Ghanaian hospitals, marking a shift in the country’s medical oxygen supply chain from cylinder-based distribution to a storage-based system designed to reduce shortages and improve reliability.

The company delivered the first made-in-Ghana liquid oxygen supply to the Lekma Hospital, where a cryogenic storage system has been installed to receive, store and distribute the product through the facility’s oxygen network.

Managing Director of Indo-Ghana Industries, Varun Tyagi, said the move addresses long-standing challenges associated with transporting medical oxygen in cylinders, including delays, high logistics costs and supply interruptions.

“Over the years, one of the biggest challenges when it comes to distribution of oxygen is that the packaging material, the cylinders, are much more expensive than the product itself. In Africa, distribution costs are too high,” he said.

Indo-Ghana, which began operations in Ghana in 2010, initially focused on the production and supply of gaseous oxygen. The company expanded into liquid oxygen production after identifying distribution constraints that became more visible during the COVID-19 pandemic, when demand for medical oxygen increased sharply.

According to Mr. Tyagi, the cylinder-based model required hospitals to continuously request refills as empty cylinders were returned for replenishment, creating risks of delays caused by transportation challenges and road conditions.

Liquid oxygen changes the supply model by increasing storage capacity. The company said a single storage tank can hold the equivalent of about 1,000 cylinders of gaseous oxygen, allowing hospitals to maintain larger reserves and reduce frequent deliveries.

“At Lekma, the quantity of liquid that we supplied can sustain them for a period of at least three months. They can now be assured that for the next three months they have oxygen available in their facility,” Mr. Tyagi said.

The transition has been supported by investments that have enabled hospitals to receive and store liquid oxygen. Mr. Tyagi said the initial challenge was not only producing liquid oxygen locally but ensuring healthcare facilities had the infrastructure to accept it.

He said support from development partners, including USAID, CHAI and JHPEIGO has helped provide liquid oxygen storage tanks to about 10 hospitals, while another five facilities received similar support through other programmes, bringing the total number of hospitals equipped to receive liquid oxygen to about 15.

Lekma’s Head of Clinical Engineering, Saviour Demordzie, said the new system has already improved oxygen availability at the facility by providing a more stable supply and reducing reliance on emergency cylinder deliveries.

“Our frequent calls for oxygen have reduced. There is a constant pressure and flow of oxygen at the facility. And because it is a liquid oxygen plant, we have a higher purity of oxygen delivered to the patient,” he said.

Before the installation of the liquid oxygen system, Mr. Demordzie said the hospital relied largely on oxygen cylinders, creating uncertainty when supplies ran low.

“Initially, you had to call vendors when the oxygen was finishing, and if you were not fortunate, the unfortunate could happen,” he said.

The hospital’s previous oxygen systems produced oxygen concentration levels of between 90 percent and 92 percent, while liquid oxygen provides oxygen purity closer to 99 percent, he said. Higher oxygen concentration is important in supporting patient treatment, particularly in critical care settings.

Indo-Ghana’s Engineer, Eduardo Bojador Bonifacio, said the new system improves efficiency by reducing manual handling and allowing automated supply through pipelines connected to hospital wards.

“This one can save time and minimise human error in supplying oxygen to patients,” he said.

The company’s Apollonia Industrial Enclave facility has the capacity to produce liquid oxygen locally, with Indo-Ghana currently producing about 10 tonnes per day and planning additional capacity expansion. The company also produces other industrial gases, including nitrogen, argon, acetylene, ammonia and beverage gases.

Mr. Tyagi said the company’s next phase is to develop a hub-and-spoke distribution model, where liquid oxygen production is concentrated at central facilities while smaller filling stations are established closer to hospitals across the country.

“The idea is not just to limit it to one hospital. If there is a hospital in Yendi or any other part of Ghana, we want to supply through regional hubs so that the distance reduces and dependency reduces,” he said.

However, the company identified several challenges that could affect the sustainability of medical oxygen supply. These include delayed payments from some hospitals, rising electricity costs and limited access to long-term financing.

Mr. Tyagi said electricity accounts for about 42 percent to 45 percent of production costs, making power tariffs a major factor in the cost of medical oxygen.

He also called for medical oxygen producers to be recognised as critical service providers, similar to arrangements in other countries where oxygen manufacturers receive priority support during power disruptions.

“Medical oxygen production falls under critical industry. There should be provisions to ensure that if there is any power reduction or outage, companies producing oxygen are informed early and arrangements are made so that they are not disconnected,” he said.

The company is also engaging with the Ministry of Health following the introduction of a national medical oxygen policy, which Mr. Tyagi said would support better monitoring of consumption, planning and supply management.

He said the use of telemetry systems in newly installed tanks would allow hospitals and policymakers to track oxygen consumption patterns and prepare for periods of higher demand.

“We are moving Ghana towards the next generation of medical services. Liquid oxygen is the first step towards making sure we are able to reach the last mile and make oxygen more accessible across the country,” Mr. Tyagi said.