Pricing of Atuabo Gas, pressure and quality must be checked – COPEC

The Chamber of Petroleum Consumers (COPEC) is demanding an independent public testing of random samples of Liquefied Petroleum Gas (LPG) from retail outlets supplied by the Ghana National Gas Company from its Atuabo Plant.

They are also calling on the company to declare the ratio of Propane to Butane in the LPG produced from Atuabo.

According to COPEC, this will put to rest the quality parameters and standard of liquefied Petroleum Gas (LPG) and the observed high pressures from gas supplied by the Ghana National Gas Company.

The Ghana National Gas Company Limited (GNGC), last week debunked claims by COPEC that they supply contaminated Liquefied Petroleum Gas (LPG) from the Atuabo Gas Company to consumers.

They also denied that LPG supplied by GNGC at its Atuabo Gas Processing Plant is more expensive compared to imported LPG.

In a statement issued by the Chamber of Petroleum Consumers (COPEC), Executive Secretary, Mr. Duncan Amoah  insisted that, “based on complaints from consumers of LPG produced from Atuabo, we maintain that the Propane level in Atuabo LPG is unnecessarily higher than expected, and this has been partly blamed for some of the rampant fires the country has seen over the past years including domestic and retail outlet fires as adduced to by the LPG marketers on public record”.

“It is our value proposition that Atuabo checks these parameters going forward and also publish the P-B ratio of the gas it pumps onto the local market and where found to be higher in propane as our initial checks point to, causes a massive public education on the need to acquire storage bottles that are produced and specified as propane bottles together with the necessary cables to avert the rampant leakages due to the high pressures associated with the gas from Atuabo.”

“Further, beyond the calling on Atuabo Gas Company to declare the ratio of Propane to Butane in the LPG produced, we also demand an independent public testing to be conducted on random samples picked from some retail outlets at some accredited laboratories in order to put to rest the quality/standard issues and the observed high pressures from gas supplied by Atuaboa” the statement noted.

Among other demands, COPEC is also asking for, “an immediate review of the cost of LPG supplied by Atuabo to ensure Ghanaian LPG consumers do not continue to pay higher for locally produced gas whiles the imported one rather sells cheaper.”

COPEC explains that since Atuabo does not charge any premiums on the benchmark FOB, the production cost should be much lower at Atuabo and by inference market price also.

“…But the reverse seems to be the case currently due to a certain bad offtaker agreement previously signed, and we need an immediate review to ensure Ghanaian LPG consumers do not continue to pay higher for locally produced gas whiles the imported one rather sells cheaper.

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Background

On May 21, 2020, the Chamber of Petroleum Consumers, COPEC, petitioned the Ministry of Energy to address some issues with Liquefied Petroleum Gas, LPG, supplied by the Ghana National Gas Company.

According to COPEC, these issues have contributed to the increase in the price of the product in some parts of the country.

COPEC also stated that LPG supplied by Ghana Gas at its Atuabo Gas Processing Plant is more expensive compared to imported LPG.

They also said that despite the price differentials, some Oil Marketing Companies are being forced under a policy of zonalisation to buy and sell to consumers.

On 23rd May, 2020, the Ghana National Gas Company Limited (GNGC), debunked COPEC’S claims.

They said that unlike other suppliers of LPG who add the producer’s premium to the benchmark pricing, the company says as a matter of responsiveness to the Ghanaian consumers, it does not add a premium on the benchmark free on board (FOB) price.