CBOD calls for calm in LPG marketers’ row with SAGE Petroleum, Blue Ocean

The Chamber of Bulk Oil Distributors (CBOD) has called for a level playing field in Ghana’s LPG market, emphasizing the importance of efficiency and safety.
The chamber warned that misinformation could undermine efforts to ensure the safe and efficient use of domestic gas in the country.

CBOD CEO expresses concern over market disruptions
Dr. Patrick Ofori, Chief Executive Officer (CEO) of the Chamber, expressed deep concern at a press briefing about the recent decision by Liquefied Petroleum Gas Marketing Companies (LPGMCs) to sever business ties with two key players in the downstream petroleum sector, SAGE Petroleum (Quantum Terminals) and Blue Ocean Investments Limited.
He urged the National Petroleum Authority (NPA) to act swiftly in addressing the ongoing disputes that are causing unhealthy competition and disruptions in the sector.
“We want the regulator to act swiftly. We don’t want anybody to take a whole sector to ransom by disrupting supply. That one, we would not want to entertain it. We also want the regulator to ensure that it is able to bring every one of us to the table to bring an amicable solution to this as soon as possible,” Dr. Ofori stated.

Call for urgent dialogue
Dr. Ofori called for urgent dialogue among all stakeholders to resolve the ongoing dispute, emphasizing the need for collaboration rather than division within the industry.

Quantum terminals and Blue Ocean’s contributions
Dr. Ofori highlighted that Quantum Terminals and Blue Ocean Investments Limited, both prominent Ghanaian companies, have been instrumental in developing the country’s downstream petroleum sector.
They are legally registered under Ghanaian law and fully compliant with the National Petroleum Authority (NPA) Act 691, Act 2005.
He stressed that the two companies have consistently met regulatory requirements and refuted public suggestions of any illegal operations.
The Chamber emphasized the significant contributions of Quantum Terminals and Blue Ocean to the infrastructure of the downstream petroleum industry.
Quantum Terminals and the Tema Multi-Purpose Terminals (TMPT), established by Blue Ocean, collectively contribute approximately 23% of the private sector’s petroleum products storage capacity in Ghana.
Their investments in the Liquefied Petroleum Gas (LPG) industry, particularly in the Cylinder Recirculation Model (CRM), align with the government’s goal of increasing LPG usage to 50% by 2030.

Substantial investments in lpg industry
“Quantum Terminals and Blue Ocean have demonstrated their commitment to the government’s LPG promotion initiative through substantial investments,” the CBOD noted. “Their over $30 million investment in bottling plants, storage facilities, and cylinders, along with a planned $70 million investment over the next 18 months, underscores their dedication to supporting the government’s energy goals,” Dr. Ofori explained.

Refuting monopolistic allegations
Addressing the recent controversy surrounding the operations of these companies, particularly allegations of monopolistic practices, Dr. Ofori refuted claims that Quantum Terminals and Blue Ocean are monopolizing the LPG market.
He pointed to the participation of other companies like Goil and Ghana Gas in the sector.
“Goil has obtained a license and constructed two bottling plants in Tema and Kumasi. Similarly, Ghana Gas is in the process of establishing its own bottling plant. Is it illegal for these institutions to participate in the LPG market? The answer is no,” he stressed, adding, “where then is the monopolistic market created by New Gas and Blue Ocean? We must advocate for a level playing field where all companies can compete fairly.”

Efficiency and safety in the LPG market
The Chamber emphasized the importance of efficiency and safety in the LPG market, warning against the use of substandard materials that could compromise both.
“Efficiency should drive the market, leading to cheaper and safer LPG delivery for consumers. This requires the use of high-quality materials like proper LPG hoses, cylinders, and regulators. We must oppose attempts to introduce substandard materials, as they compromise safety and environmental standards.”

Adherence to Ghanaian content policy
The Chamber praised Quantum Terminals and Blue Ocean for adhering to the Ghanaian Content and Ghanaian Participation Policy, which mandates the employment of local personnel and partnerships with local businesses.
This policy, set up by the Ministry of Energy, aims to protect local indigenous personnel within the downstream sector, and the Chamber commended the Ministry for its efforts in this regard.

Criticism of LPGMCs’ decision
The Chamber criticized the decision by the LPGMCs to cut ties with Quantum Terminals and Blue Ocean, describing it as counterproductive to the overall goal of promoting LPG usage in Ghana.
The CBOD warned that spreading misinformation could harm the sector’s efforts to ensure safe and efficient domestic gas usage.
“The decision by LPGMCs to cut ties with these companies is counterproductive to the LPG promotion efforts by the government, NPA, and all stakeholders. While we strive to preserve our environment, we must never compromise our safety and the efficiency of domestic gas usage by spreading misinformation,” the Chamber stated.

Call for constructive dialogue
To resolve the ongoing dispute, the CBOD CEO called for constructive dialogue among all parties involved.
He expressed the Chamber’s solidarity with Quantum Terminals and Blue Ocean and urged the LPGMCs to work collaboratively with the regulator and other stakeholders to find a mutually beneficial solution.
“We encourage our brothers from the LPG Marketing Companies (LPGMCs) to collaborate with the regulator and all relevant stakeholders, as none of us in this space pose a threat to each other. The market will go against those who fail to comply, innovate, and evolve. We believe that working together is the key to ensuring nationwide access to safe LPG by 2030,” Dr. Ofori concluded.