With the provision for import and export, the government has enacted a policy for establishing Liquefied Petroleum Gas (LPG) bottling plant under both public and private initiative.
“Before this policy, there was only provision for LPG import. With this policy, the import oriented LPG bottling plant establishment system of 2011 is abolished,” an official of Energy and Mineral Resources Division told energynewsbd.com on Saturday.
The recently enacted policy by Energy and Mineral Resources Division said that no person or organisation could import, export, establish, bottle, distribute or market any LPG without the permission of the government.
Considering the limited energy resources and the continuing development of the country, the policy termed LPG as one of the most promising energy sources.
Under the circumstances, the government in principle has taken the decision to establish the LPG bottling plant to increase the usage of LPG in household, automobile, small industries and as the raw materials for chemical and processing industries.
The government also forms the LPG bottling policy-2016 to safeguard the dwindling energy resources of the country as well as to ensure competitive market scenario.
The government can cancel the license of any LPG plant or company by following the rules of the act if it violates the rules and regulation.
The organisations interested to establish plant must take permissions and license from Department of Environment, Department of Explosives, Fire Service and Civil Defense, District administration, Local Government, Board of Investment (BoI), Bangladesh Standard and Testing Institution (BSTI), Bangladesh Energy Regulatory Commission (BERC) and the concerned ministries and departments of the government.
After getting the license, the organisation has to make a contract with state-owned Bangladesh Petroleum Corporation (BPC) after taking the permission from the government to conduct the operation of the bottling plant.
The organisation has also to take the approval of the Ministry of Commerce aside from taking the approval of Energy and Mineral Resources Division.
If the government wants, it can provide with the permission to certain company to market LPG in certain parts of the country or in the whole areas of Bangladesh.
No company will be able to market and distribute their products without their own branded cylinder.
However, if several organisations have mutual agreements among them, then they can go for cross filling after taking permission from the license giving authority.
To get the permission for establishing LPG plant, the concerned organisation must establish a laboratory comprised of modern equipments to conduct different testing and experiments on the external and internal examinations of the LPG cylinder.
Besides, the energy and mineral resources division, BPC, BSTI and any authority powered by the energy and mineral resources division could check the quality if the LPG.
The policy also said that the no LPG bottling plant could be established in residential and populous region.
“There is no real monitoring on any safety or operational issues by government departments like explosives and others in this sector – as a result we see so many ‘illegal refilling station’ happening around us,” LAUGFS Gas Bangladesh Ltd Chief Executive Officer and Director Mohammed Saidul Islam told energynewsbd.com.
“Government should have developed their own institutions like Explosives Dept, BERC etc to facilitate growth in a safe manner in this sector. Instead the investor needs similar sort of approval from many of these government departments,” he said.
“Investors need one point approval for LPG bottling plant from all government departments, say in 60 days, - not separately from all departments,” he also said.
“For engraving or embossing company name on valves, the investors need some time, there are many cylinders in the pipeline. There is no separate guideline for ‘Satellite LPG filling plant’ for the importers,” he added.