The Government of Chile has formed a technical work group, led by the Energy Ministry, in search of short, medium and long-term strategies to lower the price of liquefied gas. It has been announced that one of the first measures will be the implementation of a pilot plan in which ENAP (national oil and gas company) will commercialize liquefied gas through its subsidiary Gas de Chile.
The first phase of this measure contemplates the distribution of six thousand 15 kg cylinders to a group of vulnerable families chosen by the Energy Ministry in the San Fernando, Chiguayante and Quintero districts.
These families will be able to purchase each cylinder at $15,200 (the reference price for the week of July 21 to July 27, VAT included). This value represents a discount of around $10,000 or 40% compared to the normal value of a cylinder.
The sale price will be set weekly by ENAP based on the import parity price plus the costs associated with the packaging, sealing and certification process.
This pilot plan will allow ENAP to evaluate and enhance the positive aspects of the distribution model, and once the bill is presented by the Energy Ministry, review the necessary technical conditions for increased distribution as announced by President Gabriel Boric in his public statement, with a commitment to reach 100,000 families.
The official process of sales to the families belonging to the three beneficiary communes will begin in the next few weeks:
San Fernando (Friday, July 29)
Chiguayante (Monday, August 8)*
Quintero (Friday, August 12)*
*In the case of Chiguayante and Quintero, the Distribution and Storage Centers (CDA), where the logistical work for cylinder distribution can be carried out, must first be put into operation.
Questions and answers
- Who will the cylinders be distributed to?
- The beneficiaries belong to different social programs and form part of the 40% most vulnerable according to the Social Registry of Homes (family programs, home care program, adults over 80 years of age, others). They were chosen by the municipality, considering the criteria discussed with the Energy Ministry. We want the gas to reach those who need it most.
- How will the cylinders be distributed?
- Distribution will be carried out with small trucks leased by ENAP.
- How can the cylinders be filled once the gas runs out?
- Beneficiaries of the pilot plan will be able to ring a call center to place their orders; the maximum volume per beneficiary is two cylinders per month (to ensure availability for all beneficiaries and that there is no hoarding). The call center will be in operation from Friday, July 29, the same date that the sale of cylinders will begin in the San Fernando district.
- Once an order is placed, how long will the cylinders take to arrive?
- Delivery times will depend on the destination, traffic congestion and level of demand, which may vary at different times. For example, in San Fernando the response time is estimated to be between 60 minutes and 3 hours.
- How will the municipalities, together with ENAP, participate in the distribution process?
- The municipalities do not participate in the distribution process; it is carried out for the pilot scheme by ENAP.
- When will the bill to allow ENAP to enter the liquefied petroleum gas market be submitted to Congress?
- We know how important gas is for Chilean families and we know how the cost of living has increased. That is why we created Chile Apoya (Chile Supports) and why we are promoting this initiative. We will not stop there. The Energy Ministry will begin the pre-legislative work on the bill in the first week of August and the project will be submitted as soon as possible.
- To what other districts will this plan be extended?
- The government has already requested ENAP's board of directors to analyze and implement a business plan for the sale of Liquefied Petroleum Gas so that the company can expand its participation in this market and reach more communities.
- How will President Boric's commitment to reach 100,000 beneficiary families be fulfilled?
- As a Government we are committed to reaching 100,000 families, because it is important to make people’s lives easier in a winter that has been more difficult than normal. For this reason, we are concerned about the shortage of cylinders, and that is why we have asked ENAP's board of directors to implement a business plan around the sale of Liquefied Petroleum Gas. This will enable the company to expand its participation in this market, replicating the model that we have presented today.