Quantum rejects foreign ownership claims

… underlines investment in domestic LPG infrastructure

Quantum, Sage and Arch Holdings Limited, has moved to clarify its ownership structure, vehemently denying recent media reports mischaracterising it as a foreign entity.

The company insists it is a homegrown business with a deep-rooted commitment to the nation and active participation in the government’s Cylinder Recirculation Model (CRM).

“We are 100% Ghanaian-owned entities, directly employing over 2,000 Ghanaians, and have been active in Ghana’s petroleum sector since 2009,” a letter signed by Samuel Bonuedie, Head of Brands & Communications at Quantum Group, stated.

The company emphasised its vertical integration within the petroleum downstream value chain, a structure permitted by the existing regulatory framework.

A key aspect of its operations is its support for the CRM, a government initiative to increase LPG penetration and improve safety. Newgas, a subsidiary of Arch Holdings Limited has invested heavily in a state-of-the-art bottling plant, completed in late 2023 despite the challenges posed by the COVID-19 pandemic.

“We made the strategic decision to apply for a license to build and operate a bottling plant at a time when other more resourced companies declined to participate due to the financial risks involved,” the communique explained.

However, Newgas has clarified that its role is strictly confined to cylinder filling. The distribution and retailing of LPG remain the exclusive domain of Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs). The company added that it is actively seeking partnerships with these entities to expand the reach of LPG across the country.

“The main goal of the Cylinder Recirculation Model is to increase LPG penetration and accessibility. It is Government’s objective that OMCs/LPGMCs develop over 5000 Exchange Points across the country to support the CRM,” it said.

Newgas’ involvement in the CRM is aligned with the government’s broader push to promote clean cooking and reduce reliance on wood fuels, which contribute to deforestation and public health issues. By improving access to LPG, the company aims to contribute to the achievement of Ghana’s Sustainable Development Goals (SDGs).

The company’s statement comes at a time when the government is intensifying its efforts to transition households from wood fuels to cleaner energy sources. The CRM is seen as a critical component of this strategy.

By clarifying its ownership and role, Quantum, Sage & Newgas hopes to dispel any misconceptions and strengthen its position as a key player in the LPG sector, it said.

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