In Bolivia, Colombia, Ecuador, Panama and Uruguay use of LP Gas in domestic appliances is at around 95% of LP Gas demands. Brazil, Chile, Cuba, and El Salvador use more than 80% in domestic applications and this has potential to grow looking forward. As a contrast, Argentina and Costa Rica’s industrial demand is much higher than its domestic; less than 70% of their LP Gas demands are in the domestic segment.
LP Gas participation in Latin American Energy Mix :
- Argentina: 2.19%
- Brazil: 3.26%
- Chile: 3.68%
- Colombia: 2.33%
- Equator: 9.60%
- Peru: 5.50%
- Mexico: 6.65%
- Venezuela: 4.32%
Argentina, Brazil, Chile and Colombia have great potential to increase the LP Gas segment in their energy market. LP Gas represents almost 4% of the energy mix in these countries.
Equator and Peru like Mexico and Venezuela show high use of LP Gas. Ecuador is a market, where strong subsidies charges are applied by the government.
The AIGLP hosted its annual Latin American Congress in Montevideo, Uruguay in May to debate and present challenges and opportunities within the business to LP Gas Stakeholders and to focus on what is important to society in general looking forward. The theme this year was ‘LP Gas: Reliable, Versatile and Modern’. There were over 210 participants at the Congress. Key issues discussed at the conference were branding within the industry, supply, demand and LP Gas applications; innovation within the industry; mitigating the impact of climate change on our societies; operational safety practices for the industry; and the social relevance of LP Gas. Key companies and associations operating in the region were represented. This is an important event for the industry in Latin America.
The AIGPL (Asociación Iberoamericana de Gas Licuado de Petroleo ) is the interface for the Latin American industry with regulatory agencies and other LP Gas stakeholders to allow for the business to grow and operate in a healthy environment. It also helps to promote awareness to the consumer. The focus today for AIGLP is on customer value. Conclusions from the conference were that the LP Gas business will boom in Latin America over the next 4-8 years. Industry and governments in Latin America are working together to augment the use of LP Gas and its applications and to make policy more consistent with demand. LP Gas has an important role to play in global energy markets including Latin America and the industry is working hard with governments to stimulate its use. This is being done through the interaction and exchange with governments and regulating agencies from different Latin American countries and especially during Annual Conferences, to help coordinate and guarantee that challenges be discussed and also to help reach a common point
AIGLP today has 44 members in 17 different countries across the continent. Its most recent member is Superintendicia de Servicios Publicos y Domiciliarios, a Colombian regulatory responsible for LP Gas marketing practices inspections. It supports local industry to obtain best international practices, always focusing on the customer and safety.
The next AIGLP Conference will be held in May 2009, in Lima – Peru.
For more information on AIGLP, please visit http://www.aiglp.com Asociación Iberoamericana de Gas Licuado de Petroleo, (Latin American LP Gas Association)
Conference Discussion Themes
The importance of Brand in LP Gas industry
A Brand generates customer satisfaction, government inspection, and responsible companies.
Presentations included:
- Evamaria Uribe (Superintendent of Public and Domiciliation Services of Colombia),
- Carlos Orlando (Vice Superintendent of ANP Petroleum, Natural Gas and Biofuels Nation Agency of Brazil),
- Alísio Vaz (Executive Vice-president of SINDICOM of Brazil) who presented the importance of Brand in relation to LP Gas and liquid fuels Industries
- Dra. Zoila Horna (a Peruvian Lawyer),
- Cesar Bedon Rocha (Managing Director of AGLPP – Peru) and
- Eduardo Vio (of GLP Chile Association)
Supply Demand and LP Gas applications
The Supply-demand balance of LP Gas in Latin America is important because Latin America is a net exporter of LP Gas. This creates opportunities to increase LP Gas use/applications because in some large markets LP Gas is still seen as a domestic fuel.
Presentations were related to the increased production and applications of LP-Gas from:
- Alfredo Eyzaguirre (Pluspetrol – Camisea – Engineer of Peru),
- Michael Kelly (World LP Gas Association),
- Gary Eaton (Managing Director of Ely Energy) who presented a solution to the problems of Natural Gas supply,
- GNS (Synthetic Natural Gas),
- Guilherme Vinhas (Brazilian Lawyer) and
- Hector Decillis (Managing Director of Argentinean LP Gas Association – CEGLA)
Facilities and Technological Innovations
Presentations on this topic were related to how LP Gas is a versitile fuel and how LP Gas companies can better understand the customer and introduce products that generate customer satisfaction.
Presentations were done by:
- Massih NIazi (Operation Director of Primagaz (SHV) France),
- Sergio Follin (Totalgaz Argentina),
- Jonathan Benchimol (Superintendent of FOGAS – Brazil) and
- Gustavo Portas (Director of GASUR – Uruguay)
Environmental and Operational Safety practices for LP Gas Industry
Pertinent information was shared at this roundtable discussion on how LP Gas use can help reduce the Climate Change effect. The sectiona also included two case studies: Excellence in Safety and Environmental Management in the LP Gas Industry.
Presenters were:
- Miguel Esquer Ramiro (Repsol YPF – Spain),
- Daniela Gentil (Ultragaz – Brazil),
- Angelo Santos (Liquigas – Brazil),
- Jorge Arismendi (Director of LSQA – Uruguay) an Integrated Management System specialist and
- Ricardo Zubieta (Totalgaz Argentina) safety and risk specialist.
Social relevance for LP Gas
Presentations focused predominantly on how LP Gas can reduce household health problems and increase the HDI (Human Development Index) in Latin America Countries.
Please visit http://www.eoearth.org/article/Human_Development_Index for more information on the Human Development Index. Presentations also demonstrated how governments promote LP Gas use providing tax rebates/incentives. There was also a presentation on the Colombian Case of how it is possible to use LP Gas to promote better health conditions in poor communities.
Presentations were made by
- Luis Ernesto Salinas (Global Compact – UN of Colombia),
- Adriana Ulloa Acevedo (Ecopetrol – Colombia),
- Monica Loustraunau (ANCAP – Uruguay),
- Jorge Polo Vela (Managing Director of CONFEDEGAS – Colombia) and
- Marcos Swensson Reis (Independent LP Gas Consultant of Brazil)
