Speaking during a panel at Africa Energy Week (AEW): Invest in African Energies 2025, Edward Abambire Bawa, Group CEO and Managing Director of GOIL PLC, said the company was spearheading a transformative expansion in LPG storage capacity to address growing domestic demand and to strengthen the country’s energy security.
Guided by the 2024 baseline consumption of 340 million kilograms of LPG sold nationally, this strategic expansion aims to bridge critical supply gaps where current storage capacities only cover two to three weeks of national demand. “This storage limitation is a challenge and a prime investment opportunity.
GOIL’s recent initiatives demonstrate a broad commitment to infrastructure development. This includes the launch of multiple Autogas stations across five regions nationwide, including Accra and Kumasi. Additionally, the inauguration of a polymer-modified bitumen terminal in Tema aims to support related energy needs.
The company recognizes the challenges presented by limited LPG infrastructure, especially in rural areas. It is committed to expanding access through well-designed policies, greater investment, and innovative business models, including digital payment solutions that cater to household cash flows.
“Our research at GECF highlights that LPG is a critical component within the broader narrative of gas’s role in sustainable development. Monetising gas is not simply about producing greater volumes but about creating value along the entire supply chain. This encompasses production through storage, transportation, distribution, and finally reaching the household consumer.
“We caution against mistaking policy as the solution itself. Policy acts as a catalyst to break poverty and energy poverty traps, accelerating monetisation through industrialisation and job creation for Africa’s youth. However, if policies are poorly designed or inconsistent, they risk market distortions or abrupt collapses.
Sebastian Wagner, Managing Partner at DMWA Resources, citing successful experiences in countries like Rwanda, stressed the importance of stable regulations, transparent investor incentives, and innovative business models like digital payments to match household cash flows.
Speaking from a South African perspective, Sesakho Magadla, CEO, PetroSA, noted, “LPG demand in South Africa is largely driven by population growth and energy demand increases, yet infrastructure development continues to lag behind. We currently see about 350,000 metric tons of LPG consumed annually, with peak demand reaching 550,000 metric tons in winter and summer months.
“New investments in reverse flow pipelines and terminals in Durban is therefore aimed at unlocking the capacity needed to meet national demand. But it is only through public and private sectors collaborating closely, with projects like SANPC and Avedia Energy, that we will improve LPG importation and distribution capacity for improved market stability and access.”
SOURCE
African Energy Chamber
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