Table of Contents
- LAUGFS at a Glance in Bangladesh
- Country Facts
- Overview of Natural Gas in Bangladesh
- LPG Scenario of Bangladesh
- Developing LPG Market in Bangladesh: Opportunities & Challenges
- Recommendations
Content Table
LAUGFS Gas (Bangladesh) Limited
The company started with the Australian brand ‘Kleenheat Gas’ and then “Petregaz” in Bangladesh. Finally,Laugfs Gas took over the business from Petredec Elpiji Limited in 2015. Having entered the local LPGdownstream industry in 2001, LAUGFS has grown rapidly over the years, establishing an extensivedistribution network across the country.
LAUGFS operates a world-class LPG import, bottling and distribution facility in Mongla Port with a storagecapacity of 1,800 MT with additional 3,200 MT construction work ongoing. It distributes LPG for domestic,commercial and industrial customers with an extensive nationwide cylinder distribution network. Being thefirst to introduce Autogas to Bangladesh, LAUGFS also supplies LPG to eight automobile service stations inBangladesh. LAUGFS is also the first LPG operator in Bangladesh bringing in imported LPG directly from thesource on its own sea vessel, namely Gas Courage.
LAUGFS Gas (Bangladesh) Limited:
- Terminal Location: Mongla Port. - Sphere Capacity: Currently 1800 MT. and another 3200 MT. installing.- Only Laugfs owns three pressurized sea going LPG Vessels named Gas
Challenger, Gas Success & Gas Courage- 100% Imported Cylinders. - Carousel - 24 head Automated Stations
Area: 147,570 sq kmPopulation: 168,957,745 (Estimated)Capital: DhakaPopulation in Urban Area: 55 MillionHousehold: 34 millionPopulation In Rural Area: 113 MillionPer capita income: USD 1,610Economy: 44
thlargest in the world
GDP Growth Rate: 7.2% per yearVillages: 87,316Rivers: 800Population Growth rate: 1.2%Literacy rate: 59%
Country Facts
Source: bangladesh.gov.bd
Bangladesh: At a Glance
Natural Gas Outlook:
Sector wise Consumption: 2015-2016
Natural Gas Outlook
SectorConsumption
(BCF) 2015-2016
Grid Power 399.60
Captive Power 160.80
Industry 156.00
Fertilizer 52.60
Domestic 141.50
CNG 46.50
Commercial & Tea 9.00
Source: Petrobangla Annual Report 2016
Natural Gas Outlook:
Price Change in Recent Years
Natural Gas Outlook
YearSingle
Burner/BDT%
IncreasedDouble
Burner/BDT%
IncreasedCNG/CM
(BDT)%
Increased
2014 400 - 450 - 30 -
2015 600 50% 650 55% 35 17%
2016 600 0% 650 0% 35 0%
2017 750 25% 800 23% 38 9%
2017 900 20% 950 19% 40 5%
1 USD = 83.50 BDT
Natural Gas Outlook: Supply & Demand
Natural Gas Outlook
Annual gas consumptionmay exceed 1.0 Tcf by 2020as per gas sector masterplan
The demand for gas willstand at 8,000 MMCFD in2041 according to anestimate of the energydivision.
-
1,000
2,000
3,000
4,000
5,000
6,000
NG Demand & Supply Forecast
Demand/MMCFD Supply/MMCFD
Source: JICA Project Team based on the data from “Data Collection Survey on Bangladesh NG Sector” 2012Published by: Power Division, 2015
Natural Gas Outlook: Govt. Future Plan
Natural Gas Outlook
35 million tonnes or 3,500 MMCFD of LNG supply in 2041 through using the an underconstruction floating and land based LNG terminals.
Another 1,300-2,300 MMCFD would be supplied from local sources.
Already stopped permitting new CNG stations in Bangladesh
According to the Energy Division of Bangladesh, Govt. wanted to completely stop the use ofCNG by 2021 through replacing those with adequate number of LPG Autogas stations acrossthe country.
48 LPG licensees and counting, 43 filling plants are to be constructed, 23 LPG terminals arebeing built plus 16 more to come.
Source: The Daily Star, Energy & Power Magazine
LPG Outlook
Feb-18
Sl. No.Company
NameApprox. Storage Capacity (MT)
1 LAUGFS Gas 1,800
2 Bashundhara 9,400
3 Jamuna 3,100
4 TotalGaz 2,610
5 Omera 5,500
6 BM 3,150
7 SKS 3,000
8 BPC 1,540
9 Beximco 3,000
10 G Gas 3,000
11 Orion 3,000
12 Navana 5,000
13 Universal 80
14 Bin Habib 120
15 Padma 80
Approx. Total 44,380
0 2,000 4,000 6,000 8,000 10,000
LAUGFS Gas
Bashundhara
Jamuna
TotalGaz
Omera
BM
SKS
BPC
Beximco
G Gas
Orion
Navana
Universal
Bin Habib
Padma
Approx. Storage Capacity (MT)
Active LPG Players: Current Capacity
On Map: LPG Terminals
Year LPG Terminal (No)
2012 6
2013 6
2014 6
2015 8
2016 8
2017 12
2018 14
2019 18
2020 20
2021 22
2022 24
2023 26
2024 28
2025 30
On Map: Satellite Filling Stations
Company Name Satellite Capacity (MT)No. of Satellite
Stations
Bashundhara 4,400 3
Jamuna 300 1
TotalGaz 108 2
Omera 1,000 3
Universal 80 1
Bin Habib 120 2
Padma 80 1
BM Energy 150 1
Use of LPG in Different Sectors…
LPG Outlook
Domestic81%
Others3%
Industry14%
Transport (autogas) 1%
Large Industry1%
Domestic Industry Transport (autogas) Chemical
LPG Growth Forecast:
LPG Outlook
6
8
12
18
2224
26
28
30
0
5
10
15
20
25
30
35
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
MT
Year
LPG Import Forecast (MT)
LPG Import (MT) LPG Terminal (No)
LPG Outlook
Supply Chain of LPG
12 Companies is current market and more are coming.
650,000+ MT product flow through the channel per year.
20+ million LPG cylinders injected to the market till now.
LPG Outlook
LPG Suppliers/Traders:
Petredec
•Serving over 110 customers across six continents
•Trading over 10 million tonnes of LPG per year
•Owns over 50 LPG Vessels
Shell•Currently the 2nd largest supplier in BD
•Also operates from Maldives
Siam Gas•20 LPG Tanker Vessel with the combined loading capacity of
over 110,000 tons.
•3 VLGC with combined loading capacity of 106,000 tons.
Itochu Corporation •Trading based from Singapore. Active from last 2 years
LAUGFS Gas•Owns 3 LPG Vessel
•Hambantota, Sri Lanka pressurized terminal of 30kt to start from Jun 2018
Others •OTI, Petro Vietnam, Petronas Malaysia, BB Energy, Trafigura
Opportunities
Demand for LPG is increasing, whereas
reserves of NG is depleting.
•Last few years showing 30 - 50% growth based on various segment on year to year basis
Around 2.5 million NG domestic user to be converted in LPG by
2025
•Government increased NG price across all user levels
•More than 1 million illegal NG connections
Autogas can replace CNG, Petrol/Octane
•CNG price increased in 2017. Provided government promoting Autogas – it can be the right substitute for CNG
GDP growth crossed 7%; per capita income
estimated USD 3,000 which is USD 1600+
now.
•Purchase power increase makes alternate fuel like LPG more attractive
Challenges
Safety throughout the value chain
International Price fluctuation of LPG
Insufficient infrastructure causing higher transport cost
Influence of Channel Partners
Government policy, bureaucracy
Sourcing of LPG, lesser draft in rivers
Unplanned expansion of city
Others….(cost of business, distribution etc.)
Challenge: Converting the NG domestic users
No of NG customers (approx.)
LPG use/month
(kg)
Additional Yearly LPG requirement
(MT)
Additional cylinders required (pcs) approx.
2,500,000
12 360,000 1 crore
18 540,000 1.25 crore
24 720,000 1.60 crore
- Another 1 million+ illegal connection of NG exists in the country- Total 3 million+ households using a mixture of NG, LPG, Kerosene, firewood,
electricity, bio-fuel etc.
Recommendations:
Favourable Government
Policy
• Minimum bureaucracy: Quick approvals, One point service
• Favourable import duties, initial VAT & Tax exemption
• Ensure quality investment (local and foreign) with higher value addition
• Pricing strategy of NG, Fuel Oil, other alternatives
Promote LPG
• Government and LPG Operators need to promote LPG as the best alternative fuel
• Change people’s perception positively on LPG as safe and efficient
• Brand awareness, safety campaign
Thank YouMohammed Saidul [email protected]@laugfsgas.com.bd+8801730300370