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Business News of Monday, 2 September 2024

Source: www.ghanaweb.com

CBOD kicks against decision by LPGMCs to cut ties with two registered Ghanaian depots in Tema

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The Chamber of Bulk Oil Distributors logo The Chamber of Bulk Oil Distributors logo

The Chamber of Bulk Oil Distributors (CBOD) has expressed deep concern about the decision by Liquefied Petroleum Gas Marketing Companies (LPGMCs) to cease business relations with SAGE Petroleum (Quantum Terminals) and Blue Ocean depots located in Tema.

The Chamber argues that these Ghanaian companies make key contributions to the downstream petroleum sector, and a decision by the LPGMCs to cut ties with Quantum Terminals and Blue Ocean, is not only counterproductive but will significantly impact the sector.

CBOD, in a statement issued via its handle on X (formerly Twitter), pointed out that the two Ghanaian companies have operated legally and complied with the laws of the National Petroleum Authority (NPA) Act 691, 2005, which is a requirement for licensing regulation in the sector.

“There’s nothing illegal about their operations.

“Quantum and Blue Ocean have over the years contributed to the infrastructural development of the downstream by investing in Quantum Terminals and Tema Multi-Purpose Terminals (TMPT), contributing to about 9% and 14% of private sector petroleum product storage capacity, respectively," CBOD stated.

It continued, “Quantum Terminals and Blue Ocean have made substantial investments in the LPG industry, particularly in the Cylinder Recirculation Model (CRM). This model is aligned with the government’s target of increasing LPG usage to 50% by 2030. Their commitment to this initiative is evident in their over $30 million investment in bottling plants, storage facilities, and cylinders, as well as a $70 million investment within the next 18 months.”

CBOD, however, mentioned that although every entity in the value chain must be held accountable for its actions, it would not allow for the reputation of its members to be “undermined by baseless allegations that seek to use xenophobic ideas to tarnish these respectable companies’ reputation.”

See the full statement below:







MA/AE