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Business News of Thursday, 1 February 2018

Source: thebftonline.com

Cylinder Recirculation Model to create 4, 500 new jobs

Implementation of the Cylinder Recirculation Model, which is expected to begin this year, will create an estimated 4,500 new jobs along different levels of the supply chain.

An official statement from the Corporate Affairs Division of the National Petroleum Authority (NPA) said: “Direct job losses are estimated to be about 400 in relation to the estimated number of refilling plants that will be converted to Auto-gas outlets. Direct job creation is however estimated to be over 4,500 in relation to new jobs.

“This does not affect current jobs of LPG Bulk Transporters, LPG Bulk Distribution Companies, and LPG Bulk Storage companies, or the retail outlets that will transition into distribution centres.”

The NPA will also recruit over 200 Safety Auditors throughout the country, while it will resource its newly-established Health Safety, Security and Environment (HSSE) department resulting in more job opportunities. There will be a number of indirect jobs created for installations, maintenance, fabrication and other services, the NPA said.

“In terms of remuneration, the new jobs are expected to even offer better remuneration because we anticipate the demand for LPG to increase – which translates into higher profit margins for the players and thereby results in higher wages,” the statement added.

The NPA revealed that the committee, set up in November last year to facilitate the model’s implementation, has concluded the roadmap for it to be carried out by three sub-committees.

“To facilitate implementation of the roadmap, three sub-committees have been formed to undertake the following activities: develop a new LPG pricing structure; develop a new licence, permit and legal framework; and to develop new Health, Safety, Security and Environment (HSSE) procedures,” the statement read.

The sub-committees have begun work and are expected to conclude by the first quarter of 2018.

Announcement of the Cylinder Recirculation Model, last year, was met with strong opposition from the Liquified Petroleum Gas Marketers (LPGMCs) and the Ghana Liquefied Petroleum Gas Operators Association (GLiPGOA).

There were fears that the new arrangement would lead to job losses and create inconvenience for LPG users. However, the NPA says it has, together with the Ministry of Energy, had a series of engagements with both groups to address concerns and incorporate their feedback into implementing the model.



According to the statement, the Cylinder Recirculation model will be implemented alongside the old model of LPG distribution – with the latter being phased out by the end of the year.

Government, in October 2017, introduced the Cylinder Recirculation Model following a gas explosion at Atomic Junction in Accra, which resulted in the death of 7 people and injuries to 132 others.

Among other stringent measures to ensure safety in the handling of petroleum products, the NPA was issued a directive to implement the Gas Recirculation Model within a year.