The Minister of Energy and Green Transition, Dr John Jinapor, has told Parliament that the government intends to “eventually” ban the importation of gas cylinders into the country.
He said once the ban was in place, the ministry would insist that all cylinders and canisters be procured locally.
To achieve that, he said the ministry was working with the National Petroleum Authority (NPA) and the Ghana Gas Company to revamp the Ghana Cylinder Manufacturing Company (GCMC) Ltd.
“I can confirm that so far, estimates show that the company needs about $8 million to be able to revamp it, but we have been able to mobilise about $6 million for them,” he said.
Contributing on the floor of Parliament to a statement by the National Democratic Congress (NDC) Member of Parliament (MP) for Tano South, Charles Asiedu, on the urgent need to revitalise the GCMC last Thursday, Dr Jinapor said that with the ongoing retooling of the company, it had been able to double its production this year over what happened in 2024.
“I think we are on course to revamp Ghana Cylinder, and we are on course to retool it.
“Not only are we doing that, we are giving them off-taker agreements and setting an escrow account,” he said.
Recalling old cylinders
As part of the Cylinder Recirculation Model, Dr Jinapor said he had issued a directive for all old and obsolete cylinders to be recalled for GCMC to retrofit them.
He said the ministry had also signed an agreement with GOIL to act as an off-taker for the cylinders under the Cylinder Recirculation Model.
“So, Mr Speaker, let me assure this House that we are on course towards retooling Ghana Cylinder and making it a modern factory fit for purpose,” Dr Jinapor said.
Inject capital
Proposing additional pathways for the quick recovery of the Ghana Cylinder, the MP for Tano North said the state must inject targeted capital into the operations of the GCMC to upgrade its production line, introduce modern fabrication technologies, and improve quality control processes.
Mr Asiedu said the government must also engage private investors and LPG marketing companies in joint ventures to expand market access.
“The government and public institutions should be encouraged to sell their LPG products and accessories from the company as a matter of policy,” he said.
Mr Asiedu, also a member of the Energy Committee, said the company should be supported under the African Continental Free Trade Area to enter neighbouring markets by leveraging the regional demand for clean cooking solutions.
Again, the public needed to be constantly sensitised to the health, economic and environmental benefits of LPG usage, he said.
“Mr Speaker, let us remember that a stronger demand will sustain the operations of the company.
“Let us strengthen performance-based accountability mechanisms within all state-owned enterprises, including the GCMC, to ensure transparency and accountability,” he added.
Increase LPG adoption
The Tano North MP said the adoption of LPG reduced reliance on firewood charcoal in order to preserve Ghana’s forest reserves, improved indoor air quality and reduced greenhouse gas emissions.
He cited the 2023 Industry report of the Ghana Chamber of Bulk Oil Distributors, which said LPG formed the primary cooking fuel for about 40 per cent of Ghanaians.
Mr Asiedu said Ghana had also set an ambitious target to achieve 50 per cent of LPG penetration by 2030.
In rural areas, the Tano North MP said LPG usage only formed 70 per cent of total floor usage by 2023.
Despite the strategic relevance of the GCMC to boost LPG usage, he said it had struggled to fulfil its potential.
The Auditor General’s report revealed that the company posted a loss of GH¢4 million in 2021, and in 2023, it was acquired by the Ghana Gas Company Limited to enable it to continue operating.
“Mr Speaker, even though this acquisition signals a step in the right direction, there is an urgent need for a broader and more coordinated national recovery plan,” Mr Asiedu said.
“In this regard, the Ministry of Energy and Green Transition had announced earlier last year the establishment of a Joint Budget Implementation Committee to oversee a revitalisation plan,” he pointed out.
Mr Asiedu said a revitalised GCMC would empower local industry, create jobs, expand LPG access and support Ghana’s climate goals.
He, therefore, called on the House to support the revitalisation efforts with the urgency and seriousness they deserve.
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Source: www.myjoyonline.com