The country is not at risk of LPG shortages

The Dominican Oil Refinery (Refidomsa) guaranteed that the country is not at risk of shortages of Liquefied Petroleum Gas (LPG)and informed that he received the most recent shipment from the Geogas company as scheduled.

The state company highlighted, in a press document, that it maintains a commercial relationship with Geogas through which it last LPG supplyunder a contract since 2019.

The document indicates that the contract guarantees minimum monthly deliveries of LPG to Refidomsa, with Geogas being responsible for the environmental permits required the operations of its vessels.

Since 2021, Geogas notified a change in your logistics to supply Refidomsa from its storage tanks in San Pedro de Macorís.

The Dominican Oil Refinery (Refidomsa), has a share in the LPG market in the country of about 36% Therefore, in the current circumstances, a shortage that could harm the country is not possible, in view of the participation of other companies in the market and the infrastructure of existing supply.

Can read: Public finances do not support more general fuel subsidy

new tanks

Refidomsa started in 2019 the construction of new tanks to raise the storage capacity of LPG to 20,000 tons, since it is currently only 5,000.

This situation prevents the entry of large vessels that supply the product, but rather, small vessels that make the berthing cost and affect the final price.

To finance the work, Geogas signed a contract for US$ 61 million, of which advanced US$11 million; however, the current management of Refidomsa supposedly decided not to use the financing that was paid with savings estimated at US$20.00 per ton.

It transpired that Refidomsa, after refusing to certify the documents to Banreservas to complete the financing, requested a loan for the same amount and annulled that part of the Geo Gas contract, leaving the company indebted.

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