Dean Peart and William Shagoury, both former directors of the Petroleum Company of Jamaica (Petcom), have entered Jamaica’s competitive liquefied petroleum gas (LPG) market with a new brand called Jamgas.

The company offers 25-pound cylinders and a distinctive 28-pound cylinder, aiming to establish a foothold in an industry dominated by major players like Massy’s GasPro and IGL.

Peart and Shagoury, seasoned professionals in petroleum marketing and distribution, also serve as principals of Bill’s Gas, a filling plant in Clarendon, and hold shares in two additional filling plants: Costal Gases Limited and Manchester Gas. Bill’s Gas now distributes Jamgas-branded cylinders, presenting a refreshed image in the market. Company representatives have described this move as a rebranding effort.

Peart and Shagoury were unavailable for further comment.

The rebranding follows an ongoing legal dispute with Petcom, which alleges that Jamgas and its affiliates have been unlawfully repurposing Petcom-branded cylinders, potentially compromising consumer safety and damaging Petcom’s reputation. Earlier this year, the High Court granted Petcom an interim injunction preventing Jamgas and associated companies from collecting, filling, and distributing Petcom-branded cylinders. Court documents alleged that Jamgas, along with Manchester Gas and Bill’s Gas, rebranded Petcom cylinders without authorization, raising concerns about quality control and safety.

Jamaica’s LPG sector, valued at approximately $25 billion, is a vital energy source for both residential and commercial users. Recent entrants like Fesgas — the LPG or cooking gas segment of Future Energy Source Company, Fesco, which deals in petroleum marketing and distribution — have introduced innovations such as no-BLEVE cylinders, designed to prevent boiling liquid expanding vapour explosions (BLEVE) to woo consumers. These cylinders are constructed from high-strength, low-thermal conductivity materials and feature pressure relief valves to mitigate explosion risks.

Fesgas has captured 2.5 per cent of the LPG market within its first six months, supported by a network of over 20 service stations.

It’s unclear whether Jamgas’ cylinders carry the same specification; however, it is presumably the first brand to directly compete with Fesgas’s No-BLEVE cylinders.

The Jamaica Observer reached out to Jeremy Barnes, CEO of Fesco, for comment on the matter, but he responded indirectly to Jamgas’ entry, supplying a comparison photo to illustrate subtle differences between the brands.

While both designs share a modern appearance, Fesgas cylinders boast a blue and white palette with a mint green tint, whereas Jamgas cylinders are primarily mint green with blue accents.

One year in, Fesco says its venture into the LPG business has exceeded projections so far, and that it is gearing up to increase efforts to take on competitors though it continues to indicate growth in the segment will be limited by the need for capital.

Fesco reported $590 million in LPG sales for the last financial year, accounting for just over two per cent of its total $28.7 billion revenue for the 2023/24 period. The majority of Fesco’s earnings came from its wholesale and retail petroleum products business, primarily distributed through its network of service stations.

Although priced similarly to standard cylinders, Jamgas’s new model may be struggling to gain traction. One retailer of the sleek 28-pound cylinders said some Jamaican consumers remain sceptical of the lighter, modern material used, fearing it may hold less gas or pose unfamiliar risks.

“They think they’re being short-changed because it’s lighter. They also worry it might explode, so they prefer the traditional cylinders.” the retailer said.