Eastern Petroleum eyes 700 outlets for LPG brand

MANILA, Philippines - Eastern Petroleum is eyeing to open 700 retail outlets next year for its liquefied petroleum gas (LPG) brand, EC Gas, which it launched just a year ago, its top official said in a briefing.

The company is setting aside P350 million for the additional cylinders and refilling stations nationwide.

“We are targeting to open 700 by end-2015,” said Eastern Petroleum president Fernando Martinez in a briefing on the occasion of the product’s first anniversary.

He said by 2018, the company is confident it can open 5,000 outlets given the positive reception of the consumer market in the brand.

Over 100 outlets have already opened and operating in various areas around the country including Tuguegarao, Cagayan in Northern Luzon, Gen. Santos City, Cebu, Bacolod and Iloilo City.

Martinez said 250 more franchise applicants are on process which could bring EC Gas outlets to 350 by yearend.

Against this backdrop, the company is also targeting to increase the number of its refilling plants to five next year, from three this year.

The oil company launched last year EC Gas, an explosion proof cylinder made from composite materials and is up to 10 kilograms lighter compared to the average weight of LPG made from steel. The product has ben awarded as the most innovative product at the Entrepreneur and Franchise Expo 2014, Martinez said.

The most important feature of the cylinder, supplied by Norway-based Hexagon Ragasco AS, is that it will not explode even if set on fire. Ragasco is a leading producer of composite pressure containers.

“People are now positive with the benefits of safety and savings as proven by a number of positive testimonials from satisfied EC Gas LPG household and restaurant users. Some restaurant owners claim that they save up to 30 percent to 40 percent using EC Gas,” Martinez said.