-US$11M revenue losses expected in 24 months
The management of the Liberia Petroleum Refining Company (LPRC) has finally commenced the construction of a total 90,000 metric ton storage capacity, office facilities, parking lots and loading gantry to modernize and expand its Product Storage Terminal (PST) and others.
Authorities of LPRC recently signed a contract valued at US$21.8 million with Lutech Engineering and Project Management Consultants (FZC), a foreign-based company.
Speaking to reporters yesterday during a tour of the ongoing construction work, the Managing Director of LPRC, Sumo G. Kupee, said the purpose of the tour was to inform the general public about the latest development unfolding at his entity, which will bring the LPRC facility up to date.
Director Kupee said the ongoing construction work will not impact or cause any shortage of products on the Liberian market, adding that “Arrangement was made with private companies to provide additional storage capacities for LPRC to circumvent the shortage of product.”
He said the management will be losing revenue to the tune of US$11 million dollars for the next 24 months due to product loss (leakage of tanks) and revenue loss as the result of transferring commodities to other tanks (two private companies have been hired to ensure that enough product is on the market), adding that “There is a need to speedily complete the storage work.”
Director Kupee further disclosed that upon completion of the ongoing work, there will be increment of revenue and product due to additional storage capacities at the entity.
Phase one of the contract, Mr. Kupee said, will cover basic work including the construction of two 80-ton truck weigh bridges; a central control room; new operations building; a tank farm fire protection system; completion of two service tanks (fire water and slop tanks), among others.
Bobby Brown, Technical Services Manager, said the first phase of the project focuses on the demolition and construction of the six storage tanks, which include three gasoline tanks, two fuel tanks, and a fire tank which is partially completed, among others.
This phase of the project, Mr. Brown said, will also construct a loading gantry (where the truck goes to take a product), which is currently taking only four trucks at a time, but will accommodate nine (9) trucks at a time upon completion, adding: “Additional nine trucks will be parked awaiting the removal of the already loading nine vehicles.”
With the building and security, he said “We will have a one storage building with a flat-top to ensure that there is space for future construction in case of need of additional offices. On the issue of security of our product, we are using a manual level, but upon completion of this phase, we will graduate from the manual level of protecting our product.’
Lutech is a dynamic engineering, procurement, and construction company with an international presence, specialized in the construction of fuel/gas oil storage terminals, water treatment, supply and distribution, transmission and distribution of power.
LPRC is one of the oldest terminals in the sub-region, which was initially constructed as a private corporation before the Government of Liberia took over management of the company 30 years ago as a state-owned enterprise.