Streamlining LPG Distribution: NPA Introduces Customer Relationship Management System in September
The National Petroleum Authority (NPA) is set to initiate the full operation of their Cylinder Recirculation Model (CRM) this September, states Perry Curtis Kwabla Okudzeto, their contact person designation. The CRM's primary goal is to ensure that by 2030, 50% of Ghanaian residents have access to secure, clean, and eco-friendly LPG, encouraging its widespread adoption in residential, commercial, and industrial sectors.
At a recent media briefing in Accra, Okudzeto highlighted that lessons learned during the CRM pilot phase significantly influenced the framework for the upcoming September implementation. The framework, he explained, was developed by collaborating with crucial LPG sector stakeholders like LPG marketing companies, the Ghana LPG Operators Association, Gas Tanker Drivers Association, Association of Oil Marketing Companies, Tanker Drivers Union, and the Chamber of Bulk Oil Distributors. This all-inclusive collaboration shaped the market structure, licensing regime, guidelines, standard operating procedures, and more.
In an effort to prioritize efficiency and safety in LPG distribution, the committee has incorporated a new licensing category within the framework, now encompassing bottling plants and cylinder transportation companies. Since 2017, the focus has been on constructing bottling plants that will serve as the central hub for the new policy, as under it, cylinders will be filled with LPG and dispatched to exchange points for distribution. As of now, four of these bottling plants are ready for operation.
Obed Kraine Boachie of the Authority's Gas Directorate expressed readiness for the CRM's full implementation in September, stating "This policy has come a long way, and we believe this is the perfect time for a full roll-out." The goal is to achieve 50% LPG access by 2030, which, considering the current 35% access from the recent population census, appears to still be achievable. In 2017, when the policy was submitted to the Cabinet, the LPG access rate was only 23%.
In 2017, the Ministry of Energy instructed the National Petroleum Authority (NPA) to create an implementation committee responsible for planning, overseeing, and ensuring the successful execution of the National LPG Promotion Policy. The committee has since conducted extensive overseas visits to various countries with existing CRM models to gain insights into supply chain dynamics, regulatory framework, and challenges associated with their implementation.
To guarantee a smooth implementation process, LPG refilling plants will undergo a risk assessment by the NPA to classify them as either low-risk or high-risk based on their compliance with safety standards. High-risk refilling stations will immediately be converted into filled cylinder retail and distribution outlets, while low-risk refilling stations will be exclusively designated for the supply of autogas, with stringent safety measures in place. This classification and conversion approach aim to maximize safety and efficiency within the LPG sector under the CRM.
- Perry Curtis Kwabla Okudzeto mentioned at a media briefing in Accra that collaboration with industry stakeholders, including LPG marketing companies, the Ghana LPG Operators Association, and others, significantly influenced the framework for the CRM's full operation this September.
- The National Petroleum Authority (NPA) is constructing bottling plants to serve as central hubs for LPG distribution under the CRM policy, with four of these plants ready for operation as of now.
- Obed Kraine Boachie of the Authority's Gas Directorate stated that the CRM's full implementation in September is the perfect time, considering the current 35% LPG access rate, which is a significant improvement from the 23% access rate in 2017.
- The Ministry of Energy instructed the NPA in 2017 to create an implementation committee to oversee the successful execution of the National LPG Promotion Policy, which includes conducting overseas visits to countries with existing CRM models to gain insights into supply chain dynamics and implementation challenges.
- To ensure safety and efficiency within the LPG sector under the CRM, LPG refilling plants will undergo a risk assessment by the NPA, which will classify them as either low-risk or high-risk based on their compliance with safety standards, with high-risk stations being converted into filled cylinder retail and distribution outlets.
