The Voice of Riad Kadri, Chairman of Consigaz

The Voice spoke with Mr Riad Kadri, Chairman, Consigaz to hear his thoughts and goals about the future of the LPG industry.

The Voice: Welcome to the WLPGA, as a new member tell us a little about the company Consigaz and the key drivers for the coming years?

Riad Kadri: Consigaz is an LPG distributor in Brazil, that operates in both bottling and bulk segment. Consigaz has its operations across nine States in Brazil, and besides the LPG distribution, Consigaz also produces its cylinders and tanks. Consigaz has been growing consistently over the years, since the company is still expanding across other Brazilian States.

For the coming years, we expect to continue our sustainable growth that have been achieved over the previous years, and with this expansion, another key driver is to retain our talents, and prepare them for new challenges. One important factor of our consistent growth is that we value our team, and we prepare them to assume key roles in the organisation, transferring them knowledge and involving them directly in debates regarding the company´s results.

Lastly, Consigaz has broaden its strategic vision, and we are not only managing the company as an LPG distributor, but also a company that could provide any different type of energy. So, in this sense, Consigaz is always looking for different opportunities to diversify our product portfolio.

The Voice: Where do you believe the key opportunities lie for LPG in 2023 and going forward?

Riad Kadri: In our opinion, LPG plays a key role in the energy transition. LPG is an excellent option among other fuels, is an accessible product and has a great penetration, since it could be delivered anywhere.

Besides that, increasing LPG supply from other sources (bioLPG) and lifting existing restrictions (Brazil), in our opinion, could potentialise LPG demand.

The Voice: And for the Brazilian market in general; where do you believe are the key opportunities?

Riad Kadri:

In the Brazilian market, we still have some restrictions regarding the use of LPG. These restrictions were created in the 90´s due to lack of LPG supply to meet demand. The Brazilian market is flat since 2013, and lifting these restrictions would be very important to increase demand in our market, since there a lot of different usages, such as Autogas, that is forbidden here, but we have in other countries. Lifting these restrictions would enhance the LPG demand in our market.

Besides that, another key opportunity that we have is regarding the supply of LPG. Nowadays, Brazil produces approximately 70% of LPG that it consumes and the other part we import. To increase the LPG supply in the country, we need to increase our local production or create more import infrastructure. With more supply, we believe that the current restrictions would be lifted and the Brazilian LPG market will increase.

Lastly, firewood is still used in Brazil (approximately 26% of households), and LPG is its direct substitute. With targeted public incentives for this population, it would be possible to substitute the use of firewood for LPG, improving their life.

The Voice: As a WLPGA member, what are your hopes and goals for the WLPGA moving forward?

Riad Kadri: As a WLPGA member we hope to learn a lot with the association and also contribute to improve the LPG industry. LPG plays a key role in the world, and is very important for the energy transition going on. Lots of countries are still using harmful fuels, and LPG is the solution for this situation, improving both the environment and people´s health.

We expect to contribute with the association in the development of our sector, especially in the development of new technologies and of new clean sources of LPG, aiming to maintain and even increase the relevance of LPG globally.

We are willing to participate actively and with engagement in the organisation. We have participated in previous WLPGA events, but now we are looking forward to participate for the first time as member.

The Voice: Anything further to add?

Riad Kadri: Nowadays, changes are happening rapidly, and integrating WLPGA is to strengthen its representativeness and to potentialise the influence of the institution to achieve its goals.