In a recent move, the Liquefied Petroleum Gas Marketing Companies (LPGMCs) have decided to stop doing business with Quantum Terminals and Blue Ocean, two LPG depots located in Tema. This decision was communicated in a letter sent by the LPGMC Chairman, Mallam Bukari Amadu, to the Gas Tanker Drivers Association.
However, The Chamber of Bulk Oil Distributors (CBOD) has voiced concerns regarding the decision made by the Liquefied Petroleum Gas Marketing Companies (LPGMCs) to end their partnerships with Quantum Terminals and Blue Ocean Investments Limited, two well-respected entities in Ghana’s downstream petroleum industry.
The CBOD stated that the LPGMCs’ choice to cut ties with these companies undermines the collective efforts of the government, the National Petroleum Authority (NPA), and other stakeholders in promoting the use of LPG in the country.
According to LPGMC, they believe that their action is necessary to protect against what they call “foreign aggression.” They argue that this decision is part of a broader initiative aimed at safeguarding indigenous businesses, preserving over 10,000 Ghanaian jobs, and defending local investments exceeding $400 million made by Ghanaians over the past 30 years.
Issuing a statement on August 22, 2024, the CBOD pointed out that both Quantum Terminals and Blue Ocean are fully compliant with the NPA Act 691 and have played a significant role in strengthening the infrastructure of Ghana’s LPG sector.
The CBOD stressed that Quantum and Blue Ocean have made substantial investments in infrastructure, including Quantum Terminals and Tema Multi-Purpose Terminals (TMPT), which account for approximately 9% and 14% of the private sector’s petroleum storage capacity, respectively.
Additionally, the CBOD emphasized the substantial financial commitments made by Quantum and Blue Ocean in the LPG industry, particularly in support of the Cylinder Recirculation Model (CRM), which aligns with the government’s target of increasing LPG usage to 50% by 2030.
The CBOD cautioned against the spread of misinformation that could unfairly tarnish the reputations of Quantum and Blue Ocean and advocated for the protection of local businesses.
They noted that both Quantum Terminals and Blue Ocean follow the Ghanaian Content and Participation Policy, which encourages the use of local workers and resources in the downstream petroleum sector.
The CBOD therefore calls for constructive dialogue with the LPGMCs to address the current issues and promote collaboration within the sector, recognizing the importance of a competitive business environment for fostering innovation and growth.
Expressing solidarity with Quantum Terminals and Blue Ocean, the CBOD urged LPGMCs to work together with regulators and relevant stakeholders, emphasizing that a united approach is crucial to ensuring widespread access to safe LPG by 2030.
