WAPA Ends Long, Costly VITOL Era With Board Approval of New Supplier Empire Gas

During Thursday's meeting of the Water & Power Authority's governing board, Chief Executive Officer Karl Knight announced that the team had found a new supplier of propane.

After the initial procurement process failed to identify a suitable candidate, the board approved direct negotiations. As a result of these new efforts, “we're presenting here today a recommendation that we go with a new fuel provider in the form of Empire Gas Company,” said Mr. Knight.

The company is the largest propane supplier in Puerto Rico, Mr. Knight told board members, and the 10th largest in the nation. Empire Gas Company supplies industrial consumers as well as smaller outfits and individuals, he noted. “As far as retail LPG sales they currently occupy about 75% of the market share in Puerto Rico,” Mr. Knight said. He told board members that the company has been in the business of providing propane to Puerto Rico since 1967, and currently averages 120 million gallons in total annual sales.

Other territorial clients include the Diageo distillery on St. Croix, Mr. Knight noted. He requested that the board authorize a 2-year contract with the option for a further one year extension.

After the CEO's presentation, board chair Maurice Muia, elected at WAPA's last board meeting, requested that the matter be tabled “until some further information can be gathered for the board.” The request was turned into a motion, which was narrowly defeated with two votes in favor and three against.