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Sheikh Ahmed issues directive on the regulation of LPG trading

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Supreme Council of Energy (DSCE), has issued Directive No. 3 of 2021 on the regulation of Liquefied Petroleum Gas (LPG) trading, in order to protect the environment and society, by implementing the highest standards of safety and security. This includes the transportation, storage, and distribution of LPG, whether through cylinders or transport tanks.

The Directive stipulates that it is prohibited to distribute LPG cylinders in Dubai unless they are filled in the approved LPG factories in the Emirate. This ensures compliance with all standards and regulations issued by local departments.

In its Directive, the DSCE stipulated the necessity of obtaining its authorisation to issue the permit to complete all approvals and requirements from government authorities in the Emirate, according to their respective requirements. The DSCE will coordinate with government authorities to conduct joint inspection campaigns to ensure that workers in this sector follow the Directive and apply the highest safety and security standards.

“Through this Directive, we outline the regulatory framework, strategies and regulations for LPG trading in Dubai, in accordance with the highest international standards in this area. We also work to regulate business practices and implement the highest international safety and security standards. We aim to ensure transportation, storage and distribution of LPG according to the approved criteria in the UAE. We thank all authorities involved in regulating this sector,” said Saeed Mohammed Al Tayer, Vice Chairman of the DSCE.

The DSCE is the sole entity in Dubai to carry out all tasks and powers according to Federal Law No. (14) of 2017 as well as the decisions issued thereby, in particular, to issue permits for trading in petroleum products in Dubai and to determine the petroleum materials that may be traded, the activities associated therewith, and the control and inspection of the facilities authorised to deal in this regard. This is based on the Federal Law No. (14) of 2017 regarding the regulation of petroleum products trading and Decree No. 8 of 2020 regarding the appointing of the competent entity in the Emirate of Dubai responsible for implementing Federal Law No. (14) of 2017 for petroleum products trading.

The Directive also states that issue or renewal of licenses to distribute LPG and its derivatives in Dubai requires written approval from the Dubai Supreme Council of Energy (DSCE). This confirms the distributor has a valid contract showing commitment to safety and security criteria, with the approved bottling plants in the Emirate,” said Ahmed Buti Al Muhairbi, Secretary-General of the DSCE and Chairman of the Dubai Regulatory Committee for Petroleum Products.

“We would like to thank the Dubai Regulatory Committee for Petroleum Products members for their efforts to protect individuals, society and organisations. This is by ensuring the effective application of policies related to petroleum products trading as well as inspections,” said Burhan Al Hashemi, Vice Chairman of the Dubai Regulatory Committee for Petroleum Products.

Last year, Enoc Group’s subsidiary Emirates Gas and Emarat have jointly introduced a new seal for LPG cylinders that not only adds to the safety of users but also maintains the availability of authentic products, increases operational efficiencies in the market and protects consumer rights.

The unified Polyvinyl Chloride, PVC, seal has various new elements including colour, material, position of the hologram and a unique serial number along with tamper-proof features.

Green in colour, the new seal carries the hologram of Emirates Gas and Emarat, each with a unique serial number positioned horizontally on the shrink seal to mitigate any illegal distribution of LPG cylinders by unauthorised distributors. Unlike the old LPG cylinder seal, the new seal is equipped with an aluminium foil cap which is impossible to duplicate and reuse after it is unpacked once.

Earlier, Emirates Gas used a yellow seal whereas EMARAT had a white seal and both entities used their own unique serial number. In order to further enhance safety, the hologram has now been positioned at the top of the cap which will get damaged once the seal is broken as it is made of thin aluminium foil and attached to the seal.

With the launch of its unified seal, Emirates Gas and Emarat urge customers to buy LPG cylinders only from authorised distributors and ensure the seal is intact and only cut in front of them after the purchase is made.

Customers should also request a validated VAT invoice from the distributor for each transaction as per the UAE Government regulations, which can be used as proof if any complaint needs to be raised.  Emirates Gas and Emarat are the only two Government authorised entities allowed to fill LPG cylinders at its bottling plants located in Dubai. LPG cylinders are flammable and are required to be thoroughly checked before every filling to ensure zero leakage and no safety hazards such as cylinder bulge that can lead to unwanted accidents.

WAM

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