Colombia's LPG sales dropped sharply in April in response to a collapse in demand from industrial and commercial customers, overtaking residential demand that fell only slightly during the country's strictest lockdown period.
LPG sales fell by 5.8pc year on year to 47,942 tons in April, and by 10.9pc over the monthly average 53,810t sold in the first quarter, according to LPG chamber Gasnova. The group estimates May demand at 48,661t. Monthly sales in 2019 averaged 52,265t.
"During the pandemic, LPG consumption in the residential sector was not affected, as bottled LPG sales fell by just 2pc annually. The difference was in bulk demand for the industrial and commercial sector, which fell 15.6pc," said Gasnova president Alejandro Martínez Villegas.
Colombia's government has renewed lockdown restrictions five times since they were first imposed on 24 March. The rules have been gradually eased, allowing more than 45 industrial and commercial sectors to resume activities with strict protocols.
The next deadline of 1 July is expected to result in a further loosening of restrictions, although nearly all international flights remain grounded, probably until September.
With most Colombians ordered to remain at home, LPG producers, distributors and retailers were excluded from the lockdown from the start. But residents in some municipalities, fearing contagion, blocked the entry of LPG tanker trucks, preventing canisters from reaching final consumers. The blockades have since been lifted, Martinez noted.
In Colombia, about a quarter of the population of 50mn uses propane canisters for cooking.
Colombia is normally a net LPG importer, but the downturn has left state-controlled Ecopetrol with a surplus to supply the market.
The company boosted supply with the launch of a $125mn fractionation plant at its Cupiagua field in September 2019.
Ecopetrol supplied 94pc of the country's total needs in January-May. The balance came from other producers.
Ecopetrol's Cusiana and Cupiagua fields as well as its refineries supplied 52,988t in May, up from 49,340t in April. Colombia is unlikely to need LPG imports for the rest of 2020, Gasnova noted.
Ecopetrol will carry out maintenance on its 15,000 t/month Cusiana plant in July. Ample inventory will cover the market during this period, Martinez noted.
Imports are usually carried out by the G5 consortium of distributors: Almagas, Chilco, Inversiones del Nordeste, Montagas and Vidagas.
