EASTERN Petroleum Corp. may spend as much as P5 billion to capture a 5-percent market share in the liquefied petroleum gas (LPG) industry.
“The Philippines consumes 100 million kilograms of LPG per month. Ideally, you need to hold at least 5 million kg. We want to capture 5 percent in the next three years,” said Fernando L. Martinez, Eastern Petroleum chairman and chief executive.
Eastern Petroleum’s EC Gas cylinders are explosion-proof even when in direct exposure to fire, 70-percent lighter than steel tanks and translucent, making its content visible to its users. It is designed based on the latest composite cylinder technology that uses seamless polymer, fiberglass construction and molded high-density polyethylene (HDPE) casing, which comes with special regulators that are built for efficiency and safety.
Martinez said there are 140 EC Gas outlets nationwide. The company will add 50 more this year.
“We would like to concentrate in Metro Manila, Southern Luzon and Central Luzon because these areas constitute half of the total consumption of the LPG industry. We hardly touch the surface. We are below 1 percent in market share. If we hit 1 percent this year, we will be very happy,” he added.
Eastern Petroleum announced on Thursday its partnership with the Bureau of Fire Protection (BFP) in ensuring Filipino households are safe from LPG-related fires.
Through its EC Gas LPG business unit, Eastern Petroleum affirmed its commitment and support to the BFP’s target to reduce fire incidences in the country, particularly LPG-related fire incidences that have resulted in families being displaced and even causing death.
Data from the BFP showed that fire incidents in the National Capital Region (NCR) dropped by 9.3 percent to 4,645 incidents in 2017 from 5,121 incidents in 2016. The BFP added that only 0.58 percent or 27 incidents in NCR were attributed to LPG explosion due to direct flame contact or static electricity.
On a national scale, the BFP data showed that fire incidents declined by 26.41 percent to 14,197 in 2017 from 19,292 in 2016. It added that 0.83 percent of the fire incidents were caused by LPG.
In a dialogue with BFP representatives, EC Gas agreed to help the bureau in its information, education and communication (IEC) campaign by cascading fire-prevention materials to EC Gas users through its retail network across the country.
“Despite the decrease in fire incidents attributed to LPG, there is still room to further reduce these incidents. And this partnership with BFP comes timely as the nation observes Fire Prevention Month,” Martinez said.
He said the partnership between Eastern Petroleum and BFP would empower its EC Gas retail network and users with relevant safety tips and techniques on how to prevent fire from occurring.
He added the partnership goes beyond Fire Prevention Month, as a pact would be finalized in the near term.
At present, Martinez said there are 9 million composite cylinders being used by LPG producers and distributors around the globe. Eastern Petroleum takes pride in being the first Philippine oil company to pioneer in introducing the use of composite cylinders in the country.
“Consumer awareness of the perils of using conventional steel LPG cylinders that are prone to explosion due to tank pilferage continues to grow. Hence, there is a need to provide them with the best alternative that promises them the peace of mind they need, as their homes are safer because their kitchens are equipped with Eastern Petroleum’s EC Gas LPG systems,” Martinez said.