A leading liquefied petroleum gas supplier Laugfs Gas Bangladesh Ltd is going to invest $120 million in Bangladesh in the next four years to expand its footprint and meet the growing energy demand.
This Colombo-based company has invested $40 million since 2015 in this country. The company operates LPG import, bottling and distribution facilities at Mongla port having a storage capacity of 1,800 tonnes now. The company is in the process of extending the capacity.
The company’s own LPG carrier vessel, Gas Courage, has parked for the first time at Mongla port in the first week of March which would increase the storage capacity to over 3,800 tonnes.
In addition, the company is preparing to set up multiple satellite filling stations in different parts of the country to boost the storage capacity.
Its yearly distribution of LPG is over 50,000 tonnes. Last year, the total LPG consumption in Bangladesh was 350,000 tonnes, which gave Laugfs Gas Bangladesh over 13 percent of market share in the country.
LPG consumption in Bangladesh is very negligible compared to most of other Asian countries.
In Bangladesh, only 2% population has access to LPG. Urban households, industries, and automobiles largely depend on natural gas. Though the fast-depleting gas reserves of the country are looking for alternatives such as LPG.
It is estimated that the annual LPG consumption can go up to 2 million tonnes or even more within five years to a decade.
A number of LPG operators are existing in the local retail market and more are planning to enter the market.
More than 80 percent of the demand is met by imports, and the LPG supplies are coming from either Singapore or Dubai. As a result, the freight cost is still too high.
Since Laugfs Gas’s entry into Bangladesh made a drastic drop in freight cost. Earlier the freight charge was $170 to $200 per tonne but the company managed to bring it down to $110-$100 per tonne.
The company plans to set up a world-class cylinder manufacturing plant in Mongla to supply safe cylinders to customers.
It has 40 superstores in Sri Lanka and plans to roll out similar superstores in Bangladesh as well.
It has also introduced auto gas (LP gas for automobiles) in Bangladesh and has service stations in Khulna, Jessore, Rajshahi, Rangpur and Dhaka.