Wednesday, May 1, 2024
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Expo 2024: Galp reports on the challenges of LPG accessibility

The accessibility of Liquefied Petroleum Gas (LPG) in residential areas of Mozambique was the main focus of the speech by the president of Galp Mozambique, Paulo Varela, at the LPG Expo, held in Maputo on the 17th and 18th. Varela emphasized that making LPG available close to inhabited areas remains the main obstacle in the supply of this fuel in the country.

During the event, which addressed investments in infrastructure in Africa, the executive highlighted Galp ‘s active role in the fuel market and its expansive ambitions. “In addition to Mozambique, we are investing in countries such as Namibia, Angola, Guinea-Bissau and Cape Verde. Demand for LPG should grow with supply, with investments focused on regions such as Nampula, increasing proximity to our customers,” said Paulo Varela.

Varela acknowledged the challenges facing the industry, stressing the need for a strategy that combines subsidizing LPG for the most vulnerable segments with a pricing policy that ensures investment recovery.

The president of Galp Moçambique also highlighted the importance of technical issues, such as the control of LPG cylinders and ensuring that each company operates with its own model and valve, increasing safety and encouraging more investment in infrastructure.

“It is essential to expand the LPG reception and storage infrastructure in the Northern Zone to make the product more accessible in regions that are currently underserved. The private sector has been the main driver of these initiatives, although the government’s actions also contribute to facilitating access for the most disadvantaged population,” said Varela.
The head of Galp Moçambique concluded by emphasizing the population growth in Mozambique and Africa as an opportunity for expansion for the LPG sector, but recalled that overcoming the existing challenges is essential to capitalize on this trend.

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