Nacion.com reports: "The initiative was presented by five members of the Citizen Action Party (PAC by its initials in Spanish), with the intention of safeguarding the hydrocarbon, taking into account a legal loophole which could leave it outside of state control. If the law reform comes to fruition it would create a monopoly on liquefied natural gas, just as with other fuels. "

According to the current Law 7,356, the state monopoly includes the "importation, refining and wholesale distribution of crude oil and its derivatives, which include fuel, asphalt and naphthas", omitting to specify liquefied natural gas. The amendment would add to the text "the import, processing and wholesale distribution of liquefied natural gas."

"In order to clarify the issue, since it is in vogue and seems to have a regulatory framework, the best thing is to do it this way," said Rep. Jeannette Ruiz.

Meanwhile, René Castro, Minister of Environment and Energy says the issue should be discussed widely, since it has barely been analyzed in the country. He added that for at least in the next five years, the refinery will not have the infrastructure needed to deliver natural gas.

Source: Nacion.com

More on this topic

Costa Rica: Natural Gas Imports by Private Firms

July 2013

The industrial sector is willing to import the LNG needed without state intermediaries in order to reduce production costs.

"On 11 June, the Administrative Court accepted a law which is forcing the Ministry of Environment and Energy (Minae) to decide, within fifteen working days, on the possibility of the private sector importing liquefied natural gas (LNG)," reported Elfinancierocr.com.

Conversion to Gas in Costa Rica

November 2012

The Costa Rican government has declared the importation and distribution of natural gas to be of public interest, and is promoting the conversion of power plants, the automotive fleet and industry.

While it is not yet clear whether the state-owned monopoly RECOPE (Refinadora Costarricense de Petróleo) will manage trade in natural gas, the government of Costa Rica announced that within six months it will be importing liquefied natural gas.

Natural Gas is not a Derivative of Petroleum

October 2012

Will the fuel be included in the state fuel monopoly run by the Costa Rican Oil Refinery?

While all around the world the importance of natural gas as an energy source is growing, the Costa Rica state agency Costa Rican Oil Refinery (RECOPE), which holds a monopoly on crude oil and its derivatives, is preparing its infrastructure for the self-imposed role of sole importer and wholesale distributor of the fuel.

Natural Gas as Energy Source for Costa Rica

April 2012

The two energy-related state enterprises are looking at replacing bunker fuel and diesel power generation plants and power used in public transport and freight, with natural gas.

The state run Costa Rican Oil Refinery (Recope) and the Costa Rican Electricity Institute (ICE), are awaiting the results of a study contracted with a Canadian company that will define the economic and technical feasibility of using natural gas as a substitute for diesel or bunker fuel.