The Minister of Energy and Green Transition, John Abdulai Jinapor, has announced that Ghana plans to eventually ban the importation of Liquefied Petroleum Gas (LPG) cylinders as part of efforts to promote local manufacturing and strengthen the domestic energy industry.

Speaking on the floor of Parliament, the minister said the government intends to ensure that all LPG cylinders and canisters used in the country are produced locally once the policy is fully implemented.

According to him, the ministry is working with the National Petroleum Authority and the Ghana National Gas Company to revamp the Ghana Cylinder Manufacturing Company Limited (GCMC) to support the initiative.

Retooling Ghana Cylinder Manufacturing Company

Mr John Abdulai Jinapor told lawmakers that estimates show about $8 million is required to fully modernise the company, adding that approximately $6 million has already been mobilised for the retooling process.

He said the ongoing upgrades have already started yielding results, noting that the company has doubled its production this year compared with its output in 2024.

“I think we are on course to revamp Ghana Cylinder and we are on course to retool it,” he said.

The minister also explained that the government is introducing off-taker agreements and establishing an escrow account to ensure sustainable operations for the company.

Cylinder recirculation programme

As part of the Ghana Cylinder Recirculation Model, the ministry has directed the recall of old and obsolete cylinders so they can be refurbished and returned into circulation.

Mr Jinapor revealed that the ministry has signed an agreement with GOIL PLC to serve as the off-taker for cylinders produced under the programme.

He assured Parliament that the government remains committed to transforming the Ghana Cylinder Manufacturing Company Limited into a modern and efficient manufacturing facility.

Call for more investment

During the parliamentary discussion, the Member of Parliament for Tano South, Charles Asiedu, called for additional capital injection into the Ghana National Gas Company to help upgrade production lines at the cylinder manufacturing company.

He also urged the government to promote partnerships between the state, private investors and LPG marketing companies to expand the market for locally produced cylinders.

Mr Asiedu further suggested that public institutions should prioritise the sale of LPG products and accessories manufactured by the Ghana Cylinder Manufacturing Company Limited as a matter of policy.

Expanding LPG access

The lawmaker said strengthening the company would also help Ghana take advantage of trade opportunities under the African Continental Free Trade Area (AfCFTA) by exporting cylinders to neighbouring markets where demand for clean cooking solutions is increasing.

He also stressed the importance of public education on the health, environmental and economic benefits of using LPG instead of traditional fuels such as charcoal and firewood.

According to him, wider adoption of LPG would help protect forest reserves, improve indoor air quality and reduce greenhouse gas emissions.

LPG adoption targets

Citing the 2023 industry report of the Ghana Chamber of Bulk Oil Distributors, Mr Asiedu said LPG currently serves as the primary cooking fuel for about 40 per cent of Ghanaians.

He added that the country is targeting 50 per cent LPG penetration by 2030.

Despite its strategic role in supporting LPG use, the Ghana Cylinder Manufacturing Company Limited has struggled in recent years, including recording a loss of GH¢4 million in 2021 according to the Audit Service of Ghana.

In 2023, the company was acquired by the Ghana National Gas Company in an effort to stabilise its operations and prevent collapse.

Mr Asiedu said a revitalised cylinder manufacturing company would help expand LPG access, create jobs, support local industry and contribute to Ghana’s climate commitments.