Natural gas’ pluses fizzle in just 12 months, users turn skeptic

Santo Domingo.- Natural gas’ pluses as cheaper and easy financing for the equipment have evaporated just during the last 12 months, as uncertainty begins to take its toll on many users including industries.

The jumps however don’t affect electricity generation, whose earnings easily surpass US$200 million per year.

Industry and Commerce Ministry figures show natural gas’ price starting October 2009 at RD$18.09 per cubic meter, to RD$29 this week, a RD$10.91 jump, or 60.31%. Despite not being a petroleum derivative it’s is the fuel which has risen the most in the last two years.

A gallon of propane gas, derived from oil, equals 2.36 cubic meters of natural gas. This means that when the cubic meter of natural gas cost RD$18.09, equal to RD$42.69 if converted to the cost of a gallon of propane.

Though many motorists were “hooked” into paying to convert to natural gas on its relatively cheap price, the attitude has become skeptical, especially on the fact that AES Dominicana is the only major supplier for the local market.