Beximco to build 500 AutoGas filling stations in Bangladesh
The largest and oldest conglomerate in Bangladesh, Beximco Group received a green signal from the government for the establishment of 500 AutoGas filling stations and 25 workshops in January.
- (1888PressRelease) April 24, 2018 - The chief reason behind the government’s approval for the project remains the fact that Bangladesh’s natural gas resources are increasingly waning. By replacing CNG with LPG, the country can make great savings not just in terms of money, but also in terms of environmental conservation, since AutoGas is a cost effective, eco-friendly fuel. For the uninitiated, AutoGas is the common name for liquefied petroleum gas (LPG) which is otherwise useful fuel for the local populace and other fuel needs. Beximco Petroleum Ltd., a sister concern of Beximco Group, had received a letter in this regard on January 4, 2018 from the Energy and Mineral Resources Division. According to the letter, the energy firm will have to submit a formal application to the division for its final approval, after it fulfils the conditions set for the primary approval within two years.
The letter also stated that after receiving clearance from the necessary departments of environment, explosives, energy regulation, and standards & testing, Beximco Petroleum Ltd will also have to sign an agreement with Bangladesh Petroleum Corporation to establish and run LPG operators.
Other conditions mentioned in the contract include complying with the LPG Operational Licensing Policy (2017) and LPG Bottling Plant Policy (2016), building a 5,000-ton reserve tank, setting up LPG plants away from residential and densely populated areas to safeguard public security, and to make sure that the gas is transported in a safe manner by road tankers and vessels.
According to Akramuzzaman, Deputy Secretary to Energy and Mineral Resources Division, country’s renowned businessmen Salman F Rahman owned company was initially granted a permission to establish 500 AutoGas filling stations. However, the company needs to fulfil all the conditions presented by Energy and Mineral Resources Division in order to obtain the license to run LPG business.
Moreover, the government has left the pricing issue of autogas to create a competitive market in the nation, thus enabling the consumers to get fuel at reasonable prices. Although critical to the market, the decision would further the development in the energy sector. The government of Bangladesh is yet to decide the pricing scheme for the new fuel. However, it is expected that a tentative pricing scheme will be rolled out soon, much to the benefit of the nation’s population.
The Beximco Group’s work and decision is in line with the government’s decision to build the energy resources for the power hungry nation. Recently, the government also expressed its willingness to purchase solar power from India. Initiatives from private players and government’s efforts in the sector would help regulate the energy economy of the country and improve the state of energy infrastructure in the years to come. Country’s leading business institution Beximco Group has a vital role to play here.
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