BPC to build LP gas cylinder plant in Tangail

The Bangladesh Petroleum Corporation (BPC) has planned to set up a liquefied petroleum (LP) gas cylinder factory in Elenga, Tangail, to produce 20 lakh cylinders a year at the proposed plant.

LP Gas Limited, a subsidiary of the corporation, would implement the project. The decision was taken at a meeting of the board of directors of LP Gas Limited chaired by BPC chairman Md Abu Bakar Siddique on Sunday.

In this regard, managing director of LP Gas Limited Engr Md Fazlur Rahman Khan said they had proposed the project at the board meeting of the corporation and received initial approval from the Ministry of Energy. Expressions of Interest will be invited only after the final approval but a feasibility study will be done before that.

At present, there is demand for 1.6 crore LP gas cylinders and the demand is increasing. After five years, 15% of the cylinders will have to be replaced every year. Meanwhile, the use of LP gas is increasing at a rate of 20% per year. As a result, 50 lakh new cylinders will be required every year.

LP Gas Limited mentioned in the proposal that if new cylinders can be produced in the country without being imported, the cylinders will be available at affordable prices. Three acres of land would be required to build a cylinder manufacturing plant to produce 20 lakh cylinders annually. An initial estimate of around Tk66 crore has been made for the implementation of the project.

At present, about 20,000 tonnes of LP Gas is bottled and supplied by 4.5 lakh cylinders to marketing companies annually from two bottling plants of LP Gas Limited – North Patenga in Chattogram and Kailashtila in Sylhet.

Apart from BPC, there are currently 19 more LP gas operators in the country. Almost all of them – except Beximco, Total Gas and Laugfs Gas – make their LP gas cylinders.