Empire Gas in Puerto Rico Key Player in Hurricane Maria Aftermath

In September 2017, as BPN’s cover story about Puerto Rico’s Empire Gas celebrating its 50th anniversary was hitting mailboxes, a major news story that would dramatically affect Empire Gas and the entire island of Puerto Rico (for months and years to come) was unfolding on the island. Hurricane Maria hit Puerto Rico head-on with deadly force unleashing a fury of death and destruction that left the island devastated. Most of Puerto Rico was without power, homes were destroyed, and key cities were severely flooded. The island was for the time anything but the “Island Paradise” depicted in the photo taken weeks earlier that appeared on the cover of the September 2017 issue of BPN.

Nonetheless, the strength and resilience of Puerto Ricans comprise the next big story which has unfolded since Hurricane Maria hit the island. While many of us in the United States heard conflicting stories about the Federal Emergency Management Agency (FEMA), the federal government’s relations with leaders in Puerto Rico, and other recovery challenges on the island (a territory of the U.S.), the important work of companies like Empire Gas didn’t make daily headlines. The strength of Empire Gas was one of many crucial factors that helped return life to normal in Puerto Rico. 

Started in 1967 by Ramon Gonzalez Cordero and Ketty Simounet with $10,000 to invest, the company was named Empire Gas because Gonzalez was so confident his venture would become an empire. By 2017, the company served nearly 75% of the propane market in Puerto Rico, delivering more than 70 million retail and wholesale gallons a year to residents and industrial customers. While a tropical climate in Puerto Rico means propane isn’t used much for home heating, it is used extensively for heating water for various purposes. Restaurants are large consumers of propane, and Empire Gas has nearly 90% of that market. When Hurricane Maria hit Puerto Rico, Empire Gas immediately faced many new challenges. In addition to setting up generators for longtime customers like Burger King, eager to continue in business, countless homes without power were in demand of propane for generators for temporary power while most of the island was without electricity. 

“Our new normal for many weeks and months became long days beginning at 6 a.m. and going as late as 2 a.m. the next morning with all hands on deck driving trucks and delivering propane,” said Xavier Gonzalez Simounet, who serves as sales and marketing manager for the company. “I was one of many in the company who suddenly took on driving a truck during this 16- to 20-hour-a-day schedule to meet as many needs as we could. Others in the company who didn’t usually drive a truck did just the same. While Empire Gas is a family business, our 400 employees became part of a bigger family all working together to meet the needs of each other and as many of our customers as possible.”

“We had employees who lost everything in the hurricane show up to work the next day ready to help others,” Simounet said. “The company was able to help a number of employees who suffered losses with loans and other forms of assistance to get back on their feet.” Amid the immediate demand for propane for generators, Empire Gas employees had to navigate roads and bridges that were closed due to flooding and other hurricane damage. “During the first month, the priority on the island was getting energy back to hospitals. Empire Gas helped in this process while also taking care of as many customers as possible willing and able to pay for propane with cash at the time of delivery,” Simounet said. “Amid all of the infrastructure challenges, we were suddenly delivering 40% more propane than usual to accommodate all of the generator needs.”

Simounet noted that Empire Gas pays for all propane delivered to the island at the time of delivery and typically charges with 30-day-net terms for commercial accounts, but had to institute a cash-on-delivery policy for individual homeowners in need of propane for their home generators. “We were working long hours for many months,” Simounet said. “After six to seven months, 60% of the island’s electricity was restored, then 80% was re-established three months ago, and now 90% to 95% is back. The last year was the toughest of my life,” said Simounet.

Looking ahead, he hopes for normalcy to continue to return to Puerto Rico. “There were thousands who lost everything and many simply went to live with relatives in Florida or New York. I hope they are able to return someday if they want to. Economic conditions in Puerto Rico were a challenge even years before the hurricane. For years, we have been losing people to better opportunities in Florida, New York, or other states where they had relatives. In the past five years, Puerto Rico has seen its population drop from 4.2 million people to about 3.5 million people.” Ultimately, Simounet would like to see statehood in the United States for Puerto Rico. “I think it would open up a lot of opportunity for the island in terms of better schools and improved public services. I love the island, but Puerto Rico cannot sustain itself right now.” —Pat Thornton