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Sep 4, 2019

Will National Gas Create Another Monopoly Over LPG Market?

Since it was tabled in the House of Representatives and read through in its entirety on August sixteenth, the passage of the National Liquefied Petroleum Gas Project Bill has raised serious concerns. Skeptics, including the opposition and the Belize Business Bureau, believe that the new legislation paves the way for a monopoly company to control the importation, as well as prices of butane on the local market.  It’s a legitimate concern, in the face of a similar vice-like grip that the Mexican importers are said to have over the L.P.G. industry in Belize.  In our one-on-one with Doctor Gilbert Canton, Managing Director of National Gas Company Limited, we asked if the creation of such a commercial enterprise will also result in complete power over the local industry.

 

Dr. Gilbert Canton, Managing Director, NGLC

Dr. Gilbert Canton

“This is not really a monopoly because we’re not really controlling the whole supply chain.  The monopoly that pretty much exists right now where the three companies dominate the whole supply chain, they import, they wholesale and they retail.  So they dictate what goes on within that industry. We’re putting in a hub, so this hub is going to be set down and it’s an importation hub and what we’re going to do is we’re going to tender out from that hub for anybody who wants to supply.  We, in our research and our development and our feasibility study and business plan, know there’s quite a few players out there that are willing to come in; Carib LPG, Geo Gas, you have Parkland at Sol, you have Puma that’s interested in doing it from Trafigura, you know and also you have the companies that are pretty much importing right now.  You have Tomza passing with their ship going to Honduras, you have BWEL passing, well through their bigger company, their parent company passing going through Panama…  There’s all these opportunities, so these same people that are operating here can now also supply to the terminal and then what we would do, we would then have that supply based on a Mont Belvieu price, plus your cost to get it to the terminal.  So we will then put out that tender, who gives us that best CIF Big Creek price will get that supply.”


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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