FESCO Prepares to Launch into LPG

• In demonstratively supporting its strategic growth agenda, Future Energy Source Company Limited (FESCO) introduces its cooking gas brand FESGAS and advises that it has acquired the assets related to the liquefied petroleum gas (LPG) business of Wilson Beck LPG Limited (WB). The transaction was completed on Wednesday, April 5, 2023. This asset purchase supports the advancement of FESCO’s goal of entering the cooking gas market under the FESGAS brand.
• FESCO’s Managing Director, Jeremy Barnes commenting on the acquisition highlighted that the assets acquired are appealing for many reasons, including the plant’s capacity and throughput.
• WB began distributing cooking gas in April 2020 from its business location in Bernard Lodge, St. Catherine and at the same location began its LPG filling plant operation in May 2021.
• According to WB’s Managing Director, Gregory Beck, the move will see FESCO inheriting a state-of-the-art LPG filling plant at Bernard Lodge, St. Catherine as well as a loyal group of gas dealers from the distribution network in south-eastern Jamaica. The plant will give FESCO the ability to immediately start supplying consumers and take advantage of the groundwork that has been completed over the last couple of years.
• FESCO will launch its LPG business within the first quarter of its next fiscal year (June 2023). This acquisition will bolster revenue growth as it allows the company to expand its value-added products and improve operational efficiency, which ultimately increases shareholders’ value. 

(Source: JSE)