefit of its intended program.

President Akufo Addo first mentioned the reduction at the Commissioning of the Twyford ceramics factory at Shama over the weekend.

Per the reduction, businesses would buy a million British Thermal Units of gas at 6 dollars 50 cents, down from the 8 dollars 84 cents.

This also translates into some 26 percent reduction.

For industry, this is pleasant news as it will ultimately reduce the cost of power hence their operational costs.

The CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah said,

“The reduction is good for businesses and it has positive impact on the cost of electricity and therefore reducing the cost of production and we consider that to be important for businesses and I also like the President’s emphasis on industrial consumers.”

But the Executive Director of KITE, Ishmael Egyekumhene and the Vice Chairman of the Public Interest and Accountability Committee (PIAC), Kwame Jantuah share divergent views on the immediate benefits of the move.

Mr. Egyekumhene explained possible reasons for the reduction as, “There is a foundation volume of gas that the Jubilee partners give to the government at no cost but in the build-up, GNPC actually charges Ghana Gas for the gas supplied.”

Mr Jantuah believes otherwise as he argues that, “It sounds like the government is trying as much as possible to satisfy Ghanaians through words but the government needs to be clear and explain to the people that for certain reasons, they will be able to reduce gas rates by a certain percentage.”

VRA indebted to Ghana Gas

According to the semi-annual report of the Public Interest and Accountability Committee, for 2017, VRA owed Ghana Gas to the tune of 107.18 million dollars with interest.

Ghana Gas in turn also owed GNPC to the tune of 132.03 million dollars.

A situation analysts believe requires pragmatic solution to turnaround the fortunes of the companies.

Regarding the use of the energy bond to settle the debts, Mr. Ishmael Egyekumhene and Kwame Jantuah had these to say.

“The debt that VRA is owing to Ghana Gas, those debts must be cleared because the country would have to pay the loans that it secured to build the gas processing plant,” Mr. Egyekumhene stated.

The PIAC Vice Chairman also maintained, “Let’s make sure that we pay these debts once and for all so that everybody knows the state of the companies involved. I am not too happy with the fact that we are playing yo-yo with tariffs. We cannot do that at all!”

Meanwhile, the AGI is optimistic that the affected institutions should put in place mechanisms to absorb them from any potential shock due to the reduction.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Industry divided over reduced cost of gas appeared first on Citi 97.3 FM - Relevant Radio. Always.

Addressing participants at the ongoing Oil Trading and Logistics Downstream Week in Lagos, Nigeria, Chief Executive Officer of NPA, Alhassan Tampuli said export companies were now required to provide records of the import permit of foreign company for verification.

“Now you are required to send us the importer on record and we will confirm from the Regulators in Niger, Mali, and Burkina Faso whether those companies are licensed,” he announced

Mr. Tampuli said companies would have to add a copy of the contract they have with the foreign importer and also attach a list of foreign trucks to be used in order to apply for a ‘no objection’ letter from NPA.

In addition to those rules, he said, export companies would now have to post a performance bond of 150 per cent of the total value of taxes, levies and margins. Bulk Road Vehicles would be allowed to export three times a week where the Ghana Revenue Authority (GRA) will provide escort till the product leaves the shores of the country.

Enumerating on the successes so far, the Chief Executive said since the implementation of the new guidelines, exports to Mali has considerably reduced. “The reverse is that, the GRA is recording increased revenue from domestic consumption of petroleum products”

He noted this was due to the fact that the retail stations were compelled to buy from oil marketing companies “which has adversely shot up the legitimate volumes consumed in the country.”

Touching base on the recently confiscated 15 trucks, he said despite NPA’s inability under its law (ACT 691) to confiscate and auction the product and trucks the NPA were collaborating with GRA (Customs Divisions) to confiscate the product and trucks.

“By virtue of NPA’s Act (Act 691) we are not able to use our law to confiscate and auction them. So we are partnering with Custom’s Division to use their law to confiscate all these 15 trucks and we are about to put them on auction.”

“When we are done, we will revoke the licenses of all these exporters and we will ban all their Directors from actively participating in the downstream petroleum industry. That is the way we think will bring sanity to the industry in Ghana,” he stressed.

Present at the exhibition were Deputy Minister of Energy, Dr. Mohammed Amin Adam; CEO of Chamber of Bulk Oil Distributors, Senyo Hosi, Chairman of the Association of Oil Marketing, Johnny Blagogee and CEO of the Association of Oil Marketing Companies, Mr Kweku Agyemang Duah.

–

By: citifmonline.com/Ghana

The post NPA introduces new export guidelines appeared first on Citi 97.3 FM - Relevant Radio. Always.

The move according to the businesses, is to ensure uninterrupted supply of liquefied petroleum gas.

The decision was arrived at after an emergency meeting between OMCs, Ghana Liquefied Petroleum Gas Operators, and the Liquefied Petroleum Gas Marketing Companies on Thursday, October 19, 2017.

LPG marketers had closed their premises to the public for the past two days, citing maintenance works at the outlets to ensure compliance and safety among the members.

The exercise has been met with stiff opposition from the public.

Some have argued that the marketers were using the move to protest recent cabinet directives to clamp down on non-complying gas and petrol/diesel stations.

The statement signed by the CEO of the Association of Oil Marketing Companies, Kwaku Agyemang- Duah, however expressed the groups’ disapproval of the regulators’ mode of discharging their statutory responsibilities which they say has resulted in unyielding distress.

Read full statement below

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post LPG marketers backdown on closure of outlets appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on the Citi Breakfast Show, Mr. Kumi alleged that, some state officials, including assembly members, have been extorting money from LPG Marketers across the country, since the deadly Atomic Gas explosion, and the subsequent directives from government to sanitize the industry.

[contextly_sidebar id=”ofpQjO4eyrLoLql8JMLORGviISP0k0u8″]This revelation comes a day after the Association suspended the sale of LPG products across the country, with the excuse that they are carrying out maintenance works on their facilities.

However, many have said the shutdown is a deliberate move to frustrate the supply of gas, considering that the LPG Marketers have vehemently kicked against Government’s approach towards ensuring safety in the sector following the Atomic Junction explosion.

Mr. Kumi indicated that, some stations are even facing a threat of closure by the assembly members who are supposedly extorting money from them.

“We have assembly men going round our stations that they want to close it down. There is a whole extortion business going on by this team.”

The Association’s members, some of who shutdown from Wednesday, October 19, have not indicated when it will allow members resume regular operations.

The Association had  indicated that, the closure was to allow for a safety audit.

Mr. Kumi has however clarified that, the move is primarily a response to government’s decision to close down some high risk fuel stations.

“This is as a result of the measures being taken by the authorities to close down our stations…We have identified what the problems are; so let’s deal with the problems, but we have the authorities going round, closing down our stations, extorting monies from our members, and we feel that this is a very unfair treatment. We are just reacting to what the authorities are doing…”

–

By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post State officials are extorting money from us – LPG Marketers appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the leadership, the directive has whipped up public sentiment against their members and increased their risk of doing business.

[contextly_sidebar id=”BseSVuGhImaQgUA2RqE2lfwyX8vils5L”]Following last week’s Atomic Junction Gas explosion, President Akufo Addo, and his Cabinet directed the review of all existing and newly awarded licenses for operators, among others.

But the Public Relations Officer of the Association, Kwame Owiredu, told Citi News their members are contemplating legal action among other options, against the directive.

“As to the constitutionality of the fiat issued by Cabinet, our members are agitating. Aside the suit that they are contemplating, some of them are actually saying that if the NPA is painting them as if their operations are death traps; they are explosions in waiting, they might as well stop operating because you can’t licence somebody and then come back and designate them as high risk or low risk. They are really agitating… By the close of the week , we will issue a press statement and let Ghanaians know what we intend to do.”

Cylinder Re-circulation Module will collapse our businesses – LPG marketers

This threat comes days after the Public Relations Officer of the LPG Marketers Association, Bernard Owiredu, expressed his outfit’s disquiet over plans to introduce the module.

Mr. Owiredu had indicated that, the current module is targeted at collapsing their businesses, despite their many years of existence in the industry.

Cylinder circulation won’t favour the poor – COPEC

The Chamber of Petroleum Consumers (COPEC), also raised concerns about the Cylinder Re-circulation Model of Liquefied Petroleum Gas (LPG) distribution, suggesting it may burden poor Ghanaians.

The Chamber’s Executive Director, Duncan Amoah, noted the inflexibility of the programme and suggested the old system of distribution be employed alongside the new module ordered by President Nana Akufo-Addo.

–

By: Marian Ansah/citifmonline.com/Ghana

The post LPG marketers threaten suit over cylinder re-circulation policy appeared first on Citi 97.3 FM - Relevant Radio. Always.

Workers at a Total and a Goil fuel station nearby have also been evacuated.

[contextly_sidebar id=”atpMU9Q5a3kOxN0uSPO2tBi3knKeCEm2″]Citi News has gathered that personnel of the Ghana National Fire Service (GNFS) are currently at the scene helping to avert an explosion.

According to the General Manager of the restaurant, Richmond Kponor, the leakage was noticed on Monday morning and all operations were stopped. Speaking to Citi News,  Mr. Kponor said work at the restaurant would resume in a few hours.

The Public Relations Officer of GNFS, Prince Billy Anaglate, told Citi News that the Fire Service was informed of the situation at about 10:30 am, and a team was swiftly dispatched to the scene and have since been working to address the problem.

He said one of the restaurant’s cylinders appeared to have been perforated from beneath it, hence the leakage.

He called for calm among residents, noting that the affected the cylinder was currently being cooled for safe flaring.

“We were called at 10:34am and we got there. We saw that there was a leak from a gas cylinder that the restaurant had been using. They have 3 bottles of those gas cylinders, but they were packed on a metal floor. Due to the slow combustion of the metal in which they had packed them, one of the cylinders itself had been perforated and was leaking from beneath it.”

“The firemen are trying to cool the whole temperature of the cylinder to prevent an explosion, and also flaring the gas to empty the bottle,” Mr. Anaglate told Citi News.

There is a general apprehension in the country following a major gas explosion at Atomic junction in Accra last week.

The incident which left about 7 people dead, and more than 130 others injured, started from a gas station located few meters away from a Total fuel station.

More than 8 cars were burnt to ashes.

The Fire Service last weekend averted another gas explosion at Achimota when fire gutted the engine compartment of a gas tanker.

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post Gas leak at La Marwako Restaurant, dozens evacuated appeared first on Citi 97.3 FM - Relevant Radio. Always.

The new regulation is part of the Service’s grand plan to prevent or reduce the incidents of gas explosions especially during the process of offloading the product from tankers to onsite gas storage tanks.

[contextly_sidebar id=”JLae3I6wuXqI7FD8KxnmliNHqG9ogGO0″]The Deputy Public Relations Officer of the Fire Service, Prince Billy Anaglate, in an interview on Eyewitness News on Thursday, said the Service has noted with great concern that most of the explosions occurred at the point of offloading the product.

He decried the low level of safety adherence at some gas stations in the country, noting that having fire officers at the stations during the offloading process will ensure that the maximum fire safety measures are taken into account.

“Many of those gas explosions that we have had in previous years and even the recent one that we had, would have been prevented if the workers and people who mattered including attendants strictly adhered to safety measures… We are going to institute certain measures that will force them to strictly adhere to those things.”

“…because we have also realized in our investigations that many of those fires that occurred at the filling station, were as a result of they offloading the gas. We want to ensure that at the time any gas station wants to offload the gas, then a fire personnel should be there. If a fire personnel is there, then I believe we will ensure that the adherence to strict measures would be the situation, and that will prevent any future fire outbreak,” he said.

Mr. Anaglate further charged fuel station managers to adhere to the required safety practices to avoid endangering their lives and that of persons living around.

He said the fire service is in the process of clamping down on fuel stations that are operating in breach of the necessary safety requirements.

Meanwhile, the Chief Executive Officer of the Ghana Institute for Public Policy Options, Dr. Charles Wereko Brobbey, has said the plan to have fire service personnel supervise offloading of gas is unnecessary and wasteful.

He instead called for strict enforcement of already existing laws in dealing with safety issues in the downstream petroleum sector.

–
By: Jonas Nyabor/citifmonline.com/Ghana

The post Fire Service to supervise gas offloading processes appeared first on Citi 97.3 FM - Relevant Radio. Always.

Citi News gathered that, the gas station, located close to a Total fuel station at Atomic First, exploded before the fuel station later caught  fire.

Citi News’ Richard Dela Sky who is currently around the scene reported that “it is really terrifying.”

“I can hear piercing sound of gas explosion. I can see a lot of fire tenders here trying to put the fire off. The residual gas in the container is burning. I can still hear sounds of explosion. The whole area has been cordoned off by the police. No vehicle is being allowed to the scene.”

.

Franklin Badu Jnr, also reporting from the University of Ghana campus said the students are running for their lives.

“There was a huge explosion that shook the Pentagon hall where I was. It appears that the gas flared into the atmosphere and the inferno followed suit. Students numbering thousands are fleeing for their lives,” he added.

It is currently unclear whether lives have been lost, but personnel of the Fire Service are at the scene trying to douse the fire.

Richard Sky said he could count about seven vehicles completely burnt around the fire scene.

He explained that if someone was at the site at the time of the explosion, the person might not have survived it.

–

By: citifmonline.com/Ghana

The post Gas station explodes at Atomic junction  appeared first on Citi 97.3 FM - Relevant Radio. Always.

The campaign seeks to reduce gas explosions and LPG related fire outbreaks across the country.

The launch was officially announced by the Acting Chief Executive of the National Petroleum Authority, Hassan Tampuli, over the weekend at Cape Coast.

They started with open interactions with some operators of LPG sale outlets and owners of restaurants, ‘chop bars’ and other bulk users in the Cape Coast Municipality.

Briefing the media, Mr Tampuli explained, “We take them through the process of lighting the LPG stove, how to store it, the amount of ventilation that is required to ensure that in the event of any leakage, we can contain the situation much more easily”.

He added that “we engage them and inspect their facilities, and check the integrity of the safety procedures they have, and where we think there are deficiencies, we educate them on what to do”.

Liquefied petroleum gas, just as other petroleum products, has accounted for many of the fire outbreaks recorded in the country because users are either unskilled in its use, or do not adhere to proper instructions on its use.

To minimize such accidents, the NPA has embarked on a national campaign on the dispensing and use of the product to increase people’s conformity to minimum safety measures.

The Authority has so far been in regions such the Greater Accra, Ashanti and Western Regions, earmarking seven municipal, metropolitan and districts in each region .

The Cape Coast Metropolis, Assin North, Mfantseman, Komenda-Edina-Eguafo-Abrem and the Abura-Asebu –Kwamankese are the areas that have so far benefited from the campaign in the Central Region.

Mr Tampuli further hinted, “what we again want to do is to be able to identify some conforming retail outlets, restaurants and ‘chop bars’ and at the end of the year we recognize them at an event we will organize for the downstream petroleum industry, so those who conform are recognized”.

“And those who are not able to measure up to the minimum content of our safety protocols, we serve general notice to the general public to be careful when they go to those places”.

–

By: Joseph Ackon-Mensah/citifmonline.com/Ghana

The post Gas safety campaign kicks off in Central Region appeared first on Citi 97.3 FM - Relevant Radio. Always.