Mass use to start in December, but no regulations as yet

SANTO DOMINGO.- The market for natural gas, the cheapest fuel in the world, will save the country US$1.0 billion in its balance of payments plus another US$300 million in electricity production, and when the market for this fuel develops the positive impact could even be greater.

Nevertheless, in spite of the fact that contracts with four firms have been signed to develop the natural gas (NG) market in the country, the regulations that will control the development and merchandizing of the fuel that are supposed to be drawn up by the Ministry of Industry and Commerce are not yet ready. The completion of the "cryogenic" gas plant that is supposed to be done by the end of the year and which will supply the natural gas is still pending.

The cryogenic gas is nothing more than natural gas in liquid form and the terminal that is being built at Punta Caucedo will permit the transport of the gas in this state to industry, hotels, and vehicle filling stations and bring huge savings of US$1.0 billion to the country.

Marco de la Rosa, the president of AES Dominicana, reported that the company signed several contracts with companies like Soluciones en Gas Natural of the Lama Group, GFS Dominicana, Tropigas Dominicana of the Marti Group, Propagas for the Linea Clave Group and a company from the United States that will come to the country. He said that the object was to extend the benefits of natural gas to other sectors. These companies, according to de la Rosa will be in charge of distributing the cryogenic NG in the country. The gas will be supplied by the plant at Caucedo that is scheduled to be ready by mid-December of this year.

"The idea is that they are going to begin to open the service stations that will provide natural gas for vehicles. Meanwhile, while everyone is waiting for the gas terminal to be finished, and the regulations that will accompany the development of this market to be drafted," according to de la Rosa.

It is expected by year's end, when the service stations begin to function, and already Linea Clave has one on the Las Americas Highway, and other companies have aggressive plans for expansion, that there will be dozens of stations that will change the nation's vehicles to natural gas.

In 2008, when the prices of oil hit US$80 a barrel, natural gas was at US$8, a 10:1 relation and it was still very competitive. Today the relation is 20:1, with the price at US$3.80/MBTU, he explained.

The Change

Each day natural gas is a more competitive fuel and one on which you can bet in the Dominican Republic. Marco de la Rosa says that because of the investments that have been made in the country, the benefits of having brought natural gas are very large, but what's seen in the future is the development of this market. He said that the investment of AES goes beyond the electricity sector. He said that they are going towards a radical change in the basic energy patterns from petroleum based energy to natural gas and coal.