$24.7m LPG bottling plant under review as completion stalls – Energy Minister

Business

Els: MBN360 News

The Liquefied Petroleum Gas (LPG) bottling plant at Axim, in the Ellembelle, Ajumuro, and Gwira area of the Western Region, is currently under review, Energy and Green Transition Minister John Jinapor has informed Parliament.

The project, implemented as an Engineering, Procurement, and Construction (EPC) initiative under the National Cylinder Recirculation Model programme, is valued at approximately $24.7 million.

It was awarded on 19th October 2021, with construction beginning on 13th July 2022 and an initial target completion date of July 2024.

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However, Mr Jinapor noted that on assumption of office, the project was far from completion, with about $8 million already expended and only 20% of procurement and site construction completed.

“I personally invited the board to inquire from them what was holding the work,” the Minister told Parliament. He explained that while the board had undertaken front-end engineering design, key market and feasibility studies for LPG sources—critical for the factory—had not been conducted prior to awarding the contract.

Consequently, the board has initiated a detailed review and audit of the project and commissioned independent market and feasibility studies. These studies are expected to be completed by the end of the second quarter of this year and will be submitted to the Minister.

“Upon receipt of this report, we would then be informed, and from an informed point of view, we would make a decision on how to proceed with this project,” he said.