The Norwegian company Hexagon Ragasco has secured an export agreement with the Uruguayan gas supplier Megal for the delivery of composite LPG cylinders for domestic use. Export Credit Norway has provided a loan, guaranteed by GIEK, for the contract, which is valued at more than USD 1 million.
In Uruguay, gas for the domestic market is commonly delivered in heavy steel bottles. Hexagon Ragasco’s composite product has several advantages over the steel containers. As it combines fibreglass and plastics capable of withstanding far higher pressures than steel, it is safer. Moreover, each container’s weight is a quarter of that of a steel bottle, making it easier to carry and transport. Finally, the composite containers are transparent, enabling consumers to see quickly when a cylinder is almost empty and needs to be refilled.
Megal will be the sole distributor of Hexagon’s containers in Uruguay. Since all Uruguayan gas distributors are required to sell gas at the same regulated price, Hexagon’s containers are expected to give Megal a substantial competitive advantage in a market currently dominated by four main actors.
Photo: Hexagon Ragasco