Introduction
The commercializers of Liquefied Petroleum Gas (LPG) in Colombia, Mexico, and Peru have announced a groundbreaking alliance in the regional energy sector. Agremgas, representing Colombia; Amexgas, the Mexican gremio; and the Sociedad Peruana de Gas Licuado (Splg) have formalized a pact to position LPG at the forefront of energy transition discussions in Latin America and expand its role beyond domestic use.
Alliance Details
The two-year agreement aims to create a cooperative space where the three countries will coordinate efforts to strengthen LPG commercialization in the region. Key areas of focus include technical standardization, regulation, digitalization of services, and distribution logistics. A significant aspect of the alliance is the development of a joint business platform to enhance their collective bargaining power, negotiate better terms with national authorities and multilateral organizations, and establish a unified voice on energy sector challenges.
LPG’s Importance in Latin America
More than 70% of urban households in Latin America rely on LPG for cooking, resulting in an annual demand of nearly 30 million tonnes—equivalent to around 300 million users. LPG’s applications extend beyond domestic use, gaining traction in industrial, commercial, maritime, and even automotive sectors. This versatility and lower environmental impact compared to other energy sources have solidified LPG’s position as a modern, secure, and competitive energy alternative.
Colombian Perspective
Agremgas emphasizes that the alliance offers an opportunity to expand access to cleaner and more reliable energy for households while reducing dependence on more polluting fuels. The international cooperation is expected to bring significant social benefits, ensuring more competitive prices, improved distribution infrastructure, and a more stable supply.
Mexican Perspective
Amexgas highlights that this step strengthens the sector’s position in the regional energy agenda. A joint strategy will accelerate market formalization, implement best practices, and create dialogue spaces with governments and multilateral organizations, allowing the three countries to act as a unified bloc.
Peruvian Perspective
Splg notes that the agreement addresses informality affecting some market segments and elevates quality and safety standards. The most relevant impact, according to the Peruvian gremio, will be on citizens, who will benefit from more efficient and transparent supply, directly improving their well-being.
Alliance Goals
Beyond safeguarding the LPG commercialization business in Latin America, the alliance aims to position LPG at the center of sustainable energy discussions. The shared vision is that technical cooperation and joint campaigns will demonstrate LPG’s crucial role in building a more diversified, competitive, and inclusive energy matrix.
Future Expectations
This alliance marks the first step for Colombia, Mexico, and Peru to become regional energy integration references centered around LPG. The expectation is that this initiative will expand to other countries, consolidating a Latin American network capable of influencing major energy transition and supply security debates while promoting tangible improvements in the daily lives of millions.
Key Questions and Answers
- What is the purpose of this alliance? The primary goal is to strengthen LPG commercialization in the region, focusing on technical standardization, regulation, digitalization of services, and distribution logistics.
- Why is LPG significant in Latin America? Over 70% of urban households rely on LPG for cooking, and its applications extend to industrial, commercial, maritime, and automotive sectors, making it a versatile and environmentally friendly energy alternative.
- What benefits does the alliance bring to each country?
- Colombia: Enhanced access to cleaner energy and reduced dependence on polluting fuels.
- Mexico: Strengthened position in the regional energy agenda through market formalization and best practices implementation.
- Peru: Addressing informality in some market segments and elevating quality and safety standards.
- What are the alliance’s long-term goals? To position LPG at the center of sustainable energy discussions and demonstrate its crucial role in building a diversified, competitive, and inclusive energy matrix.
- How will this alliance impact citizens? Citizens will benefit from more efficient and transparent LPG supply, directly improving their well-being.
