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in Extractives/Energy

NPA Hints of Regulating Bitumen Supply Chain in the Country

Maynard Championby Maynard Champion
April 13, 2023
Reading Time: 3 mins read
NPA Hints of Regulating Bitumen Supply Chain in the Country

The National Petroleum Authority (NPA) has disclosed its plans of developing a framework to regulate the importation, storage, processing, and marketing of bitumen in the country.

According to the NPA, the framework, which will have inputs from the Ghana Standards Authority (GSA), the Ghana Highways Authority (GHA), and the Customs Division of the Ghana Revenue Authority (GRA), is to streamline the bitumen supply chain and ensure compliance with quality standards specifications.

The NPA Chief Executive, Dr. Mustapha Abdul-Hamid, and Management members of the Authority made this known during an inspection tour of a bitumen storage and production plant at Tema jointly owned by Goil Energy and Societe’ Multinationale de Bitimumes (SMB) of Cote d’Ivoire.

The facility with 7,500 metric tonnes installed capacity takes delivery of bitumen from Cote d’Ivoire. One component of the facility produces polymer-modified bitumen and bitumen emulsions, which are combinations of bitumen and some chemicals.

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Per the law establishing the NPA, it has the mandate to regulate all petroleum products, including bitumen, which is mainly used for road construction.

Ghana’s Petroleum Downstream Industry Records Robust Growth of 41%- NPA CEO
Dr. Mustapha Abdul-Hamid, the Chief Executive Officer of the National Petroleum Authority

Dr. Abdul-Hamid affirmed the commitment of the NPA to streamline the bitumen supply chain to ensure compliance with industry standards.

Giving details of the NPA’s actions, the Head of Planning of NPA, Mr. Dominic Aboagye indicated that the NPA constituted a committee a couple of years ago to look at the entire bitumen supply chain to see how to streamline the sector.

Engagement Of Players In The Bitumen Value Chain

Mr. Dominic Aboagye noted that the Authority engaged players in the bitumen value chain to understand their operations, and it turned out that much of the supply was from Cote d’Ivoire. With that information, he said a team from the NPA led by Dr. Abdul-Hamid visited Cote d’Ivoire in 2021 to study the operations of Societe’ Multinationale de Bitimumes (SMB), the main exporter of bitumen to Ghana.

Mr. Aboagye stated that the NPA committee has since been developing the framework, and indicated that the Authority would engage the GHA, the GSA, the Customs Division of GRA, and players in the bitumen supply chain to finalize the framework to regulate the sector.

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Mr. Aboagye noted that all players in the bitumen supply chain would be licensed by the NPA to streamline their operations.

In his presentations, the Group CEO of Goil Company Limited, Mr. Kwame Osei Prempeh, said the plant has been selling the bitumen, polymer-modified bitumen, and bitumen emulsions on demand for road construction.

The Group CEO of Goil Company Limited welcomed the move by the NPA to regulate the bitumen supply value chain as it would ensure the supply of quality products in the country.

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The NPA team that participated in the tour included the Director of Economic Regulation and Planning, Mrs. Alpha Welbeck, and the Director of Policy Coordination, Dr. Sheila Addo, the Head of Quality, Control, Mr. Ubeidalah Kutia Saeed, and the Executive Assistant, Mr. Faisal Ibrahim Cisse.

Operations started in September 2022, and arrangements are underway for the official commissioning of the plant, possibly by President Nana Addo Dankwa Akufo-Addo and his Ivorian counterpart Mr. Alassane Ouattara this year.

READ ALSO: Ghana’s Decision To Prioritize China Is Not The Best- Development Economist

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Tags: BitumenGhana Revenue AuthorityGhana Standards AuthorityGoilNational Petroleum Authority
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