The Ghana Chamber of Bulk Oil Distributors (CBOD) has expressed deep concern over the recent decision by Liquefied Petroleum Gas Marketing Companies (LPGMCs) to sever business relations with SAGE Petroleum (Quantum Terminals) and Blue Ocean depots in Tema.
These two companies, integral members of the CBOD, play a significant role in Ghana’s downstream petroleum sector. In a press statement released by CBOD, the organization emphasized that Quantum Terminals and Blue Ocean Investments Limited are fully compliant with Ghana’s legal and regulatory framework, including the National Petroleum Authority (NPA) Act 691, Act 2005.
The CBOD underscored the legitimacy of these companies’ operations and their substantial contributions to the infrastructural development of the downstream petroleum industry.
“Quantum Terminals and Blue Ocean have been pivotal in advancing Ghana’s energy infrastructure, particularly through investments in the Liquefied Petroleum Gas (LPG) industry.
“The companies have collectively invested in initiatives aligned with the government’s ambitious goal of increasing LPG usage to 50% by 2030.”
Ghana Chamber of Bulk Oil Distributors (CBOD)
The CBOD indicated that these company have invested over $30 million in bottling plants, storage facilities, and cylinders, with plans to inject an additional $70 million over the next 18 months.
The press statement highlighted the companies’ commitment to the Cylinder Recirculation Model (CRM), an initiative launched by the government in 2014. This model is designed to enhance the safety and accessibility of LPG for consumers across the country. Quantum Terminals and Blue Ocean’s investments in bottling plants are a direct response to this government initiative, demonstrating their dedication to supporting national energy goals.
CBOD’s statement strongly defended the need for a competitive and fair market environment within the LPG sector. The organization stressed that the boycott by LPGMCs not only undermines the efforts of Quantum Terminals and Blue Ocean but also threatens the overall progress of the LPG promotion efforts championed by the government, NPA, and other stakeholders.
The CBOD cautioned against the spread of misinformation and xenophobic narratives that could tarnish the reputations of these reputable companies. They called for all entities within the value chain to be held accountable, ensuring that any regulatory violations are addressed decisively.
However, CBOD warned against the use of baseless allegations to undermine the industry’s hard work and reputation.
Ensuring Industry Compliance and Safety
The CBOD reiterated the importance of maintaining high standards in the LPG industry, particularly concerning the materials and equipment used in LPG distribution. The statement called for the use of quality LPG hoses, cylinders, and regulators to ensure the safety of consumers and environmental protection.
The CBOD firmly opposed any attempts to introduce substandard materials into the market, which could compromise safety and efficiency.
In defending Quantum Terminals and Blue Ocean, the CBOD questioned the rationale behind the LPGMCs’ decision, especially in light of the fact that other companies, such as Goil and Ghana Gas, have also obtained licenses and established bottling plants.
“Similarly, Ghana Gas, which has also acquired a license, intends to establish its own bottling plant. Is it illegal for both institutions to participate in the LPG market? The answer is no.
“Where lies the monopolistic Market created for New Gas and Blue Ocean? It is essential to advocate for a level playing field where all companies can compete fairly.”
Ghana Chamber of Bulk Oil Distributors (CBOD)
The CBOD also praised Quantum Terminals and Blue Ocean for their adherence to the Ghanaian Content and Ghanaian Participation Policy, a framework set by the Ministry of Energy to protect local personnel within the downstream sector.
The decision by the LPGMCs to boycott these companies is seen by the CBOD as counterproductive to the collective efforts of the government, NPA, and other stakeholders in promoting LPG usage across the country. The CBOD urged all stakeholders to engage in constructive dialogue to resolve the issue and foster collaboration within the industry.
The CBOD reaffirmed its support for Quantum Terminals and Blue Ocean, calling for a swift resolution that benefits all parties involved. The organization emphasized that the LPG market does not present a threat to any player, provided they comply with regulations and continue to innovate and evolve.
The CBOD expressed optimism that by working together, the industry could achieve the goal of nationwide access to safe LPG by 2030.
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