Cylinder Recirculation Model to create 4,500 jobs, first bottling plant to begin operations this year

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The implementation of the Cylinder Recirculation Model (CRM) is expected to create not less than 4,500 jobs, the National Petroleum Authority has indicated.

With the first bottling plant expected to be operational this year, the CRM will provide opportunities for new players to join the value chain in the distribution of LPG in the country, from bottling, distribution, re-distribution, bulk haulage, cylinder manufacturing and maintenance to safety audits.

Speaking at a stakeholders’ engagement on CRM in Accra last Friday, Dr Mohammed Amin Adam, Deputy Minister of Energy, said the model would be solely owned and maintained by Ghanaians under the local content law.

“This new policy will be for Ghanaians and no other person,” he noted, while asking the public to be ready to adapt to the new policy.

He said the implementation of the policy would ensure that 50 per cent of Ghanaians have access to safe and environmental-friendly LPG for domestic, commercial and industrial use from the by 2030.

Dr Amin commended the NPA for the steps it has taken towards the implementation of the CRM.

Consultations on CRM

Mr Alhassan Tampuli, Chief Executive Officer of NPA, asked for more consultations with civil society and the general public for the smooth execution of the policy. To him, “broader consultations will help shape out a more conducive and appropriate policy for all”.

He said the NPA has had various consultations with various groups and in various regions. These include the National House of Chiefs, Council of State, residents of Nima Mamobi, and Asantehene, Otumfuo Osei Tutu.

He added that the consultations were to pick perspectives from the various stakeholders and to get inputs in order to roll out a policy that would be good for the industry and the consumer.

Second Lady committed to CRM

Second Lady Samira Bawumia, who graced the occasion as the guest speaker, committed to the policy and will be an advocate for its implementation.

She was hopeful that consultations would shore up public interest in the cylinder recirculation module.

According to her, using LPG product should not result in the loss of lives. “No woman, no child, no family should lose a loved one because of usage of LPG in cooking. LPG is a friend, not an enemy, when used safely.”

CRM policy

The National Petroleum Authority (NPA) is seeking to move away from the old model of gas filling to a new model which would see the building of bottling plants that will fill cylinders for distribution at approved cylinder exchange points.

Under the new model consumers would be expected to exchange empty cylinders for filled ones at retail centres.

The policy when implemented will help to curb the numerous gas explosions that frequently hit the country, and also solve the stress consumers go through in filling their cylinders.

In order to ensure smooth implementation, the high-risk refilling stations that were identified by the NPA after its risk assessment would be immediately converted into filled cylinder retail and distribution outlets whereas low-risk refilling stations would be dedicated to the supply of autogas only, with improved safety standards.

Objectives of the policy

The objective of CRM is to develop a market-driven structure that would ensure safety, increased access and adoption of LPG. It is also to ensure the existence of robust and standard health, safety and environmental practices in the production, marketing and consumption of LPG.

Additionally, it is also to ensure local content and participation in the LPG sub sector in compliance to the Downstream Local Content Policy, while ensuring the sustainability of supply under the new market structure.

The CEO told journalists that the broad objective of the policy was to LPG penetration in the country, which was to ensure that at least 50% of Ghanaians have access to safe, clean and environmentally-friendly LPG for increased domestic, commercial and industrial usage by 2030.

The event brought together LPG Marketing Companies, queen-mothers from the Greater Accra Region, Ghana Traditional Cateress Association, Tanker Drivers Union, Association of Oil Marketers Union, among others.

Source: The Finder



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Kennedy Mornah is an Award Winning Ghanaian Journalist with over two decades of experience in the Ghanaian Media landscape spanning the electronic, print and digital media. He is a Media Consultant, a Corporate MC, Radio and TV Host, Founder and Publisher of the Maritime and Transport Digest Newspaper, Businessman, a Go getter and an optimist. He has worked for renowned media organizations including Diamond Fm in Tamale, Luv Fm in Kumasi, Oman Fm in Accra and Starr Fm in Accra In 2017 he received the Reporter of the Year Award at the Ghana Shippers Awards in Accra, Ghana.

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