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Tuesday 22 January 2008

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Aresep Decision Could Leave Country With Natural Gas Shortage
A possible shortage of the supply of natural gas has the Autoridad Reguladora de los Servicios Públicos (Aresep) backed into a corner, according to the daily La Nación, which will seriously affect 30% of the households which use natural gas to cook, as well as restaurants and public hospitals.

Last December 21, the Aresep, decided to rescind the concessions to natural gas suppliers, Gas Nacional Zeta and Tropigás.

The loss of concession that is to take effect on March 12, 2008, prohibits Zeta and Tropigás to sell and store natural gas.

The two related companies represent 85% of all natural gas sold in the market, according to the Ministerio del Ambiente y Energía (MINAE) - Environment and Energy ministry.

The Aresep sanctioned Zeta and Tropigás because both companies did not comply with concession contracts issued by the MINAE.

The regulator determined that the companies withheld some 9.000 gas tanks of its competitor, Petrogás, which filed the complaint with the Aresep, which decided to give Zeta and Tropigás three months to sell of its supply.

However, regulator Fernando Herrero, said "we do not want to make any sudden changes that will negatively affect users and the companies. If more time is needed, we will extend the time as necessary".

Herrero said that the conflict may be resolved with the intervention of the MINAE, which has asked for approval to reorganize the gas market so that the companies can comply.

Herrera is hopeful that the MINAE can negotiate with the companies to resolve the situation, recognizing that the competition between the suppliers is not even and that it will set out clear conditions with the exchange of the gas cylinders.

"It is up to them (MINAE) to define is there is a need for more or less operators", said Herrera.

Óscar Porras, director de Transporte y Comercialización de Hidrocarburos del Minae, said that no company has yet to request a new concession, adding that he cannot issue a concession to any company unless it requests one.

Porras is conscious that the Aresep decision affects 85% of the supply and that hotels, homes and hospitals will be left without gas.

For his part, MINAE minister, Roberto Dobles, confirmed that his ministry is working on new regulations to organize the natural gas market.

A Tropigás representative told the press that the company is working normally and is positive that the Aresep will resolve the appeals by Tropigás and Zeta and that they are continuing to receive gas from the Refinadora Costarricense de Petróleo (Recope).

The concern is that both Petrogás and Gas Tomza, the fourth gas supplier, cannot fill the void in the marketplace if Zeta and Tropigás are forced to shut down, as the companies will need time to make large financial investments in infrastructure and distribution.

Óscar Beltrán, representing Tomza, said that his company cannot invest millions without first knowing the decision of the Aresep, saying that once the Aresep decision is made, his company can develop a plan.

 
 

 

 

 

 
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