Geogas Cook Islands Limited says its first obligation is to fulfil its commitments to loyal customers, after a rival company, TOA Gas, accused them of refusing to sell them gas during ongoing shipping delays earlier this month, threatening legal action.

TOA Gas ran out of supplies last month and asked Geogas to fill their bulk tanker so they could complete their bulk tanker deliveries. But Geogas refused to sell them gas “even at a retail price”, according to TOA Gas owner Brett Porter.

Porter earlier claimed Geogas’ refusal to supply was in contravention of the Consumer Guarantees Act 2008 or the Fair Trading Act 2008 and he would pursue legal action against their competitor.

The cargo vessel arrived more than a week ago with supplies, and there was no update from Porter on whether he was still pursuing legal action.

Cook Islands News approached Geogas for comments on September 4, 2024.

Raymond Singh, general manager of Geogas Cook Islands Limited, responded last week, defending their actions.

Singh said Geogas’ first obligation was to fulfil their commitments towards loyal customers who have established long-term supply relationships with them.

According to Singh, Geogas’ commitment and priority are to ensure a continuous, safe and reliable supply of LPG to their valued customers.

He added that they maintain an inventory strategy that aligns with the needs of their existing customer base, ensuring that they carry adequate stock to meet their demand until the arrival of the next scheduled shipment.

“This approach allows us to manage stock efficiently while safeguarding against supply chain disruptions, which can arise due to international shipping delays or other unforeseen circumstances,” Singh said.

He said they have also made significant onshore investments in their LPG terminal infrastructure, enhancing their storage capacity and operational efficiency.

“These investments demonstrate our long-term commitment to the Cook Islands, reinforcing our ability to sustainably meet the growing demand while maintaining the highest safety standards.”

According to Singh, Cook Islands Ltd is a subsidiary of Geogas Pacific and is a part of the global Geogas Group which was formed in 1979 “but has a lineage that stretches back over 60 years to the pioneering days of gas transportation”.

“Singularly focused on seaborne trading and transportation of LPG, everything we do is guided by our long-term commitment to serving our customers, protecting the environment, strengthening communities we serve, supporting our teams and creating value for our stakeholders.

“Geogas manages a fleet of some 60 LPG carriers, either directly owned or chartered, transporting over six million tons of LPG across the globe annually.

“Seven of these ships are dedicated to the Pacific region and able to supply to Rarotonga. This represents a significant capital commitment by Geogas to its customers.”

“The Pacific region which Geogas serves covers some 168 million square kilometres. Managing supply lines over such an area for the benefit of our loyal customers is something me and my team take great pride in.”