Govt eyes up to 90,000 tonnes of monthly LPG imports from US

Bangladesh government is planning to import between 45,000 and 90,000 tonnes (MT) of liquefied petroleum gas (LPG) per month from the United States under a proposed state-to-state arrangement, officials said.

The LPG would be imported through state-owned LP Gas Limited and supplied to local distributors and operators across the country, according to officials at the Ministry of Power, Energy and Mineral Resources.

“Initially, we plan to import 45,000 tonnes of LPG per month, which could later be increased to 90,000 tonnes,” Energy and Mineral Resources Division (EMRD) Secretary Mohammad Saiful Islam told Just Energy News.

He said at least 18 local distribution companies have already expressed interest in purchasing LPG from the state-owned company once imports begin.

Procurement mechanism under discussion

According to the EMRD secretary, the government intends to invite price quotations from selected US suppliers and procure LPG at competitive rates for distribution in the domestic market.

“The proposal is still at a preliminary stage. More details will be finalised after discussions with the US State Department during our upcoming visit,” he said.

A delegation from the Ministry of Power, Energy and Mineral Resources, led by State Minister for Power and Energy Anindya Islam Amit, is scheduled to leave Dhaka on 6 June for the United States to advance discussions on a proposed memorandum of understanding (MoU) related to energy cooperation.

The state minister confirmed that the delegation is expected to return on 12 June after a week-long official visit.

LPG market faces supply and pricing challenges

Officials said only six to seven operators among the country’s 42 licensed LPG companies are actively importing LPG through a limited number of bulk carriers.

They noted that Indian companies are already importing LPG from the United States because of its relatively competitive pricing in the international market.

State-owned suppliers currently account for only about 1.33% of Bangladesh’s LPG market, while private companies dominate the sector.

Bangladesh’s annual LPG demand is estimated at around 1.5 million tonnes, driven by growing household and commercial consumption amid declining natural gas supplies.

Private operators question feasibility

Private sector operators have expressed doubts about whether the government can import and distribute LPG more cheaply than existing market players.

“I do not think the government will be able to procure LPG at a lower cost than the private sector,” said Azam J. Chowdhury, former president of the LPG Operators Association of Bangladesh (LOAB) and a director of Omera LPG.

“LPG is not like crude oil or refined petroleum products. It requires dedicated storage facilities, bottling plants and specialised transportation systems. The government currently lacks much of that infrastructure,” he said.

However, Chowdhury said private operators would welcome the initiative if the government succeeds in securing lower-cost supplies.

“If the government can import LPG at competitive prices, we will welcome the move. We would also be interested in purchasing LPG from the government,” he added.