What are the Challenges & Opportunities in the LPG Market in Bangladesh?

Among the developing countries, the economy of Bangladesh is growing at a rapid pace with a growth rate of 7.2%. LPG tank manufacturers are in demand to push the LPG demand in the country.The demand for LPG has increased at an exponential rate of 60%. The reason for this sudden rise is the suspension of natural gas connections in the country. But along with opportunities there are numerous challenges for the LPG market in Bangladesh.

Challenges in the LPG market in Bangladesh:

At the moment, Bangladesh has a LPG supply capacity of 4,00,00 MT/year which is way less than its enormous demand of 1.5 million MT/year. In the next five years, experts estimate a 400% growth in the LPG sector in Bangladesh. Although there are government initiatives to support the LPG industry, the biggest challenge to the LPG market is that the supply cannot keep pace with the demand in the industry. It will take time for investors in the LPG space to set up the infrastructure and reach out to all the areas where there is demand. A plan for LPG tank installation, LPG filling stations installation,LPG bottling plant, LPG service lines and other details to transition from CNG to LPG is necessary for carefully tackling the challenges faced by the LPG market in Bangladesh.

Opportunities in the LPG market in Bangladesh:

Initially, the Bangladesh government served its people with CNG which also included import of fuel to meet the demand in the country. But now natural gas has become scarce and costly. It will be completely depleted by 2022-2023 if new gas supply capacity isn’t added to meet the increasing demand for fuel. In the recent years, in view of the growing energy concerns, the regulatory authorities of Bangladesh took decisions to promote LPG consumption in the country.

According to an industry report, the energy division of Bangladesh estimates a gas demand of 8,000 MMCFD by 2041. Hotels and restaurants are one of the major energy usage sectors in Bangladesh. CNG will not be available for long for this sector as well as other commercial use sectors such as agriculture, lighting, metal and more. LPG will be the ideal clean alternative for catering to energy demand for commercial applications.

Some of reasons that have led to opportunities in the LPG sector are as follows:

• Rise of entrepreneurs in the country

Economic growth, higher literacy levels and women empowerment has led to more and more entrepreneurs in Bangladesh.

• Wealthy population with increase in the income

As per statistics, the per capita income of Bangladesh is expected to increase to US$ 1,752. The growing income is turning Bangladesh in to a middle-income country. LPG will become affordable for the financially secure citizens of the country.

• Increasing use of LPG as an auto fuel

In Bangladesh, more than 1,000 auto gas station licenses have already been awarded by the government to promote the use of auto fuel. The target is to convert 2,50,000 vehicles into vehicles running on auto gas.

• Tax benefits

The Bangladesh government provides tax exemption on import of LPG. Also, LPG equipment can be imported to Bangladesh at 2% less tax than the normal tax rates.

AEPL is notable exporter of LPG vaporizer and other components needed in the LPG industry. If you are looking for LPG tank manufacturers with expertise in LPG tank installation, LPG filling stations installation andLPG bottling plant, you can contact AEPL at sales@aeplglobe.in.

Challenges and Needs in LPG Sector

LPG Tank manufacturers and entrepreneurs who are part of the LPG industry are excited for its growth but are concerned about the challenges facing the industry as well. Economic growth in India is propelling the growth of the LPG industry in the country. There is a rise in the LPG filling stations installations and LPG bottling plant installation.

Today, the LPG industry is divided into industrial, commercial, transports and domestic segments. As per a recent report, Indian consumers use 21.2 million tons of LPG of which 90% is used as cooking fuel. In the midst of concerns such as global warming and sustainable energy needs, LPG is a clean gas which can have enormous significance in the country.

Some of the key challenges in the LPG sector are as follows:

• Correct Positioning

LPG is a clean burning energy that consists of 60% natural gas and 40% fossil fuels. Among other energy sources such as petrol, kerosene and diesel, the positioning of LPG should be that of a clean energy. The multiple applications of LPG as a green fuel or clean energy should be highlighted to promote its usage.

• Cost of storage, transport and distribution

To meet the demand in remote areas, the transport infrastructure should be in place. But there are still many regions where transportation costs for LPG is high and it becomes difficult for LPG service providers to manage the supply. LPG requires specialised equipment such as LPG tank installations to store it, package it and distribute it.

The returns from the industry should justify the investments for LPG service providers to open more LPG service centres and for more people to have easy accessibility to LPG. There is a need for initiatives that will make LPG businesses safe and sustainable for entrepreneurs and affordable for end users.

• Quality of alternate energy sources

Earlier, the quality of LPG was competitive compared to petrol and diesel. But research has improved the quality of petrol and diesel. The quality edge that LPG industry once had isn’t working for it anymore.

Switching pattern of fuel usage

Source:https://www.bharatpetroleum.com/images/files/DCPatraIJMRASept2017.pdf

• Transition for consumers

Consumers who have been using traditional sources of energy such as firewood, coal, and others need time to adapt to the use of LPG. Adequate awareness is required to educate these users about the benefits of LPG and the ways to safely use it. Awareness will help members of the LPG industry to tap into different markets and boost the growth of the LPG industry.

Competitive pricing, cleanliness and efficiency are determining factors for people to choose a specific energy for usage. Rising income and mobility between rural and urban areas also has an impact on the energy usage behaviour in the country. LPG Tank manufacturers and other businesses operating in the LPG sector along with industry bodies and government initiatives are trying to change the perception of potential consumers through promotional messages.

As per an industry report, in 2016-17, 33.2 million households were enrolled in to LPG usage in India through the Pradhan Mantri Ujjwala Yojana. Government initiatives like these have led to an increase in the LPG tank installations in India and are trying to ease the difficulties in the LPG sector. The LPG penetration into rural areas is changing the fuel usage behaviour in the country.

AEPL is a leading name among LPG Tank manufacturers in India. The company offers superior quality LPG vaporizers, safety valves, ball valves, vane pumps and more. For specialised LPG storage and installation needs, contact AEPL at sales@aeplglobe.in.

Assessing the Safety Operations Processes of an LPG Storage Plant

In an LPG Bottling plant, there are several risks to be prevented. It is essential for LPG tank manufacturers to implement safety measures for prevention of any undesired incident on site. Firstly, the best practices for LPG tank installation generally involve evaluation of standard safety operations procedures.

Knowledge of LPG and safety

Since LPG is odourless and not visible to naked eyes, a distinct odour is added to the gas to detect any leakage. The knowledge of qualified staff about LPG along with long-lasting products parts are essentials for a safer LPG storage plant. LPG is widely used and structured safety guidelines can reduce the risks involved in its usage.

Also, LPG is heavier than air in low-level areas so this feature of LPG makes it difficult to detect any leakage. Factors like these have to be considered by the experts managing the LPG filling station installations. LPG leakage can lead to a fire, bursting of the storage tank and more undesired hazards.

System thinking ideas along with simulation tools are utilized by manufacturers to assess the risks. Identification of risks helps to put a plan in place for safety management of LPG storage plants. A set of well-documented rules and control mechanisms along with safety training for workers ensures successful implementation of the safety processes designed by the experts.

Assessment for storing LPG

LPG can be harmful until it has been safely utilized by the end user. To ensure the safer use of LP gas, the LPG tank installation, storage and discharge should be carried out as per industry standard safety best practices. The Standard Operating Procedures (SOPs) play an important role in the prevention of LPG related hazards.

The evaluation of safety procedures ensures that SOPs are designed by LPG tank manufacturers as per the scale and specifications of the LPG storage plant. The assessment also helps prepare safety procedure manuals and other communication materials for workers to understand and manage risks related to the LPG storage space.

Understanding the risks of an LPG bottling plant will help device safety plans to prevent incidents and in case of an incident, tackle the situation in the best possible way to ensure minimum damage by following the safety protocols.

Here is a chart describing the likely sequence of events that can take place after LPG release:

Source:http://www.dgfasli.nic.in/newsletter/jan_mar2001.pdf

Following are some of the key operational areas to be assessed for a safer LPG bottling plant:

• As per a document published by DGFASLI, the impact of a breakage in the LPG pipeline is affected by the diameter of the pipeline. Reducing the diameter of the LPG gas pipeline will ensure that the gas leakage will lead to lesser damage to life and property.
• The chances of LPG discharge line breakage can be minimized if the line is placed through the roof of the LPG storage tanks.
• LPG tank installations have to be made as per a set capacity to avoid leakage. Small capacity tanks take lesser time to discharge the gas while emptying the tanks.
• The LPG storage tanks should be kept at a sufficient distance from each other. Isolated tanks reduce the possibility of a greater safety concern i.e. one tank leakage triggering the bursting of the other.

Experienced LPG tank manufacturers and LPG vaporizer manufacturers are aware of the risk assessments and safety procedures to avoid mishaps at LPG plants. For efficient and safer LPG tank installations, you need the expertise of highly experienced LPG Tank manufacturers.

AEPL’s team of engineering experts have a background of numerous successful LPG filling station installations. To know more, contact AEPL experts at +918097051488

LPG industry growing rapidly in Bangladesh

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:

1. 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.

2. 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.

3. 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.

4. 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.

Guidelines for LPG Filling Stations Installation

LPG is and will continue to be a major source for cooking and its share in vehicle industry is also going up with time. To ensure convenience of the mass and easy availability of LPG, refilling stations have to be set up. It is necessary to buy parts from the right agency and hiring apt ones for setting up LPG filling stations is also necessary.

Prerequisite for setting up LPG Filling center

Setting up LPG filling stations involves installation of important parts and spares and a company well versed in this sector can handle such tasks. LPG being a highly inflammable substance, it becomes necessary to assess credibility and capability of available contenders and choose the one making highest quality product. Quite often, the companies manufacturing such specialized products also offer lpg tank installation for the buyers and clients.

Buying the right parts and components

The vane pump is among the most important parts used in setting up LPG filling centers, as it is. It is better to acquire quality rotary vane pumps with enhanced mechanical efficiency from reputed manufacturers. This ensures LPG filling and transfer can be handled without hassles and risk of leakage will be very low. It is also necessary to procure high quality parts like LPG gas vaporizer, safety relief valves and electric propane vaporizer to set up refilling stations.

How to choose the manufacturers

For LPG filling and transfers at the refilling stations, buying highest quality products is a need you simply cannot ignore. Using the following tips to assess the manufacturers will be useful:

• Tenure- First of all, you need to learn about tenure of the manufacturing company. A company with long tenure and experience in manufacturing products required for LPG handling is better than new ones.
• Clientele- The existing clientele and completed projects of the lpg filling stations installation company have to be analyzed with care. It is better to go for products and services of a company that has several coveted clients, including international ones.
• Safety protocols and certifications-The company manufacturing LPG filling and transfer components should adhere to industry standard safety protocols. It is always better to pick a company that is known for compliance to manufacturing safety standards and has credible certification in this regard. Some of the lpg bottling plant manufacturers and installers resort to cutting edge and patented technologies to manufacture specific parts and pumps for use in LPG stations.
• Product range- The existing product range of the company making Vane pump and other LPG transfer and filling products should be checked. It is better to pick a company with wide product range. Some companies may even make customized pumps to meet client requirements well.

A final assessment
Top notch lpg tank manufacturers have online presence and their websites offer in-depth information on product range and related aspects. However, the buyers may still do some additional assessment before placing order. Direct interaction with the companies through email, chat can be helpful and using social media a can be beneficial too.