Quick Facts - National Gas Company (Belize) Ltd.

LPG Market Share

Subsidiaries of regional giants Grupo Tomza, Tropigas and Zeta control 57% of the wholesale and retail markets downstream of National Gas Company (Belize) Limited.

Competing Belizean companies hold 43% of the market with 26% of that market share held by small operators who are able to purchase from NGC’s terminal in Big Creek and two depots in Orange Walk and Belmopan at the same price NGC delivers to the depots of the larger operators countrywide.

LPG Prices

LPG prices that consumers pay in Belize consist of three main blocks:

(1) the landed cost of the LPG imported into Belize which includes the international acquisition costs, the transport and handling costs, the port throughput costs, and applicable government duties, taxes, and fees;

(2) the cost for NGC to receive, store, blend, distribute, and sell LPG at an import wholesale price that is the same price throughout the country whether delivered into the tanks of large operators or picked up at any of the three NGC locations;

(3) the wholesale and retail margin beyond the NGC import wholesale price that is regulated by the Controller of Supplies.

International LPG Prices Drive Local Prices

It is common and expected for International LPG prices to fluctuate due to seasonal demand and other market factors. Since the prices of LPG in the international market drive LPG prices in Belize, local prices similarly fluctuate up and down. This is nothing new.

LPG is Cheaper in Belize

The Guatemala Ministry of Energy published price of LPG is 480Q or $137.14 BZD for the 100 lb cylinder (exchange rate at the border is currently 3.50 Quetzal to 1 Belize Dollar).

https://mem.gob.gt/precios-petroleo-combustibles/

Tender Process

On an annual basis and to secure the best quality and pricing of LPG to the Belize market, the National Gas Company carries out a publicly advertised open bid process where Belizean and non-Belizean LPG entities are invited to participate. The successful bidder is selected on criteria established in the tender document.

LPG Industry Consultations

Prior to the administrative and legislative process that resulted in the enactment of the National Liquefied Petroleum Gas Project Act, there were several documented consultations with LPG stakeholders who at the time operated the LPG supply chain from importation to retail sales. Not only are these consultations a matter of public record, but they were undertaken over a period of many years from as early as 2014.

Price Buildup

The wholesale import LPG price that NGC offers to bulk clients countrywide is comprised of the following:

Acquisition cost from international markets.
Freight and handling costs to get the LPG from United States Gulf Coast to Belize.
Port Throughput costs including GST on port charges and Environmental Tax.
Financing cost for the establishment of state-of-the-art public infrastructure that includes a marine terminal and two strategically located depots in Belmopan and Orange Walk.
Regulatory fee provided to the GOB to assist in proper regulation in the LPG industry.
Operation and maintenance costs that meet World Bank IFC standards.
Transportation costs to deliver wholesale LPG at one levelized price throughout the country

National Liquefied Petroleum Act: http://nationalgas.bz/wp.../uploads/2021/07/Act12of2019.pdf

Infrastructure for Belize

In 2035 the Government and people of Belize will own public infrastructure that includes an LPG marine terminal at the Port of Big Creek and two distribution depots in Belmopan and Orange Walk, established through a public private partnership with an investment of over $60 million and for which the Government did not have to put up any financing.

http://nationalgas.bz/wp-content/uploads/2021/07/Act12of2019.pdf