Anisul Islam Noor :
The government is going to make the Liquefied Petroleum Gas (LPG) policy final keeping import- export option for the entrepreneurs.
The Ministry of Power, Energy and Mineral Resources (MPEMR) has already published a gazette notification in this connection styled ‘LP Gas Operational Licensing Policy 2017.
As per the policy, private firms will be authorized to carry out LPG business, which includes import, production, storage, supply and transportation, said Akramuzzaman,
Deputy Secretary of the Energy and Mineral Resources Division (EMRD).
Licenced firms can produce, import and export LPG as per policy the government has drafted for the first time in the country.
Potential firms will be given licence and the licencees will be called ‘LP Gas Operator’, sources said.
They can set up LPG terminals, auto-gas filling stations, auto-gas conversion plants and LPG-bottling plants under the policy that opened up the petroleum-fuel sector to cater burgeoning energy demand in the country.
The licencees would hold the authority to supply LPG to households, auto-gas stations, and to commercial and
industrial clients through engaging dealers or franchises.
They can also export bottled LPG or LPG in bulk quantity after attaining no- objection certificate (NOC) from the EMRD and necessary approval from the commerce ministry.
Bangladesh earlier had issued licences to private companies only to build LPG storage and bottling plants.
But the licencees under the new policy would have the authority to carry out all sorts of LPG business, said the EMRD official.
“We have kept provision of exporting LPG also as an opportunity for the licencees to supply the fuel to other countries after meeting local demand,” Akramuzzaman said.
Experts said the licencees might tap the potential market of landlocked northeastern Indian states along with Nepal and Bhutan under the gas-export provision.
I think LPG could be re-exported from Bangladesh to northeastern Indian states, where access to fuel is difficult,” said Professor M Tamim, who looked after Bangladesh’s energy issues as Special Assistant of the previous Caretaker Government during 2006-07.
Indian Oil Corporation (IOC) already inked a memorandum of understanding (MoU) last year with the state-owned Bangladesh Petroleum Corporation (BPC) to build LPG-import terminal at Bangladesh’s Chittagong port and laying a Chittagong-Tripura pipeline to carry the imported LPG, said a senior BPC official.
BPC in January also floated an international tender seeking a joint-venture partner for construction and operation of import-based LPG storage, bottling and distribution plant at Mongla in Southern Bangladesh having the capacity of 100,000 tonnes per year, he said.
Under the new LPG policy, the new licencees must have LPG-storage tanks having the minimum capacity of 5,000 mts and requisite number of transports to carry LPG in bulk quantity.
The firms that are already in LPG business in Bangladesh have to take licence from the government within six months.
The government will regulate LPG prices following consultation with stakeholders, as per provision of the policy.
LPG pricing in the country is currently market-based. The price of a 12.5-kg cylinder of LPG marketed by the state-run BPC is fixed at Tk 700 ($8.91) and private companies sell LPG at prices ranging from Tk 850 to Tk 1,000, market sources said.
The government had earlier stopped new piped gas connections to households to keep wastage in check and ensure efficient use of the limited fossil fuel.
LPG consumption in 2015 stood at 200,000 tonnes, which soared to 300,000 tonnes in 2016.
Demand is estimated to rise to 300,000 tonnes per year by 2017, but MPEMR estimates that actual demand could be around 500,000 tonnes, as consumers use kerosene and wood as alternatives to LPG for lack of availability.
Once the new licencees start operations, LPG would be available in most areas across the country, which in turn will raise consumption substantially, Akramuzzaman said.
State-owned LP Gas Ltd., a subsidiary of BPC, produces 20,000 tonnes of LPG. Private companies Laugfs Gas, Totalgaz, Bashundhara, Jamuna Spacetech, Omera Petroleum and Linde import a combined 280,000 tonnes from the spot market, leaving a supply shortfall of 200,000 tonnes.
The government is going to make the Liquefied Petroleum Gas (LPG) policy final keeping import- export option for the entrepreneurs.
The Ministry of Power, Energy and Mineral Resources (MPEMR) has already published a gazette notification in this connection styled ‘LP Gas Operational Licensing Policy 2017.
As per the policy, private firms will be authorized to carry out LPG business, which includes import, production, storage, supply and transportation, said Akramuzzaman,
Deputy Secretary of the Energy and Mineral Resources Division (EMRD).
Licenced firms can produce, import and export LPG as per policy the government has drafted for the first time in the country.
Potential firms will be given licence and the licencees will be called ‘LP Gas Operator’, sources said.
They can set up LPG terminals, auto-gas filling stations, auto-gas conversion plants and LPG-bottling plants under the policy that opened up the petroleum-fuel sector to cater burgeoning energy demand in the country.
The licencees would hold the authority to supply LPG to households, auto-gas stations, and to commercial and
industrial clients through engaging dealers or franchises.
They can also export bottled LPG or LPG in bulk quantity after attaining no- objection certificate (NOC) from the EMRD and necessary approval from the commerce ministry.
Bangladesh earlier had issued licences to private companies only to build LPG storage and bottling plants.
But the licencees under the new policy would have the authority to carry out all sorts of LPG business, said the EMRD official.
“We have kept provision of exporting LPG also as an opportunity for the licencees to supply the fuel to other countries after meeting local demand,” Akramuzzaman said.
Experts said the licencees might tap the potential market of landlocked northeastern Indian states along with Nepal and Bhutan under the gas-export provision.
I think LPG could be re-exported from Bangladesh to northeastern Indian states, where access to fuel is difficult,” said Professor M Tamim, who looked after Bangladesh’s energy issues as Special Assistant of the previous Caretaker Government during 2006-07.
Indian Oil Corporation (IOC) already inked a memorandum of understanding (MoU) last year with the state-owned Bangladesh Petroleum Corporation (BPC) to build LPG-import terminal at Bangladesh’s Chittagong port and laying a Chittagong-Tripura pipeline to carry the imported LPG, said a senior BPC official.
BPC in January also floated an international tender seeking a joint-venture partner for construction and operation of import-based LPG storage, bottling and distribution plant at Mongla in Southern Bangladesh having the capacity of 100,000 tonnes per year, he said.
Under the new LPG policy, the new licencees must have LPG-storage tanks having the minimum capacity of 5,000 mts and requisite number of transports to carry LPG in bulk quantity.
The firms that are already in LPG business in Bangladesh have to take licence from the government within six months.
The government will regulate LPG prices following consultation with stakeholders, as per provision of the policy.
LPG pricing in the country is currently market-based. The price of a 12.5-kg cylinder of LPG marketed by the state-run BPC is fixed at Tk 700 ($8.91) and private companies sell LPG at prices ranging from Tk 850 to Tk 1,000, market sources said.
The government had earlier stopped new piped gas connections to households to keep wastage in check and ensure efficient use of the limited fossil fuel.
LPG consumption in 2015 stood at 200,000 tonnes, which soared to 300,000 tonnes in 2016.
Demand is estimated to rise to 300,000 tonnes per year by 2017, but MPEMR estimates that actual demand could be around 500,000 tonnes, as consumers use kerosene and wood as alternatives to LPG for lack of availability.
Once the new licencees start operations, LPG would be available in most areas across the country, which in turn will raise consumption substantially, Akramuzzaman said.
State-owned LP Gas Ltd., a subsidiary of BPC, produces 20,000 tonnes of LPG. Private companies Laugfs Gas, Totalgaz, Bashundhara, Jamuna Spacetech, Omera Petroleum and Linde import a combined 280,000 tonnes from the spot market, leaving a supply shortfall of 200,000 tonnes.
