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MANILA – Eastern Petroleum Corp is unveiling a light-weight and explosion-proof liquefied petroleum gas (LPG) tank by September.

In a media briefing yesterday, Eastern Petroleum chairmn Fernando L. Martinez said the company plans to distribute a million of the new-generation LPG cylinders.

The new product will allow the company to corner 10 percent of the LPG market in Luzon, he said.

Eastern Petroleum’s LPG household tank — branded as EC (Eastern Composite) Gas — is made out of plastic composite, making it lighter at only five kilograms (excluding the content) compared with conventional cylinders that weigh over 13 kilograms.

The EC Gas tank’s technology allows LPG to seep out during a fire, preventing explosions. It also has a custom built regulator that stops the commodity from escaping in case of hose leaks.

The EC Gas tank also has a transparent portion where consumers may actually see the contents of the cylinder.

“You automatically save because it is transparent because when you return your [steel tanks] for refill it actually has 10-25 percent content remaining,” Martinez said.

The tanks are manufactured by Ragasco AS of Norway and exclusively distributed by Eastern Petroleum in the country.

Martinez said the company will spend P3 billion to roll out the EC Gas tanks and put up refilling facilities. The company will finance the rollout through a combination of internally-generated funds and bank loans.

The product will be distributed by 200 dealers across Metro Manila and the Calabarzon area, and would also be available in Eastern Petroleum pump outlets starting September. 

By the first quarter of next year, the company plans to distribute the new LPG tanks in the Visayas and Mindanao, Martinez said.

“Eastern Petroleum is now becoming [both] a petroleum and gas company with its acquisitions. Our game plan is this will be bigger than our petroleum business in three to four years,” he said.

Filipino-owned Eastern Petroleum operates around 50 fuel stations mostly in Luzon. Last year, the company’s revenues hit P3 billion, down from P3.5 billion in 2011 primarily due to oil price fluctuations.

 

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