LPG bulk storage and distribution in Sierra Leone

• Project location: Freetown, Sierra Leone
• Consortium: Geogas Trading S.A., Benco Trading Ltd.
• Project budget: Euro 1,500,000
• External financing: 60% grant funding by PSI Plus 
• Project period: June 2009 - June 2011

Fuel wood usage accounts for well over 80% of the total energy utilized in Sierra Leone. Aside from the evident adverse ecological impact of deforestation and CO2 emissions, the use of wood and charcoal for cooking places a particularly heavy burden on women. In other West African countries, LPG has proven to be the most feasible alternative cooking fuel. In Sierra Leone, however, few people can afford LPG, being far more expensive than in other African countries. The principal reason behind the high retail price is the absence of bulk storage facilities, so that only small containers can be imported at high costs. Inefficiencies downstream contribute to the elevated retail price.

Geogas Trading from Switzerland and Benco Trading from Sierra Leone implement a project that will reduce the LPG retail price to less than 30% of its current level. The spectacular price drop and reliable availability, combined with introduction of a low-cost kit (comprising a 5 kg cylinder and gas cooking unit), will drive the wide spread use of LPG in Sierra Leone, to eventually align with consumption elsewhere in West Africa.

The project’s principal investment concerns establishment of a bulk storage facility. In addition, cylinder filling stations will be set up in Freetown and three provincial towns, the latter to be operated by other local enterprises. Two LPG delivery trucks will be purchased to supply the gas to the filling stations. Considerable training will be delivered with regard to technical, safety and administrative aspects. The project will provide new direct employment to 70 persons and generate income earning opportunities for about 20 distributors serving the retail end of the chain. Reliable availability of affordable LPG will also provide a boost to small enterprises that depend on energy.