Key facts
- Puerto Rican propane buyers have purchased 24% of their annual demand from the US since mid-March.
- This volume was transported via five foreign-flagged vessels under a Jones Act waiver.
- Importers are advocating for a permanent Jones Act exemption, citing supply security concerns.
- The US government renewed the temporary waiver for an additional 90 days on August 10.
Puerto Rican propane buyers have significantly increased their purchases from the US mainland since mid-March, with nearly a quarter of their annual demand being met through shipments facilitated by a Jones Act waiver. According to data from the US Department of Transportation Maritime Administration (MARAD), five foreign-flagged vessels have transported a total of 809,000 barrels of propane to the island since the waiver began on March 18.
This volume represents 24% of Puerto Rico's estimated annual demand of approximately 3.33 million barrels, as stated by Ramon Gonzalez, chief executive of Empire Gas. This marks a substantial shift from 2025, when no US-loaded propane was sent to Puerto Rico, with most shipments originating from the Dominican Republic.
Major gas buyers on the island are now calling for a permanent exemption from the Jones Act. They argue that supply security is a critical concern, particularly given Puerto Rico's susceptibility to hurricanes. MARAD data indicates that while 92 Jones Act-eligible vessels were operational in March 2026, none were LPG carriers, making it difficult for importers to access US propane even if they wished to comply with the Act.
Gonzalez emphasized the necessity of a permanent exemption, noting that propane is a vital fuel for various uses on the island, from domestic purposes to power generation. Luis Humberto Berrios, vice president of LPG distributor Tropigas, echoed this sentiment, suggesting a permanent waiver would enhance access to markets and improve supply security, similar to the long-standing exemption for the US Virgin Islands.
In the near term, the US government extended the temporary waiver for propane access to Puerto Rico by another 90 days on August 10.