Under the visionary leadership of His Excellency President Joseph Nyuma Boakai, Sr., and in alignment with the ARREST agenda of the Governing Unity Party, below are a few strategic goals of the Current LPRC Management, headed by Hon. Amos B. Tweh
1. Renegotiation of the 17,000 cm³ PMS Storage Tank Contract.
LPRC successfully renegotiated the contract with Ecobank and LUTECH Engineering and Project Management Consultants FZC JV, leading to the following key outcomes:
Reduction in Interest Rate: The interest rate was reduced from 11% to 9%, saving the Government of Liberia $450,000 over three years.
Increased Storage Capacity: The construction of a new 17,000 cm³ PMS storage tank, equivalent to 12,800 metric tons, will increase LPRC’s total capacity to approximately 64,000 metric tons.
Inclusion of a State-of-the-Art Petroleum Testing Laboratory: A modern petroleum testing laboratory has been included in the project at no additional cost to LPRC. This facility will ensure the quality and safety of Liberia’s petroleum products.
2. Increased Contribution to the National Budget.
Under the stewardship of Hon. Tweh, LPRC has contributed US$2.5 million to the National Government’s budget, surpassing the entire fiscal year 2023 contribution of US$1.3 million.
3. Regular Monthly Reductions in Petroleum Prices.
Since the appointment of the new management team, there has been a consistent monthly reduction in the retail pump prices of petroleum products (gasoline and fuel) on the Liberian market.
4. Reintroduction of the Internship Program.
LPRC has reintroduced its internship program, aimed at providing young Liberians with professional development opportunities. The program helps students gain valuable job experience by shadowing professionals and acquiring essential hands-on skills.
5. Compliance with Procurement Regulations.
The Management has maintained strict compliance with Liberia’s procurement regulations, ensuring transparency and accountability in its operations.
6. Increased Importation of Petroleum Products.
The company has witnessed a significant increase in the importation of petroleum products under new LPRC Management, ensuring a stable supply for the Liberian market.
7. Signing of the Second Collective Bargaining Agreement (CBA).
A Collective Bargaining Agreement was signed with the LPRC Workers Union which significantly addressed the longstanding issue of salary disparities.
8. Implementation of the First Tank Policy.
LPRC has introduced the First Tank Policy, which mandates that petroleum products will only be allowed to be offloaded if LPRC does not have space in its tanks. This ensures efficient management of storage capacity.
These achievements underscore the effective leadership of the management led by Hon. Amos B. Tweh.
LPRC FIVE-YEAR STRATEGIC PLAN FOR 2024–2028.
This section summarizes LPRC’s strategic plan for the next 5 year. It highlights our objectives and targets consistent with the vision and development plan of the President, guided by the Board of Directors and the Management team.
The management will seek to deliver on the core mandate of the shareholder in a phased approach.
For our short-term plan, our strategy will include:
* Direct Importation of Petroleum-Related Products. In line with its mandate, LPRC remains the premier government enterprise leading Liberia’s downstream hydrocarbon sector, responsible for importing all finished products for consumption in the Liberian market. Over the years, this crucial responsibility was franchised to licensed petroleum importers.
The President’s vision is to ensure that quality petroleum products are available and affordable throughout the country. This vision aligns with the founding objective of LPRC. LPRC’s activities over the years have primarily focused on granting of import licenses, storage, and handling of petroleum products for registered importers, from which fees are levied to generate revenue. As part of the management effort to expand operations, increase revenue and raise the
company’s annual quota to the government it is now imperative for LPRC to broaden its scope beyond storage and handling, and begin the process of
importing petroleum products directly to the Liberian market. This decision aligns with the institution’s longstanding mandate of procuring and delivering high-quality petroleum and related products to meet the needs of the nation.
The global petroleum market continues to experience price fluctuations. This comes against the backdrop of volatile geopolitical conflicts in the Middle East, which plays a critical role in global oil production. As a consequence, and coupled with other regional dynamics such as piracies, there is a high probability that the global and regional supply chain networks for petroleum products will experience distortions in the foreseeable future. It is therefore imperative that LPRC reduce potential vulnerabilities by diversifying supply sources to ensure market stability, achieve pump price reduction and enhance sustained revenue growth.
* Pursuing Funding for Additional Storage tank construction.
The construction of additional petroleum storage tanks at the PST is a proactive measure to enhance energy security, stabilize markets, increase revenue generation for LPRC and ensure a reliable supply of petroleum products for economic growth and national resilience.
Increasing storage capacity ensures a buffer against supply disruptions caused by natural disasters, geopolitical tensions, or unforeseen events, thus ensuring a stable supply of petroleum products. Furthermore, adequate storage capacity helps the government of Liberia stabilize prices by absorbing fluctuations in supply and demand. This prevents sudden price spikes or crashes due to temporal imbalances. Finally, in times of crisis, such as pandemics (Ebola, COVID-19 19 etc.), having surplus storage capacity is crucial for stockpiling essential fuels to meet emergency needs and maintain essential services.
In support of its mandate to import and store all refined petroleum products for Liberia’s market, LPRC will initiate funding negotiations for the construction of two tanks, totalling a capacity of 23,000 MT, effectively raising the overall storage capacity to 74,000 MT.
* Planning for Mini-Refinery Construction
The planning for mini-refinery construction by LPRC represents a strategic investment in energy independence for the government of Liberia, economic growth, value addition, supply stability, and environmental sustainability. The construction of a mini refinery will enhance our energy security by reducing dependence on imported refined petroleum products and promoting self-sufficiency in fuel production.
It will also create jobs and stimulate economic development in the region, both during the construction phase and through ongoing operation and maintenance activities.
* Rehabilitating the Ganta Oil Terminal (GOT)
The rehabilitation of Ganta Oil Terminal (GOT) is essential for infrastructure development, promoting regional connectivity, boosting the economy, ensuring environmental compliance, and fostering community development. The GOT will serve as a vital hub in the distribution network, facilitating the transportation of petroleum products across bordering towns in Guinea, Nimba, Bong and Lofa and the southeastern regions.
Rehabilitating GOT enhances the overall infrastructure for handling petroleum products, ensuring safer, more efficient operations. Also, a functional GOT contributes to economic growth by supporting industries reliant on petroleum products.
* Upgrading and Accrediting the LPRC Testing Laboratory.
Upgrading the testing lab at LPRC to international standards is crucial for performing internationally acceptable testing on all refined petroleum products coming into the country for several key reasons. Firstly, adherence to international standards ensures that the testing procedures and results are recognized and respected globally, enhancing the credibility and reliability of the testing conducted by LPRC. This is particularly important for maintaining consistency and accuracy in assessing the quality of imported petroleum products, which is essential for consumer safety and environmental protection.
Moreover, aligning the testing lab with international standards enables LPRC to comply with international trade regulations and agreements. ECOWAS countries require imported products to meet specific quality standards, and having a testing lab that operates at international standards ensures that the refinery can demonstrate compliance with these requirements, facilitating smoother trade relations and reducing the risk of trade disputes or rejections
LPRC: “Keeping The Wheels Of Industry Turning”