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Liquid petroleum gas (LPG) has the potential to be a leading energy source for Bermuda, and is purchased by many of the island’s visiting superyachts for operations on board.
RUBiS has supplied LPG to Bermuda Gas since 1957, helping BGU to hold its title as the island’s leading retailer, selling 5,000-tonnes of cylinders and bulk distribution per year.
Speaking to the Royal Gazette recently, Graham Redford, managing director of RUBiS Energy Bermuda explained that the deal arose when RUBiS became aware that BGU was looking to take control of its own supply chain, importing LPG in ISO tanks from overseas. No jobs will be lost as a result of the takeover, and all existing agreements and equipment warranties will be honoured.
Graham said to the Royal Gazette, “The Bermuda Gas acquisition represents a strategic expansion of RUBIS’s existing LPG business in Bermuda.
“RUBiS is currently the island’s leading importer of LPG and the integration of the supply and distribution chain will allow us to expand infrastructure capabilities to better serve our customers.”
He continued, “Bermuda Gas was likely aware that we would have been forced to enter the distribution market, so it made sense for us to approach them and try and negotiate the purchase of BGU.
“The acquisition represents a strong add-on to RUBiS’s existing position in this sector. We are able to look at the whole business. Before we were only suppliers, now we can look at economies of scale.”
Graham believes that, with LPG being a by-product of natural gas and crude oil refining, it offers a preferred energy source for the island over liquid natural gas alternatives. He shared that it is sourced from conflict-free countries, as well as offering greater energy efficiencies and emitting fewer greenhouse gases than many other fuels.
He explained, “LPG is a good, safe, secure fuel source for Bermuda. The infrastructure is built. It’s clean, it’s the best alternative, but it’s not been explored in Bermuda. I will spend time to look at any alternatives.”
However, LPG is only one segment of the company’s operations in Bermuda. Diesel, gasoline and white oils are also imported and distributed by the French company, which bought Shell’s Bermuda operations in 2006. The assets included fuel storage tanks at Ferry Reach and Dockyard that can hold a total of 184,000 barrels of fuel.
This year RUBiS will celebrate its 10th anniversary in Bermuda with a charity promotion that will benefit 24 organisations and groups.
For more information, visit RUBiS Energy Bermuda.
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