The government will soon finalise a policy for setting up import-based LPG bottling plants in the private sector, Kudrat-E-Elahi, managing director of the state-run LP Gas Limited, said.
He said the proposed policy would regulate the operations of the LPG plants through monitoring through concerned government agencies like BSTI, departments of environment and explosives.
Elahi said that a number of private companies now bottle LPG (Liquefied Petroleum Gas) while many others have been keen to set new plants in view of rising demand of LP gas in the country.
'So the government felt that there should be a policy for the sector. There would be no barriers for private entrepreneurs to bottle LPG after the government finalises the policy,' he said.
'The Energy Division has already taken opinions of the concerned officials on the draft of the policy,' he added.
Elahi said that there would be no barriers in participating private entrepreneurs to bottle LPG after the government finalises the policy.
According to the draft policy, private entrepreneurs will have to apply to the Energy Division fulfilling the terms and conditions specified in the policy for setting up import-based LPG bottling plants.
Energy Division officials said that they were concerned about the safety of lives and environment in allowing the private sector to set up LPG bottling plants in the country.
In the draft, a five member expert committee categorically proposed a set of terms and conditions to be fulfilled by any applicants for setting up such plants to ensure safety aspects in operating such plants.
The location for the plant must be away from populous area, suitable arrangements for LPG import and its transportation with the facility of 10-mitre wide connective roads, and efficient handling and marketing of LPG cylinders.
Entrepreneurs will have to submit financial and economic analyses of the project to the Energy Division.
The draft made it mandatory for the companies for taking approval of the explosives department by submitting lay-out plan of the LPG bottling plant.
The LPG cylinders should be collected by maintaining the international codes and standard and the quality of LPG should be followed according to the specification of Bangladesh Standards and Testing Institute.
Interested companies will have to procure license from Bangladesh Energy Regulatory Commission before setting up all machineries and other facilities and for importing gas and transporting LPG cylinders.
They will have to collect clearance certificates from concerned government departments, fire service and civil defense, the BERC and local authority for setting up LPG bottling plant.
A company will have 18 months for setting up the plant and commissioning it after receiving the government's approval.
The draft also made mandatory for a company to have approval from Bangladesh Petroleum Corporation to ensure that the plant is built in a proper way before it starts LPG bottling and marketing.
To ensure environment protection, a company will have to follow the government and internationally recognised rules and regulations.
Presently, there is a total supply of 80,000 tonnes of LPG, catering the needs of the domestic market, but the demand is fast rising.
Of the total supply, 50,000 to 60,000 tonnes of LPG in a total of 6.4 million LPG cylinders are imported and supplied annually by private companies like Basundhara Group, Clean Heat and TotalGaz.
Bangladesh Petroleum Corporation (BPC) produces and bottles only 20,000 tonnes of LPG – 13,500 tonnes at Eastern Refinery Limited (ERL) and the rest at Rupantarita Pakratik Gas Company Limited (RPGCL).
Source : New Age
