LPG MARKET

19 producers

37 bottlers (120 plants)

15+ bulk providers

2.000 Retailers - 50.000 Shops

4.5 MM homes consumes LPG

Domestic Consuption : 1.000.000 Ton/yr

21.000.000 bottles & cilinders

120.000 bulk tanks

Source: CEGLA & private data

 PRODUCTION EVOLUTION

Source: private data

 PRODUCERS
2006

In 2006 Apache produced:

-40.000 Tn in Nqn
- 40.000 Tn in TdF
- 2,5% Total Argentine
Production

Source: private data

 DEMAND COMPONENTS

2006

Source: private data

 FLUJOSLPG
DE GLP - ARGENTINA
FLUXES

2006
25.000 Tn

940.000 Tn
90.000 Tn Chile
735.000 Tn
500.000 Tn Paraguay

A
Brasil
AE
325.000 Tn Otros (S/datos)
400.000 Tn

150.000 Tn

F
150.000 Tn TD
150.000 Tn

Source: private data

 LPG PRICES (Main Volumes)
LPG AVERAGE PRICES – LOCAL & EXPORTATION

MB= 800 U$/Tn

Export: MB – 40/150 U$Tn

Local: 650 $/Tn Butane
900 $/Tn Propane

Export: MB – 40 U$Tn Export: MB – 50/150 U$Tn

Local: 600 $/Tn Butane Local: 630 $/Tn Butane
850 $/Tn Propane 880 $/Tn Propane

Export: MB – 35/100 U$Tn

Local: 950 $/Tn Propane
(Propane Net Agreement)

Source: private data

 MARKET STRUCTURE

Retailer

Exports
Propane nets
50% Domestic &
3%
Commercial

Production Bottling Plants

Input Industrial
- Natural 25%

gas
-Crude Fillers
Agro
Oil 22%

Bulk
Petrochemical
¿Automotive LPG?
 FILLER / BULK MARKET

FRACCIONADOR
REPSOLYPF GAS
Total
302,173
(tn)
32.8%
2006
TOTALGAZ 162,032 17.6%
CAÑUELAS 92,010 10.0%
SHELL GAS 74,738 8.1%
AMARILLA GAS 60,481 6.6%
GRUPO GAS ARECO 44,793 4.9%
ITALGAS ROSARIO 29,001 3.1%
SURGAS 21,073 2.3%
DOLORES GAS 19,735 2.1%
OTROS (34) 114,998 12.5%

921,034

Source: CEGLA & private data

 SALES PER TIPE OF RECIPIENT

100m ton/ yr
320m ton/ yr
500m ton/yr

Propane
45 kg Propane
Bulk

Butane
10 kg

Source: CEGLA & private data

 MARKETING CHANNELS

TYPICAL Channel Distribution

STRUCTURE Big Reatilers
(DEX)
50%
Filling Plant
Middle
Retailers
LPG 20%
Bottled LPG

Shops
20%

Bottled LPG
10%
user

BULK (PROPANE)
100% Bulk user
 MARKETING CHANNELS

SOCIAL CILINDER
PRODUCER (10 Kg)

1600 $/TN
800 $/TN
FILLERS BIG RETAILERS
+ FREIGHT
+ FILLING COSTS
1500 $/TN
LPG PRICING
STRUCTURE RETAILERS
+ DIST. EXPENSES
1650 $/TN
EXCHANGE RATE:
3,10 $/US$ SHOPS
++ DIST. EXPENSES
1750 $/TN
BULK (PROPANE)
END USER
1500/2000 $/TN +++ DIST. EXPENSES
2200/2500 $/TN
 LPG PRICING COMPOSITION

(11%)
Envase de 10kg
@ U$ 7.5
(750 U$/Tn) (23%)

(TAXES)
(EBIT)
U$/Tn (33%)

(34%)

Precio Regulado

REFERENCE PRICE
(SEMI-REGULATED)
Source: private data
 BOTTLED LPG – LATAM SOUTHERN CONE
COMPARISION
Mt. Belvieu = 800 U$/Tn
ALL VALUES IN USD/TN
1.200
60

890 300
Total 800
100
Margen 120
fraccionador
460
Envasado y 360
distribución 840

Materia prima 320 330

Argentina Brasil Chile

Source: private data

 CHILEAN LPG SUPPLY
TOTAL ~ 1 MM t/year
I

II

ENAP III

320
IV PESA 21
PELSA 24
V
R
VI M

VII
|
Import Apache 35
Petrobras Import VIII

IX
Pluspetrol 33
(MEGA)
450
X

200 UTE TDF 62

200
Total 125
XI Repsol 150

XII

Thousand tons, 2006

 CHILEAN LPG MARKET
LPG Supply

Local Production Users

Fillers &
ENAP 45% • Residential users –
Retailers P-13 Direct sale (75%
Imports Bottled total market)
77% • Most 15kg cilinders
REPSOL
• 3 Filling companies
Apache
Pluspetrol
55% Bulk (industrial) • Industries
Total/Wint.
23%
Petrobras
 FILLERS

Abastible 34%
(COPEC)
380.000 TN

Lipigas 39%
(REPSOL) Gasco 27%
440.000 TN 305.000 TN
 CHILEAN SUMMARY

Imports 55% of its consuption

98% from Argentina
2% other origin

Unregulated market.

Reference Prices
Weekly Import parity :
CNE  Bottled MB +450
ENAP  Bulk (FOB producer) MB + 100
 SUPPLY

Import
Africa

PRODUCTION: 5.600 100

CONSUMPTION: 6.500

Imports MEGA 400

Argentina
TGS 190
YPF 150
800
Others 60

Thousands tons, 2006 values

 BRAZILIAN LPG MARKET

LPG Supply Consumers

Fillers Retailers P-13

Cilinders • Mas de 80 mil • Residential (83%

98% SOM)
revendedores
• Mostly P-13 Kg (70%
SOM)
• 17 Fillers Bobtail • Commercial /
Manguinhos
Industrial
(9% SOM)
2%
Industrial Bulk • Industry
(8% SOM)

• New importers?

The brazilian market consumed 6,5 MM ton in 2006, 98% supplied by

Petrobras, 18% of wich were imported.
 FILLERS

Otros
Copagaz 5%
7%

Ultragaz
Nacional 24%
Gas
19%
Liquigas SHV
(BR) 24%
21%
 BRAZILIAN SUMMARY

Production raising, stabilized consuption  imports decreasing

Main supplier Petrobras (98%)

Local market price:

Bulk (FOB Price) : Auto-regulated by Petrobras (330 U$/TN)
Bottled: Free
 LATIN AMERICAN BALANCE
2006

Source: Purvin & Gertz

 LATIN AMERICAN BALANCE
Argentina Brasil
- Production: 3.200 Mtn - Production: 5.600 Mtn
- Consumption: 1.400 Mtn - Consumption: 6.500 Mtn
- Balance: +1.800 Mtn - Balance: - 900 Mtn
E I
X
Venezuela Chile M
- Production: 5.050 Mtn - Production: 350 Mtn
P - Consumption: 2.900 Mtn - Consumption: 1.000 Mtn P
O - Balance: +2.150 Mtn - Balance: - 650 Mtn O
R R
Perú 2003
T
Perú 2010
- Production: 300 Mtn T
- Production: 1.100 Mtn Camisea
E - Consumption: 800 Mtn
- Consumption: 600 Mtn E
- Balance: -300 Mtn R
- Balance: +300 Mtn
R
S Ecuador S
¿¿¿Bolivia 2010 ??? - Production: 220 Mtn
- Production: 1.400 Mtn - Consumption: 950 Mtn
- Consumption: 400 Mtn - Balance: -730 Mtn
- Balance: +1.100 Mtn
 LATIN AMERICAN SITUATION

 From 2005: LatAm LPG net exporter

 Projects & new productions:
 Camisea: 400 mtn (2005) / 800 mtn (2010)
 GTPs in Venezuela: 800 mtn (2006/2010)
 LPG Extraction from NG in Bolivia: 1.000 mtn (2010??)
 Main exporters 2005/2010: Venezuela (2.150 mtn), Argentina
(1.700 mtn), Perú (300 mtn), Bolivia (1.000 mtn) ??
 Main importers 2005/2010: México (1.300 mtn), Brasil (1.100
mtn), Ecuador (730 mtn), Chile (500 mtn)
 Main destination for exports ex LatAm: Asia
 LATIN AMERICAN SITUATION
(2010) 5.050
810
720 2.900
90 2.150

Total Balances 220

exportables: 950 0
5.240 mTn -730 40
1.100 -40
Total
importaciones: 800
1.400
300 5.700
2.465 mTn 400
(3.765 mtn inc. 1.000 6.800
-1.100
México)
Balance Neto 0
120
LatAm 2010: 100
-120
2.775 mtn 125
550
(1.475 mtn) 1.000 -25
-450
3.500
1.800
1.700
Source: Purvin & Gertz