Arch Holdings, the parent company of Quantum, Sage, and Newgas, has denied claims that its subsidiaries are foreign-owned businesses.
In a statement issued by Samuel Bonuedie, Head of Brands and Communications, the company clarified that Newgas, which operates a bottling plant under the Cylinder Recirculation Model (CRM), is a fully owned Ghanaian entity.
The statement was released to debunk recent media publications suggesting that Arch Holdings is foreign-owned and opposed to the involvement of Liquefied Petroleum Gas Marketing Companies (LPGMCs) in the CRM.
Mr. Bonuedie emphasized that Arch Holdings has been an active participant in Ghana’s petroleum sector since 2009 and directly employs over 2,000 Ghanaians.
The company is vertically integrated across different segments of the petroleum downstream value chain, in full compliance with the existing regulatory framework.
Arch Holdings highlighted its alignment with the government’s commitment to the Sustainable Development Goals (SDGs), particularly the goal of promoting clean cooking for all by 2030.
This initiative aims to transition households from wood fuels to LPG, thereby reducing health risks, preventing deforestation, and combating desertification.
In October 2017, the government directed the National Petroleum Authority (NPA) to implement the Cylinder Recirculation Model as a safer and more accessible method for distributing LPG, particularly for household use.
The NPA developed a transparent licensing framework, inviting companies to apply for permits to build and operate bottling plants under this model.
Mr. Bonuedie explained that Arch Holdings made a strategic decision to apply for a license to build and operate a bottling plant when many other companies hesitated due to the financial risks involved.
Newgas, a subsidiary of Arch Holdings, secured the necessary permits and completed the construction of the bottling plant in late 2023.
The plant has since begun operations under the CRM, adhering strictly to its license, which does not permit distribution and retailing of LPG—a role reserved for OMCs and LPGMCs.
Arch Holdings has signed agreements with several OMCs and is in discussions with other OMCs and LPGMCs to establish more Cylinder Exchange Points across the country.
The CRM’s primary goal is to increase LPG penetration and accessibility, supporting the government’s objective to develop over 5,000 Cylinder Exchange Points nationwide.
The model also includes provisions for continuous validation, maintenance, and recertification of LPG cylinders to reduce the risk of explosions in homes, with the Ghana Cylinder Manufacturing Company playing a key role in this process.
Mr. Bonuedie reiterated that the CRM aligns with Ghana’s commitment to the SDGs, particularly the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all by 2030.
By promoting clean cooking solutions, the CRM supports national efforts to improve public health, protect the environment, and advance social development.
Arch Holdings’ statement reinforces its dedication to the growth and sustainability of Ghana’s energy sector while addressing misconceptions about its ownership and business practices.
