The Minister for Energy and Green Transition, John Abdulai Jinapor, has disclosed that government has secured $6 million of the estimated $8 million required to rehabilitate the Ghana Cylinder Manufacturing Company (GCMC).
According to the Minister, retooling works at the state-owned manufacturing firm are already underway as part of efforts to restore operations and strengthen Ghana’s local capacity to produce LPG cylinders.
Dr. Jinapor explained in Parliament that the intervention is designed to boost domestic manufacturing and position the company to meet national demand for gas cylinders.
“We’ve been able to mobilise about $6 million for them, and the retooling is going on. In fact, if you look at what they’ve produced this year, it’s more than double what happened in 2024. And so we are on course to revamp Ghana’s cylinder, we are on course to retool it.”
He indicated that the government’s long-term strategy is to ensure that LPG cylinders used in the country are eventually produced locally.
The Minister further noted that once domestic production capacity becomes adequate, authorities could consider a gradual ban on imported gas cylinders in order to support local industry and retain value within the economy.
“We are giving them off-taker agreements and setting an escrow account. So as part of the cylinder recirculating model, as minister, I’ve issued a directive that we recall all the old and obsolete cylinders, so that Ghana’s cylinder would retrofit them and make them useful. And also we’ve signed an agreement with Goyal, so that Goyal will be the off-taker for the cylinders as part of the Ghana’s cylinder recirculation model”, the Minister added.
The rehabilitation of GCMC forms part of broader efforts by government to revitalise strategic state-owned enterprises, deepen industrialisation and reduce Ghana’s reliance on imported petroleum-related equipment.
It is expected that, the strengthening of local LPG cylinder production could also support the country’s clean cooking agenda by improving access to safe and affordable gas infrastructure while creating jobs in the manufacturing sector.
