gas distribution and new implementation of electric stove.pptx

7/27/2019 GAS DISTRIBUTION AND NEW IMPLEMENTATION OF ELECTRIC STOVE.pptx

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GAS

DISTRIBUTIONANDIMPLEMENTATIO

N OF ELECTRICSTOVES



GAS DISTRIBUTION In the country, the situation of thehydrocarbon sector generates

concern, because it has a structureof production and refining ofderivatives that does not meet theneeds of the demand and thereforearises the need to cover this deficit

with imports.According to the statistics offoreign trade of the Central Bankof Ecuador, the import costs ofnaphtha, diesel and LPG had been

increased by 136% between theyears 2004 and 2006, reachingUS$1,952 million. The 2007 closedwith an import volume of 31.6million barrels, according toforecasts by Petroecuador; i.e. 21%more than in 2006.



The graphic shows how the distribution of domestic gas works, while here it is justproduced 620,08 tons of LPG, the rest 2,157,18 tons are imported, with a total of2777,26 tons of LPG.

For distributors a cylinder of 15kg costs $1,60 while in Peru this price is like 650%more> $19,68 and even higher in Colombia $25,87.

Principal traders of LPG market have a very adjusted percentage of participation witha difference of approximately 6 or 7 percent.



REFINERIES AND IMPORTERS

The private companies are not involved in the import of gasprimarily, because this is subsidized by the government andyou can't compete. Petroecuador is the importer of gas, themarketing of the product is performed by the private sector.The private traders have the legal authority to buy and

distribute. Three large private companies move the gas market to

domestic use (LPG) in Ecuador: Duragas, AgipEcuador andcongas. Their power is so big in the economic and politicalcontrol 90 percent of the market and 60 per cent of

packaging. The figures prove it: Duragas packaged the 36.6 percent;

AgipEcuador 32.4; and Congas on 22 percent. The restcorresponds to activity in the rest of enterprises(Autogas,Austrogas, Lojagas), including the state enterprise

Petrocomercial.



NUMBER OF

DISTRIBUTORS TRADER BOTTLING PLANT NUMBER OF VEHICLES

1395 AGIPECUADOR

AMBATO

1417

IBARRA

PIFO

132 AUSTROGAS CUENCA 108

830 CONGAS

QUEVEDO

590 SALCEDO

1298 DURAGAS

MONTECRISTI

913

SALITRAL

BELLAVISTA

STO. DOMINGO PIFO

457 ECOGAS ITULCACHI 212

568 GASGUAYAS SANTA ELENA 194

220 ESAIN ISIDRO AYORA 15

10 GALO ENRIQUE

PALACIOS ZURITA YAGUACHI 8

73 LOJAGAS CATAMAYO 95

123 MENDOGAS RIOBAMBA 65

1 PETROCOMERCIAL- BOTTLING

ESMERALDAS

8

PENINSULA

SALITRAL SHUSHUFINDI



CONSUMERS

• Last year were recorded sales of over USD 130 million,

according to the Central Bank of Ecuador. However, in

the review of the consumption levels warns that about

80% of LPG consumed in the country is imported. Only

20% of it is local production.

• Figures of EP Petroecuador and Asogas show that the

dispatch and LPG demand does not grow as 5 or 10 yearsago. In 2003, the annual growth of deliveries were 6.15 %.

But in 2011 the variation was lower: 2.88 %.



PARTIES AFFECTED BY THE

ELIMINATION OF THE SUBSIDY

• PRODUCERS

The elimination of gas subsidywould result in the reduction of the domestic demand of LPG

homes, this reduce the imports of this well and would become in acertain way to Ecuador in a morecompetitive country to the level of exporter of oil derivatives,according to the impact that this

has at the global level. The pricewould be the same as internationalprices, about $16, which wouldreduce the illegal sell and buy of gas in the borders of Ecuador.

• DISTRIBUTORS

The elimination to the benefit of

gas for domestic use would

represent a great impact on thegas distributors and the production

of the same cylinder, for as soon as

the purchase at the national level

drastically decrease, in the same

way for the stores sellingappliances would have beginning

to commercialize electric cookers

and leave aside the conventional

gas.



PARTIES AFFECTED BY THE

ELIMINATION OF THE SUBSIDY

• DOMESTIC CONSUMERS

Consumers of LPG in homes will haveto acquire electric cookers to be partof this new proposal, this does not

mean that it will no longer distributethe gas but if there is a drop indemand in the same, increasingdemand for electrical cookers thathave an average value of $500.

The government shall be responsiblefor distributing this type of cookers

among Ecuadorians and assume theinitial expenditure, however forcertain citizens the cost that wouldgenerate buy an electric cookerwould be excessive in the long-term.



RESULTS OF MISUSE OF LPG

Smuggling at

borders withColombia and

Peru

22% to the

poor58% upper-

middle income

Benefit for highincome people

Illicit handling



USE OF LPG

USE OF LPG

Smuggling Vehicles Industrial and

Commercial

Domestic

4%

95%

22%

5%11%

59%

USE OF LGP IN ECUADOR

USE OF LPG USE OF LPG



• The cylinder of 15 kilos has a cost of $1.60 while the real value is $ 12, which means a benefit

equivalent to 650% compared to its actual price. However, not all those who benefit from this

grant are needy sectors.

• The 8% of the gas subsidy is intended to the poorest 20% of the population, while 33% of the

grant is intended to the richest quintile of the population, according to a study of the SocialFront.



Explanation: The State pays USD$12.13 for each 15 kg gas cylinder whilethe bottling plant pays USD$0,50, couriers pay USD$1,02 for eachcylinder and the collection center pays USD$1,23 for each cylinder andfinally small distributors pay USD$1,51 for each cylinder. The final pricefor the consumers varies from USD$1,60 to $3.



A NEW TERMINAL: EL CHORRILLO

With the operation of this plant supply will be more agile and secure to thesouth area of the country, which has a demand of approximately 3,000 metrictons per day of the fuel, according to sources from Petroecuador which buildsthe plant.

Starting in the second half of this year, Ecuador will feature a modernterminal that will allow you to store and distribute 15,500 metric tons of liquefied petroleum gas (LPG), from the sector of Easter, in the north of Guayaquil, and that is part of the megaproject Monteverde-El Chorrillo.

The megaproject includes a dock and a storage terminal in Monteverde(province of Santa Elena), the gas pipeline (124 kilometers) and the storageand distribution plant in El Chorillo. This whole complex will allow you to have

a storage of 60,000 metric tons of LPG, which means a supply for 25 days. Once the plant of El Chorrillo is set in Guayaquil will be dismounted the

current plant located in Salitral, west of the city, and that has practically beenin the middle of a densely populated area.

The terminal El Chorrillo would consist of six areas that are: tanks, waterreservoirs, pumping of LPG, shipping, packaging of cylinders and parking lot

on tankers.



THE CHANGE: FROM GAS TO ELECTRIC

COOKER

• With the announcement of President Rafael Correa, with whichthe gas subsidy will be removed dueto the hydroelectric plantsfunctioning by the year 2016, thecountry should begin to prepare forthat the provision is taken as awhole.

• The cuisine of electric inductiondirectly heats the container using anelectromagnetic field rather than

through the radiant heat by the useof resistors. The use of this type of appliances would generate a highcost. To avoid affecting the popularsectors, there is a review of therates when the plan begins running.



The supply of electric cookers in Ecuador is limited and the pricesin the stores are not competitive with those of the cuisines thatuse fuel as the Liquefied Petroleum Gas (LPG). The

announcement made last Saturday by President Rafael Correa,removing the gas subsidy in 2016, has encouraged consumers tosee what kind of alternatives are available in the market.

For the elimination of the subsidy are two conditions to be met.The first, which come into operation the new eight hydroelectricpower plants (Coca-Codo Sinclair, Molder, Toachi Pilatón, amongothers). The second condition is that they carry out a nationalcampaign of replacing gas stoves for electric cookers of induction,for greater efficiency.



COOKWARE•

Cookware for an induction cooking surface will be generally the same as used onother stoves. Some cookware or packaging is marked with symbols to indicate

compatibility with induction, gas, or electric heat. Induction cooking surfaces work

well with any pans with a high ferrous metal content at the base. Cast iron pans

and any black metal or iron pans will work on an induction cooking surface.

Stainless steel pans will work on an induction cooking surface if the base of the

pan is a magnetic grade of stainless steel.



ELECTRIC COOKER COMSUMPTION

APPLIANCE ELECTRIC

POWER(WATTS) HOURS(DAY) ENERGY

WH(DAY) ENERGY

KWH(DAY) ENERGY

WH(MONTH) Cooker( two-burns) 1000 0,75(45 min) 750 0,75 22,5

Cooker(four-burns) 1800 0,75(45 min) 1350 1,35 40,5

ITEM POWER( WATTS) HOURS OF

USE(MONTH) KWH MONTHLY

AVERAGE

COMSUPTION ELECTRIC COOKER Current Disk Small 1000 W 20 hrs 20 kWh

Medium 1500 W 19 hrs 28 kWh

Big

1800 W 19 hrs 34 kWh Spiral Disk Small 1200 W 20 hrs 24 kWh

Medium 1800 W 19 hrs 34 kWh

Big 2200 W 20 hrs 44 kWh

Red Point Disk Small 1200 W 20 hrs 24 kWh

Medium 1800 W 19 hrs 34 kWh Big 2200 W 20 hrs 44 kWh



The average consumption of households with an electric induction stove would be

approximately $44, 64 with a cost of $0.08 Kw/hour with an electric power of 4500

watts or 4.5 kilowatts and a daily consumption of an hour and 30 minutes what brings a

result of 558 kwh in a month.

The 100% energy they receive (electric cookers), only 40% was used for the cooking of

food, while the remaining 60% is lost in the environment in the form of heat. In

contrast, the induction cookers have a yield of between 85% and 90% because they use

an electromagnetic field to heat food. This type of cuisines use special saucepans of

stainless steel, cast iron that cost twice of other materials such as aluminum. In stores

such as Home Vega or Home 2000 are exhibited the induction cookers but their prices

range from US$800 (four burners) to USD 1 500 (five burners).



COMPARISON IN PRICESCOMPARISON IN PRICES

GAS CYLINDER KW/H

PRICE $ 1,60

$

0,08

While a gas cylinder cots $1, 60 for

distributors and about $2, 50 to $3, 00 for

consumers, the price for the kilowatts per

hour is $0, 08 and with a consumption of

500 kilowatts, the price is USD$8,24, with

700 kw/h $9,10, 1000 kw/h $10,42, 1500

kw/h $12,31.



GAS STOVE

In cooking, a gas stove is a cooker/stove which uses naturalgas, propane, butane, liquefied petroleum gas or other flammable gas asa fuel source. Most modern stoves come in a unit with built-in extractor

hoods

The heat of a gas stove is not distributed evenly by the pot or saucepan.The flames are incremented upward to form a ring. Due to the fact thatthe flames are under a pot, the container should redistribute the heatthrough the pot to make the meal in its interior cooked enough. One of the

ways to compensate for the uneven heat source is by adjusting the gasflames to match the size of the pot and the type of a utensil used in thekitchen.

http://en.wikipedia.org/wiki/Cooking

http://en.wikipedia.org/wiki/Kitchen_stove

http://en.wikipedia.org/wiki/Natural_gas


http://en.wikipedia.org/wiki/Propane

http://en.wikipedia.org/wiki/Butane

http://en.wikipedia.org/wiki/Liquefied_petroleum_gas

http://en.wikipedia.org/wiki/Flammable

http://en.wikipedia.org/wiki/Gas

http://en.wikipedia.org/wiki/Fuel

http://en.wikipedia.org/wiki/Extractor_hood





http://en.wikipedia.org/wiki/Fuel

http://en.wikipedia.org/wiki/Gas

http://en.wikipedia.org/wiki/Flammable






http://en.wikipedia.org/wiki/Butane

http://en.wikipedia.org/wiki/Propane




http://en.wikipedia.org/wiki/Kitchen_stove

http://en.wikipedia.org/wiki/Cooking



COOKWARE

Basically with gas stoves you can use any type of cookware or utensils for cuisine but the most used are:

Copper Aluminum Anodized

StainlessSteel

Cast-Iron



PRICES IN THE MARKET

Cooker Brand Price Montecarlo Quarzo 32 inches, 5

burns Indurama $ 1.009,00

Cooker 30 inches six burns Mabe $ 915,00

Roma Quarzo 32 Inches, 6 burns

Croma Indurama $ 775,00

Cooker 30 inches six burns Mabe $ 578,55

Asis White Quarzo Indurama $ 357,60

CDE24KBX-8 Durex $ 310,00

Source: Comandato and Creditos Economicos



PRICES IN THE MARKET

While the cost of a cylinder of gas for distributors is USD$1,60,they sell the cylinders to final users with a price of $2,50 andan average consumption of gas of 2 cylinders per month for households, this represents an expenditure of $5 to $10dollars per month almost the triple in comparison with theconsumption with an electric stove.

COSTS FOR A HOUSEHOLD WITH GAS

STOVES COST OF A CYLINDER $ 2,50

CYLINDERS PER MONTH 2

TOTAL PER MONTH $ 5,00

The prices for gas stoves are very affordable for people for

example as you can see in the chart prices vary depending on

cookers’ brands and this represents savings for Ecuadorians

from electric stoves with prices up to $800 to $1500.



GAS STOVES VS. INDUCTION

ELECTRIC

Advantages

With the using of butane gassaves almost 40% of electricenergy over electric stoves

Does no produce CO2, it's aclean energy

Direct fire heats food faster

The fire is easy to controlwith obsevation

As food is heated faster, theconserve better texture andnutrients

Advantages

It's safer for children athome

Oven's heat can be wellcontrolled

It's easy to clean when it'svitroceramic

It's recommendable incooking food of low boil.

G A S

S T O V E S

I ND U C T I O

N E L E C T R I C



TYPES OF STOVES

G A S S T O V E S

•work throughfew burners

• the gascomes incontact with

the flame• support all

kinds ofkitchenware

C E R A M I C

H O B S

•work with anycontainer

• you can take

advantage ofthe residualheat thatleaves onceoff and areeasy to clean,

• Although they

are cheaper,they consumemore energy.

I N D U C T

I O N C O O

K I N G

•fast, secure,consume lessenergy and bevery clean

•. This type ofplates directlyheats the pan,

saucepan or casserole, whichshould be aferromagneticmaterial, avoidinglosses of energy

•They are moreexpensive than

the traditionalceramic hobs andyou can't cook with anycontainer .



PLAN FOR CHANGING STOVES

AND COOKWARE

About $ 2,300 million is estimated investment that regime will assume inthe process of replacing gas stoves to electrical induction between2015 and 2017, with the purpose of eliminating the subsidy to the LPG(liquefied petroleum gas).

According to Fernando Ceron, of the direction of Cost ReductionIndustry of the Ministry of Industries, "the project includes $1,300 million inthe change of 3 and a half million kitchens for 3 years, more theimprovement of the networks of the power grid, which areapproximately $ 1,000 million more".

"The government is going to issue a bond to the people who qualifywith the electrical consumption ,they are going to be exchanged in thechain stores and distribution, which is going to be paid to the industry,"he explained.

Espinosa said that the Executive plans to provide a bonus of $ 370 to $300 equivalent to the kitchen and $ 70 for the electrical installation andthe special utensils.



On the value of the subsidy that will deliver the regime, Gonzalezmade it clear that this is a proposal for a certain segment of thepopulation and will depend on the type of cuisine that will bemarketed. Appointments are anticipated with municipalities towhich the new buildings include a socket of 220 volts in the kitchens.

Induglob, manufacturer of the brands and Global Indurama,

currently develops a "conversion kit" that allows you to transform thegas cookers to the new induction technology that drives thenational government in the migration project of the energy matrix.With this technical initiative is replacing the dash of the burners of agas stove by the new induction system, powered with electricity.

The kit will transform the kitchen with combustion system to gas tothe new system, it is a new instrument of special burners with

induction technology that will be replaced by the current that aregas.

In the induction system, the cooking is done using magnetism and itsoperation depends on the use of electrical energy. These kitchenshave the capacity to heat faster than other systems with gas or electric; in addition, this system requires the use of utensils of castiron or stainless steel which depletes the entire heat by optimizing

energy waste.

PLAN FOR CHANGING STOVESAND COOKWARE



FINDINGS AND CONCLUSIONS

As a conclusion we can say that the abolition of thesubsidy from the gas in Ecuador will be a measure that willgenerate controversy to economic and social level.

While it is true, the elimination of the subsidy of the gas willcontribute with direct revenues for the financing of theGeneral Budget of the State, increasing the presence ofsocial projects, health, educations or homes, on the other hand, there are thousands of users of gas that would beaffected (Taxi Drivers, industries, etc.) due to the increasesin the cost of gas, this because it is quite true one of the

main uses of gas is the preparation of food, there arethousands of people who use this input as a generator ofenergy, in that way the increase in the cost of their maininput, will increase the finished product or service thatthey offer and the same could increase the cost of livingtoo.



On the other hand, it must be remembered that the origin ofthe gas is the oil , therefore you need a non-renewablesource to continue with the use of the input, for this reasonthe government has undertaken several hydropower projects that allow them to increase the supply of another

natural source as electricity, for this reason the aim is to takeadvantage of this hydroelectric productivity to reduce theecological effects that have been committed, and in turnuse energy friendly, free of pollution and over all cheap.

With the implementation of induction cooking, governmentwould save approximately $700 million dollars from gassubsidy but on the other hand would invest $2300 million inchanging gas stoves for electric and its cookware.

With this measure, there would be scads of low and middleincome people that could not afford electric stoves in thelong-term and this would affect directly householdseconomy.

FINDINGS AND CONCLUSIONS

gas distribution and new implementation of electric stove.pptx

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