Inadequate LPG storage tanks pose challenges, says NPA’s Abass Tasunti

The National Petroleum Authority (NPA) has shed light on the challenges facing the supply and storage of Liquefied Petroleum Gas (LPG) in Ghana.

In an interview on Joy News’ PM Express Business Edition on Thursday, October 4, Abass Ibrahim Tasunti, Director of Regulation and Planning at the NPA, emphasised the shortage of adequate storage tanks for LPG as a key reason behind occasional supply delays.

He explained that the NPA’s role involves continuous monitoring of stock levels, ensuring that the country always has reserves.

However, he admitted that while there are reserves, they aren’t always sufficient to meet demand.

“The issue was about access to the product. As I said, the reserve was in the tank. It was just signing off to say that we have agreed on the quantities that were discharged that caused a delay in selling the product today, for example,” he stated.

A key distinction between LPG and other petroleum products, such as petrol and diesel, lies in storage capacity.

Unlike petrol and diesel, which can be stocked for up to seven weeks, LPG storage is limited to much shorter periods.

Abass Tasunti revealed, “We don’t have adequate storage tanks for LPG, so LPG, you can go as far as maybe two weeks, three weeks to last.”

He attributed the inadequate storage infrastructure to limited investment in LPG storage tanks.

To address this, the NPA has initiated measures such as the Tender Program, which ensures the continuous availability of LPG.

Abass Tasunti explained that the program guarantees a steady supply by coordinating the timely importation of the product.

“Last week, we did a tender for the supply for November and December. So already the process has come on for companies to deliver for November and December consumption,” he noted, assuring Ghanaians that the current stock would last for the rest of October.

Private sector participation has been vital in expanding LPG storage capacity over the years. Tasunti acknowledged that several private companies have invested in new storage terminals, particularly in Tema.

“In Tema, for example, two new ones came on board recently. So with time, companies are building, and we have had a request from other companies to build LPG terminals,” he shared.

He also noted that, at one point, Ghana relied solely on Tema Oil Refinery (TOR), but now, there are five LPG terminals in the Tema area.

“We can do with more,” he added, emphasizing the need for continued investment in this area.

Tasunti also addressed recent disruptions in LPG supply, citing a delay caused by the discharge process.

“We had product that was LPG which was going to last us about a month. The peculiar thing with LPG, unlike petrol and diesel, is that for petrol and diesel, you could have sometimes more than seven weeks to last of products,” he explained.

The delay, he clarified, was due to the process of verifying and agreeing on the quantities being discharged.

Beyond the challenges of importation and storage, local production of LPG at Atuabo has also been crucial in maintaining supply.

Abass Tasunti acknowledged recent challenges at Atuabo but reassured the public that they are now resolved.

“We have Atuabo, which is producing… they had some challenge, but they have come on board now,” he stated.

Abass Tasunti stressed the NPA’s ongoing commitment to monitoring LPG stocks and maintaining a reliable supply through investment and strategic planning.

“Our work is to always monitor the stocks and ensure that we have a plan that ensures that we have continuous LPG coming into the system,” he affirmed.

As Ghana continues to expand its LPG infrastructure, Abass Tasunti believes that further investment in storage will be critical to overcoming current supply challenges and ensuring energy security for the country.