7 News Belize

NGCL Tells Butane Companies to Chill
posted (September 20, 2019)
Last night, you heard the Prime Minister talk about National Liquified Petroleum Gas Project Law that the House and Senate passed last month.

That law sets up a protected monopoly in which a new enterprise, called the National Gas Company, will control the country's butane supply. And that's why the current suppliers - all the major butane companies, which are owned by one Mexican supplier are crying foul - even though the Prime Minister suggested yesterday that as far as he is aware, they may be willing to go along with the plan.

But a letter that they've written to his office indicates the complete opposite. It is dated September 17th, 2019, and the companies: Belize Western Energy Limited, Gas Tomza, and Southern Choice Butane, say they have supplied Belizeans with LPG for the last 30 years, directly employing more than 350 persons, and investing millions. They are now requesting an urgent meeting with the PM, writing, quote, "We believe that it is a precipitous act, performed without careful consideration of the negative impact that it would have for the established companies..." End quote.

And while they say they're being boxed out of the industry, the National Gas Company issued its first release today, saying, they've got it all wrong. A release says, quote, "LPG Sales by NGC will be limited to bulk sales through the Big Creek Terminal and the two regional depots in Orange Walk and Belmopan. For clarity, NGC will not be involved in the distribution and retail sales of LPG. NGC will issue a tender for supply to the terminal in Big Creek. There are many traders in the region interested in supplying the terminal including the three current importers in Belize; Gas Tomza Limited, Belize Western Energy Limited (Tropigas), and Southern Choice Butane Limited (Zeta Gas Belize) who have their own ships and will be encouraged to bid for the bulk supply to the terminal."

The release adds, quote, "The distribution and retail sector supply chain in Belize will not be interrupted and will be able to continue functioning as is. The main difference is that the LPG will be brought into the country by ship as opposed to a daily flow of international trucks crossing the Benque/Melchor border. The investments made in the retail distribution infrastructure by the current players will still be relevant and continue to play a significant role in the efficient distribution of LPG to end consumers."

So, what will change? The release says, quote, "the supply of LPG to consumers in Belize will be more secure and regulation of prices and quality will be significantly enhanced."

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