Monrovia – The Liberia Petroleum Refining Company (LPRC) and Starcom Energy and Trading Limited have signed a memorandum of understanding to import petroleum products into the Liberian market.
By J.H. Webster Clayeh (0886729972)[email protected]
Starcom Energy and Trading is a global commodity trading company and stands as one of the best suppliers of petroleum products in the ECOWAS and Americas regions. Presently, it is among the top companies in the import and export of petroleum products in Ghana. Starcom has offices in Dubai, U.A.E., and Accra, Ghana.
Starcom has agreements with various international trading partners, giving it the ability and flexibility to secure a consistent quality of finished petroleum products. Additionally, it enables Starcom to leverage the financial capabilities of its partners to provide local off-takers with more financial flexibility.
Speaking at the signing ceremony in Monrovia, the Managing Director of LPRC, Amos Tweh, referred to the partnership as a milestone achievement since the founding of LPRC.
According to Mr. Tweh, although it is part of LPRC’s statutory responsibility to import, distribute, store, and sell petroleum products, this is the first time in many years that LPRC will be embarking on what he terms as a momentous journey.
“The role of importing petroleum products has been franchised to private companies for many years. As part of the new government vision to ensure the affordability and availability of petroleum in the Liberian market, the LPRC Management, with the approval of the Board, deems it necessary to begin the importation of petroleum products into the Liberian market,” MD Tweh said.
The LPRC boss added: “We believe it is necessary to ensure energy security for our country and, at the same time, to ensure market stabilization and balance overall.”
He furthered that since his appointment as Managing Director, LPRC has been in talks with several potential petroleum entities in the Sub-region to supply products to Liberia.
“Over the months since we came, as a result of our discussions, the management of LPRC, with the board’s approval, has seen it necessary to forge a strong partnership with Starcom Ghana for the supply of petroleum products in the Liberian market,” Mr. Tweh stressed.
Mr. Tweh clarified that while LPRC is going to import the petroleum products, they are not going to enter the retail market. The products, he says, will be imported for energy security and to ensure that Liberia increases what he terms as strategic reserves.
“Our only desire is that we do not, especially under the leadership of President Joseph Boakai at any point in time, experience anything called an artificial shortage of petroleum products in the Liberian market. So, we are very pleased today to sign a supply agreement with Starcom Ghana Limited,” he said.
Mr. Tweh added: “The petroleum products we are going to import here are not owned by LPRC; we have entered into this supply agreement with the sole purpose of ensuring that we increase our strategic reserves as a country. When the product comes into the country, we will distribute it to importers and distributors.”
Also speaking, the Executive Director of Starcom Ghana Limited, Harry Campbell, a Ghanaian, said his entity has been in talks with LPRC for years, and he is happy that the engagement has finally become a reality.
“We are a Ghanaian-based oil distributing company with an office in Dubai for four years now. We are one of the best importers of oil in Ghana and West Africa,” Mr. Campbell said.
He added: “We are in a position to open up the world of energy stocks to LPRC, and we hope that this partnership will flow freely and strengthen Liberia’s energy sector.”
According to the Executive Director of Starcom Ghana Limited, it is always important for coastal countries to build their infrastructure in the petroleum sector.
“What it means for you is that now you become the closest source of petroleum for all your landlocked neighbors. There is a saying that when you build, they will come. So, we are willing to partner with LPRC to ensure that happens, and in return, Ghana and Liberia will both become the petroleum hubs for ECOWAS, supplying our neighbors to the north and taking care of our domestic market,” Mr. Campbell said.