Government's liquid gas project won’t affect private investors
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
THURSDAY, MAY 26, 2022
THURSDAY, MAY 26, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Government's liquid gas project won’t affect private investors

Interviews

Eyamin Sajid
02 October, 2019, 11:15 am
Last modified: 02 October, 2019, 11:28 am

Related News

  • BPC hunts for dollar to import fuel oil
  • BPC will sell cheap bulk LPG to private companies due to low bottling capacity
  • BPC cuts Jet fuel, furnace oil prices by Tk2 per litre 
  • Oil price hike also to fund BPC’s flats, office block
  • The government’s fuel price hike justifications ring hollow

Government's liquid gas project won’t affect private investors

An exclusive interview with Md Shamsur Rahman, chairman of Bangladesh Petroleum Corporation

Eyamin Sajid
02 October, 2019, 11:15 am
Last modified: 02 October, 2019, 11:28 am
 Md Shamsur Rahman. Photo: Rehman Asad
Md Shamsur Rahman. Photo: Rehman Asad

Md Shamsur Rahman, chairman of Bangladesh Petroleum Corporation (BPC) as well as the board of directors of Padma Oil Company Ltd, Jamuna Oil Company Ltd and Eastern Lubricants Blenders Limited, Bangladesh, recently talked to The Business Standard over different issues of the country's fuel sector.

He said the private investors had nothing to be worried about the BPC's proposed Liquefied Petroleum Gas (LPG) plant in Moheskhali with a capacity of 10 million tonnes, as the market of LPG was of 40 million tonnes.

Here is an abstract of his talk.

TBS: How is the BPC maintaining the demand and supply balance of fuel?  

We import both crude and refined oil. Currently, the country has a demand of 6 million tonnes of fuel annually. We can only refine around 1.4 million tonnes while the rest of the fuel are being imported as a refined product.
There is a three percent annual growth in demand due to various developmental work on roads, highways and infrastructure.
Considering this, we assess the demand and then import fuel based on the assessment.
Generally, for emergency support, we urge the suppliers to ensure 10 to 15 percent additional delivery apart from the amount mentioned in the contract.

TBS: Which fuel has more demand in the market? 

The demand for diesel is much higher than that of other fuels, as the component is being used in different sectors, including transportation and irrigation.
But due to the availability of electricity, the demand for diesel has been decreasing gradually. Now, three stock engines are running on battery and diesel-based irrigation pump is being replaced by solar and power run machines.

TBS: After 2016, the oil price has decreased several times in international market, but people of Bangladesh did not see any reflection of it here. Why is that?

The BPC gained some profits after the fall of oil price in global market in 2014 and recovered its previous losses. However, from 2017-2018, the oil price started to increase again. But, the government has not rescheduled the price in the local market though we are now counting losses in some items of fuel. For example, now, we are selling diesel at Tk 5, furnace at Tk11.43 and kerosene oil at Tk7.02, incurring losses.
However, the price adjustment is a government policy, because the price of oil is related to other important things.
 
TBS: The LPG is getting popularity day by day and the BPC has a plan to set up a plant in Moheskhali. What about the progress of the plant? 

We have got a plot in Moheskhali of Cox's Bazar, where Japan International Cooperation Agency (JICA) has been developing a seaport and other infrastructures for an economic zone.
Considering the country's LPG demand, we have decided to set-up a plant there for refining, bottling and distributing the gas. There will be a facility to refill the bottle from filling station.The project will cost $300 to $350 million. So, we are planning to set up the plant in a joint venture model. We have got a Letter of Intent (LOI) from six foreign companies, including some local ones.
Still, it is under analysis. If it comes into line, we will be able to import a bulk amount of LPG in big vessels.

TBS: If it comes into operation, will it affect the private sector?

The market size of the LPG is about 40 million tonnes and it will expand rapidly, because pipeline gas supply to residential sector is going to be phased out soon. So, 10 million tonnes from the government side is not a big deal. The private sector will not be affected.
 
TBS: What are the challenges the corporation faces?

In the last 40 years, we, as an organisation, kept the oil supply smooth across the country though it was the biggest challenge for us. The whole fuel energy sector relies on import. So, bringing it from abroad, then processing and distributing it across the country is a challenging task. However, fuel crisis has never hampered our transportation system.
Price fluctuation in the international market is another issue, as we are not self-sufficient in energy. Therefore, the cost of the finished product (refined oil) is very costly. So, improving refining capacity is another challenge. To meet up the challenge, we are installing the second unit of the Eastern Refinery in Chattogram, which will increase the refining capacity from 1.4 million tonnes to 3 million tonnes.
The third challenge is oil transportation. All of our imported oil lands at Chattogram. From there, we carry the oil to all parts of the country through water, rail, and highways, which is very risky and expensive.

TBS: BPC is the lone importer of oil. Why is the private sector not involved in this sector?

Maintaining the quality of the fuel is very crucial. Because, if the low-quality fuel is supplied to the consumers, the indirect effects will be very costly.
Keeping that in mind, as a government agency, we have been maintaining the quality very strictly.
So, there is no plan to open the sector to the private investors. 

Top News / Energy

Md Shamsur Rahman / BPC

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • VAT on locally-made mobile phones, fridges on cards
    VAT on locally-made mobile phones, fridges on cards
  • Wheat stock at 3-year low and that may not be good for rice
    Wheat stock at 3-year low and that may not be good for rice
  • Ousted Pakistani Prime Minister Imran Khan gestures as he travels on a vehicle to lead a protest march in Islamabad, Pakistan May 26, 2022. REUTERS/Akhtar Soomro
    Azadi March: Imran gives 6-day ultimatum to announce polls

MOST VIEWED

  • Kazi Shofiqul Azam. Illustration: TBS
    It is time to be cautious about foreign-funded projects
  • Illustration: TBS
    ‘High logistics cost weakens Bangladesh’s competitiveness’
  • Annabel Meurs. Illustration: TBS
    EU brands firm on human rights in supply chain: Expert
  • Photo: Rashedul Islam Ruman
    Boga Taleb: A new face from Coke Studio Bangla
  • Sketch: TBS
    'Food inflation is an unavoidable consequence of currency devaluation'
  • ‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’
    ‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

Related News

  • BPC hunts for dollar to import fuel oil
  • BPC will sell cheap bulk LPG to private companies due to low bottling capacity
  • BPC cuts Jet fuel, furnace oil prices by Tk2 per litre 
  • Oil price hike also to fund BPC’s flats, office block
  • The government’s fuel price hike justifications ring hollow

Features

Illustration: TBS

Should Belayets be allowed to return to school at 55?

47m | Pursuit
Impact Hub Dhaka is designed to cater to connectivity, offering lots of communal areas where you can chat over coffee, watch a webinar as a group or even host events. Photo: Courtesy

Inside Impact Hub: The surprising benefits of working in a co-working space

1h | Pursuit
Pacific Jeans uses sustainable technology in washing and finishing, and now has the facility to wash with zero water. Photo: Courtesy

How big dreams and smart investment made Pacific Jeans a denim exporting giant 

2h | Panorama
Psycure has received various awards for their extraordinary contributions to promoting Sustainable Development Goals. Photo: Courtesy

Psycure: Meet the organisation serving the underserved university students (and beyond) with mental healthcare 

1d | Panorama

More Videos from TBS

Why is Thanda Garam's juice so popular?

Why is Thanda Garam's juice so popular?

47m | Videos
Tea tales at TSC

Tea tales at TSC

2h | Videos
What journalism students want to know

What journalism students want to know

2h | Videos
Where the people have more weapons than military

Where the people have more weapons than military

13h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

3
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

4
Photo: Courtesy
Panorama

Misfit Technologies: A Singaporean startup rooted firmly in Bangladesh

5
Illustration: TBS
Banking

Let taka slide

6
Photo: Collected
Industry

Spanish recycled cotton producer opens new facility in Bangladesh

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab