Costa Rica resolves Zeta Gas LPG distribution woes

OREANDA-NEWS. May 15, 2015. The Costa Rican government has extended hours that the Costa Rican oil refinery (Recope) can sell LPG, and a separate agreement will allow retailer Grupo Zeta Gas to purchase and distribute propane.

Zeta Gas' distribution rights in Costa Rica fell apart earlier this year when a married couple that previously jointly owned the retailer was ordered by a Texas judicial seat to split assets, including the propane distribution company.

Prior to the tribunal resolution, Recope was unable to sell gas to only one of the parties, either Evangelina Lopez Guzman or Miguel Zaragoza, leading the couple's Zeta Gas plant to operate at a 50pc rate, according to a press release distributed by Lopez Guzman.

Minae normalized the sale of gas and temporarily extended hours of operation in order to cover shorts caused by the conflict. The court order authorized both of the conflicting parties within Zeta Gas to buy and distribute LPG throughout the country.

A third unnamed operating company was granted an endorsement by Minae to buy and distribute gas as well.

"Recope has sufficient gas reserves to supply the concessionaires that distribute and supply the entire Costa Rican market," Costa Rica's Environmental and Energy Ministry (Minae) said.

Recope hours were extended to help stabilize the distribution of gas. Beginning 5 May, the site in Moin, where a waterborne LPG import terminal is housed, extended its opening hours to include Sundays.

Spot LPG shipments from the US Gulf coast into Costa Rica began to tick up with increasingly regularity in mid-March. Since an 18-19 March discharge in Moin, at least 25,000t of LPG were transported to Costa Rica via the coasters PGC Darko King, Epic Bolivar and Kendal.