Liquefied Petroleum Gas (LPG)

After Law 1151 of 2008 was issued, the provision of liquefied petroleum gas (LPG) to households will be significantly altered from the perspective of the end user, who will enjoy a better service and will be able to fully identify the service provider

Said Law introduced a brand liability framework for distributor-owned cylinders that will permit the identification of LPG public utility service providers and make them liable for the quality and safety of the distributed fuel 

In this manner the National government, through the Commission for the Regulation of Energy and Gas (CREG) and the Ministry of Mines and Energy, has initiated a so-called "transition period" in effect until 2010, which seeks to accomplish the following:

  • Fighting against LPG service informality.
  • Guarantee the continuous provision of service, under safety and quality standards for all users, industry representatives and the general community.
  • The introduction of a brand liability framework for distributor-owned cylinders
  • Clear and efficient control over service providers, under the new cylinder branding framework.
  • Definition of responsibilities and obligations for agents involved in providing public utility services.
  • Household LPG retail marketing for end users.

In compliance with legal provisions, the Commission for the Regulation of Energy and Gas (CREG) issued Resolution 045 of 2008, which established regulations applicable during the Transition Period from a universal cylinder framework to a distributor-owned cylinder brand liability framework, in the context of providing the LPG public utility service.

At the same time, in accordance with the provisions of the previous Resolution, the Ministry of Mines and Energy issued Resolution 18 1464 of 2008, modifying Resolution 18 0196 of 2006, and established requirements for Branding and Reviewing Cylinders.

Liquefied petroleum gas (LPG), better known as propane gas and more commonly described as cylinder gas or pipette gas, is a light hydrocarbon mixture (organic compounds composed entirely of carbon and hydrogen) consisting of butane and propane

These components will remain in a gaseous state under environmental conditions and in a liquid state when they are stored or packed under low pressures, making them liquefiable.

LPG has important petrochemical and fuel uses. As fuel, it is used in industrial processes (steam production, heating and cooling systems, motor fuel) and in commercial or household processes (cooking, water heating and heating, among others).

Formalization

Campaign for the Formalization of LPG cylinder retailers

According to the definition included in CREG Resolution 074 of 1996, a LPG cylinder retailer is an establishment belonging to a distributor intended for the direct sale to end users of portable LPG cylinders with a maximum capacity of 40 pounds (that is, only for cylinders of 20, 30 and 40 pounds), in rural or urban areas of difficult access.

Sales operations are regulated by the Ministry of Mines and Energy through Resolution 80505 of 1997, which describes the technical and safety standards that must be met.

However, local authorities have expressed their concerns regarding the proliferation of such establishments without the approval of a legally established distributor and without complying with the minimum safety standards.

The Ministry of Mines and Energy has been implementing a program to verify that sales of LPG cylinders are being carried out under the current legal regulations. The entities involving with this program include the Superintendence of Public Utility Services; local, district and municipal mayors as well as community action councils.

LPG Prohibition

Restrictions to the use of liquefied petroleum as motor fuel

The use LPG as motor fuel is prohibited. Therefore, authorizations for converting vehicles to LPG usage will only be granted, under exceptional circumstances, to LPG distribution companies and exclusively for the internal operating consumption of vehicles solely employed for gas distribution, in accordance with Law No. 689 of August 23rd of 2001.

Converting vehicles for LPG usage is not just illegal but also creates a serious safety risk for vehicle owners and the general population.

The Ministry of Mines and Energy and the Superintendence of Public Utility Services are taking joint action in order to carry out the necessary legal procedures against those public utility service providers that may be in violation of current norms. Cylinder Replacement

Circulars

Certification Circular

Circular addressed to manufacturers of steel cylinders used for the domestic provision of Liquefied Petroleum Gas, Useful information for manufacturers of steel cylinders used for the domestic provision of liquefied petroleum gas (LPG) concerning the cylinder certification process and the Technical Regulations issued by the Ministry through Resolution 18 1788.

Circular Sales

Circular addressed to Mayors, Local Administrative Councils, Community Action Councils and Local Emergency Committees,Useful information for Mayors, Local Administrative Councils, Community Action Councils and Local Emergency Committees on the existence and operation of Liquefied Petroleum Gas (LPG) retailers.

Circular 18 037

Publication Of Circular 18 037 Of 2008, For information on Wholesale distributors of propane gas.

 

Historical Information

LPG Price Structure 

Wholesale deliveries of GLP in 2001, 2002 and 2003

Wholesale sales to Manufacturers 2001, 2002 and 2003

 

Network Coverage

Liquefied Petroleum Gas Network Coverage
This information is collected by companies who provide LPG services through the use of networks and has been consolidated by the Gas Directorate of the Ministry of Mines and Energy on a quarterly basis

Coverage of September 2010

Coverage of June 2010

Coverage of March 2010

Coverage of December 2009