Pascal Resources Energy Inc.: Gaz Lite
Pascal Resources Energy Incorporated (PREI) offers Gaz Lite – an innovative LPG canister accompanied by a single burner table top cook stove housed in a sturdy briefcase-type container. Designed for mobility and ease-of-use, the compact product found a following among the marginalized sector due in part to its affordability. The smaller fuel serving, allows cash-strapped households to purchase canisters as they need them.
The project's main objective is the conversion of solid fuel (wood, charcoal, biomass) users onto LPG, a modern fuel. Majority of these users belong to the marginalized sector and are located in rural areas. In order to reach these last mile consumers, PREI needs to increase its distribution network to cater to the community stores that will carry its clean alternative. Additionally, the company needs to find a stable, cost-efficient source of supply in order to ensure that the price of LPG will remain affordable and attainable for its intended users.
To date, 80,000 Gaz Lite systems have been distributed. PREI further strengthened its distribution channels by activating 1,000 community stores as canister retailers. The company also partnered with a number of private and public entities, majority of whom are micro-financing institutions to facilitate consumer loans for the procurement of the stove and canisters.
What problem are you trying to solve? Who has this problem?
Only about 40% of Filipino households use LPG for cooking. The other 60% predominantly burn firewood or charcoal to cook daily. Most of these families belong to the marginalized sector and live in rural areas. The price of standard LPG tanks (2.7 kG - 11 kG) is too steep for these daily wage earners. Add that to the initial investment of a traditional LPG cooking system and it proves overwhelming for majority of the population and serves as a barrier to adoption. Moreover, logistics costs (distribution/transportation) of tanks to rural communities add significantly to the retail price making cooking with cleaner LPG prohibitive in many areas. Thus, many households resort to solid fuels for cooking.
The direct burning of wood and charcoal produce harmful effects to both an individual’s health and the surrounding environment. There is a need and an opportunity to provide clean and affordable cooking systems to this significant but unserved market.
Pascal Resources Energy Incorporated is looking to serve the unserved market (60% of the Philippine population) by making LPG affordable and available through its Gaz Lite technology and a scalable business model. The company is confident that the Philippines has another 1 million MT of unrealized demand that it can access.
Moving forward, with the appropriate resources, PREI aims to expand downstream to serve 1,000,000 families through 100,000 community stores (sari-sari stores) by 2020. The total Gaz Lite canister sales volume from 2018-2021 is projected to reach 40.5 million which will amount to a total margin of USD 26.09 million.
In order to realize the full value chain, PREI plans to obtain a VLGC (Very Large Gas Cargo) floating vessel of 44,000 MT to be used as a storage facility. Thus, it can ensure product security and affordability for its intended market. The objective is for the storage facility to be online by 2019 and is projected to generate an additional revenue stream of USD 264 million.
Provides modern energy access to 1,000,000 households.
Improves the health conditions of 4,500,000 people.
Out of the total number of beneficiaries of the project, 1,000,000 are women.
Nelson Par, Chairman and Chief Executive Officer
Siu Ping Par, President
Elmer Binuya, Vice President - Operations
Joan Cruz, Vice President - Finance
Nathaniel Camat, Vice President - Corporate Strategy and Business Development
Matthew Par, Head, Marketing and Branding
Reynaldo David, Sales Manager
Willy Alaga, Head, Corporate Accounting