LPG Distribution: NPA to kickstart Cylinder Recirculation Model in September
The National Petroleum Authority (NPA) is preparing to launch the much-anticipated Cylinder Recirculation Model (CRM) Programme in September 2023, a move set to transform the nation’s Liquefied Petroleum Gas (LPG) distribution landscape.
According to Perry Okudzeto, Deputy Chief Executive Officer of the NPA, the CRM initiative seeks to revolutionize domestic and commercial LPG usage in Accra and selected regions.
Under the innovative CRM, residents in targeted areas will no longer be required to personally own LPG cylinders. Instead, exchange points will house filled LPG cylinders, enabling customers to access the fuel by registering with their National Identity Card and paying for the desired quantity.
The NPA, alongside strategic partners, will spearhead the implementation of this groundbreaking programme under the watchful eye of the Ministry of Energy. While the CRM is slated to debut in Accra and Kumasi in September, the scheme is expected to gradually expand its reach across the country. Notably, the CRM will operate alongside the existing distribution model, eventually phasing it out.
The NPA’s 50-member committee, comprising industry stakeholders, has played a vital role in shaping the CRM. LPG Marketing Companies’ representations on the committee have been carefully considered, ensuring an inclusive and collaborative approach to the framework’s design.
The CRM’s overarching goals are to promote access to safe, environmentally friendly LPG for at least 50% of Ghanaians by 2030, enhance safety in LPG distribution, and increase LPG adoption. The paradigm shift aims to curtail the needless loss of lives and property linked to gas filling stations, primarily caused by human error.
As per the CRM policy, cylinders will be procured from manufacturers and filled at designated Bottling Plants. Bulk transportation of filled cylinders to exchange depots will be followed by distribution to cylinder exchange points, where consumers can conveniently register and pay for their preferred quantity of LPG.
Registration with the Ghana card at exchange points will be integral for traceability and consumer data. The CRM pilot programme, executed in the Eastern, Ashanti, and Northern regions, has been instrumental in shaping the policy’s implementation framework.
CRM Bottling facilities, including GOIL in Tema and Kumasi, Blue Ocean, and Newgas, are primed for operations. Furthermore, APPEB Cylinder Manufacturing Company in Awutu Senya, SIGMA Cylinder Manufacturing Company in Accra, and Ghana Cylinder Manufacturing Company at Spintex will produce the cylinders for nationwide distribution.
Having constructed the essential bottling plants since 2017, the NPA has laid the foundation for the CRM’s operational success. This transformative initiative is poised to revolutionize LPG distribution, bolster accessibility, and enhance safety, propelling Ghana into a new era of sustainable energy practices.
