Bangladesh's LPG Policy At A Crossroads

Bangladesh's reliance on liquefied petroleum gas (LPG) has grown rapidly in recent years as natural gas shortages intensify. Yet the policies guiding this sector remain fragmented and often misaligned with market realities. While the government is preparing a consolidated LPG policy to provide clarity, industry insiders stress that private operators, responsible for nearly 99% of supply, must play a central role in shaping it. From infrastructure gaps to safety lapses, the LPG industry faces mounting challenges that demand urgent policy attention and regulatory reforms.

- Mollah Amzad Hossain

M. Muntasir Alam, Country Manager for MJL (S) PTE. Ltd, sheds light on the state of LPG policies, safety issues, and the way forward in an interview with Energy & Power Editor Mollah Amzad Hossain.

What is the status of LPG policies in Bangladesh, and how can they be improved?

The various policies related to LPG are now being combined into a comprehensive framework aimed at closing gaps and offering greater clarity. This effort is being led by government policymakers. However, it would be more effective if the private sector had greater involvement in drafting such a policy, since nearly 99% of Bangladesh's LPG supply comes from private licensees.

Developing infrastructure to import and distribute LPG to the last mile also requires joint efforts. Freight remains the most critical cost component in importing LPG. Ocean freight could be reduced significantly if imports were made in larger consignments, via VLGC carriers and refrigerated cargo, directly into importers' jetties. For this to happen, the river draft at Mongla and Chattogram must be increased. Similarly, improved expressways and larger highways would allow safer, faster LPG distribution through bulk tankers and trucks carrying packed cylinders.

Globally, the availability of onshore refrigerated LPG terminals, along with sufficient draft for VLGCs, is key to building a cost-effective LPG supply chain. Bangladesh is yet to build and commission such a terminal.

The country's annual LPG consumption is now about 1.8 million tonnes. But alongside this growth, accidents related to LPG are also increasing. Are operators fulfilling their responsibilities properly? What measures should be taken to prevent these accidents?