Repsol YPF

Latin America

Repsol YPF is leader in LPG distribution in Argentina, Ecuador, Peru and Chile. This regional position, in addition to production sources in Argentina, Bolivia and Peru, gives a strong competitive advantage reinforcing vertical integration. 

In Argentina, Repsol YPF is the major producer of LPG in the country, with a market share of 25.4% (not including the Mega project). In the retail market, Repsol YPF Gas sells LPG in bottled form and in bulk to private, business and industrial clients, with a market share of 33.8%.

Up to May 2005 the market was not regulated, although since the year 2002, the vendors would come to Price Stability Agreements for butane with the government. Since that date, the new LPG law stipulates that the Ministry of Energy will fix wholesale prices for butane and propane on a quarterly basis and will recommend maximum prices of sale to the public for bottled gas for domestic use. Bottled LPG is marketed through 100% exclusive distributors which, in turn, resell the product to sale outlets.

In Chile, Lipigas, the company in which Repsol YPF holds 45%, and is the market leader with a 37.4% market share; its sales (100%) have reached 366,737 t.

In Perú, Repsol YPF takes part in the LPG market under the Solgas Repsol trademark, and is the market leader in terms of prestige and quality, with a market share of 30.3%. Repsol YPF also holds 30% of Lima Gas, although it does not operate the company, which has a 12% share of the Peruvian market.

The Chilean and Peruvian markets are also unregulated. The distribution of bottled LPG takes place through both exclusiv or non-exclusive distributors which, in turn, resell the product to sale outlets.

In Ecuador, Repsol YPF holds a share in Duragas, a company that is leader in LPG distribution and operates throughout the country with a market share of 38.4%. In 2005, Duragas sold 344,449 tons of LPG. The sale price of bottled LPG in Ecuador is strongly subsidised by the State; it is marketed through a network of exclusive distributors.

In Bolivia, Repsol YPF operates in the retail sector under the name Repsol YPF Gas Bolivia, the number one private company with a market share of 36.9%. Repsol YPF GLP Bolivia (registered in November 2002) sells LPG in the wholesale sector; this activity was previously carried out by Maxus Bolivia. In 2005, the retail sector sales reached 124,477 tons of LPG.