Among the countries in Asia,
Bangladesh has been known for its natural gas consumption for several years.
Since the natural gas reserves are depleting day by day, the LPG industry is
growing at a rapid pace in the country. The government has also realised that
the need for alternative energy sources can be met by increasing the number of
LPG service providers and supporting the LPG
tank manufacturers in Bangladesh.
Liquefied Petroleum Gas or LPG is a
popular alternative to natural gas. Propane and Butane are the main
constituents of LPG. LPG, also known as auto gas, is used for a variety of
purposes in areas such as constructions, sailing, agriculture, hospitals and so
on. Due to the low amount of heavy metals and lead-free content in its chemical
composition, LPG is also considered a greener alternative to natural energy
resources.
Bangladesh Petroleum Corporation
(BPC) began supply of LPGs in Bangladesh in the 1980s.With a large number of
private players entering the LPG market today, there will be a rise in the
number of LPG bottling plants and
LPG tank installations. LPG filling stations installation will be set up in
many regions too. As per the recent report by World LPG Association (WLPGA),
the demand for fuel in Bangladesh will reach 3.0 million tonnes by 2025.
Factors driving the LPG industry’s
growth in Bangladesh:
- Rising demand for LPG among consumers
Bangladesh is a growing economy. The
income level per family is rising too. With natural gas shortage in future, the
demand of LPG services will increase. LPG prices are affected by global fuel
prices. Government subsidies can be a relief for private players to offer
competitive prices for LPG services. Also, the increasing earning potential of
the people will make it easier for them to switch to LPG usage.
- Government Initiatives for auto LPG
Other than LPG tank installation for households,
there is opportunity for LPG tank manufacturers in Bangladesh in the automobile
sector. The Bangladesh government has already released the rules and
regulations for auto LPG conversion centres and auto LPG filling stations.
These initiatives will encourage switching from CNG to LPG for automobile
owners in Bangladesh.
- LPG licenses for private companies
When the demand for LPG increases in
the market in the future, there will be a number of LPG service providers for
consumers to choose from. The Bangladesh government has already granted
licenses for LPG services to over thirty private operators.
- Opportunities in rural markets
Other than rising demand for LPG in
urban markets, there is untapped potential in the rural markets. There are
rural areas in Bangladesh where piped gas services have not reached yet and the
existing energy supply may not be enough. This also means that there is immense
opportunity for LPG vapourizer manufacturers and LPG
tank manufacturers in Bangladesh.
Bangladesh is one of the rapidly
growing developing countries in Asia. There are several private companies
including LPG tank manufacturers who look forward to increase their plant
capacities and upgrade their operations. Operational efficiencies will lead to
better customer services in a competitive LPG market of the future.
While the LPG market in Bangladesh grows, there
will be need for high-quality engineering products as well. Outsourcing of
these LPG products from reputed global players will help reduce the cost of LPG
filling stations installation.
