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8TH ISSUE

Industry awareness necessary for safe, environment-friendly LPG: Omera CEO

Industry awareness necessary for safe, environment-friendly LPG: Omera CEO Uninterrupted supply of natural gas at the proper pressure is essential as a fuel for the ceramic industry. However, currently, most of the industries are not getting it timely and properly. So, the use of alternative gas is increasing. And in continuity of this, the use of Liquid Petroleum Gas (LPG) has started in the ceramic industry, though it is a bit expensive. According to Petrobangla currently the natural gas demand in the country is about 4000 million (MMCFD). Supply is 2700-2800 mmcfd. Of this, 700 to 800 mmcfd is being supplied from imported Liquid Natural Gas (LNG). There is a shortfall between demand and supply about 1200-1300 mmcfd. A large ceramic company needs at least 900 tonnes LPG a month, if it is used there. In all, around 65,000 tonnes LPG is needed in 70 ceramic companies of the country every month, if they continue production in their factories based on LPG only. The demand for increasing gradually in both ceramic and apparel industry following environment issues and energy shortage. Omera LPG now the market leader In eight years of operation, Omera LPG has become the market leader with the highest market share in the country’s LPG sector. It is known for high safety standards, consistent LPG supply round the year and excellent customer service (Hotline 16797). Omera imports LPG from the Middle East countries including Saudi Arabia and Qatar as well as the USA, and shipping it to Kutubdia of Cox’s Bazar by very large gas carriers (VLGC). Then, the LPG is transferred to smaller LPG ships (coasters) by ship-to-ship transfer. The coaster vessels make onward delivery of LPG to their plants in Chattogram and Mongla. They also sell LPG from the VLGC to other operators. Omera stores and bottles the LPG in its five plants of different locations in Bangladesh. The gas is bottled in 5kg, 12kg, 25kg, 35kg and 45kg gas cylinders. After fulfilling national demand, it is exporting the LPG to seven north-east states of India. Its sister concern, Omera Cylinders limited, manufactures LPG cylinder factory in Habiganj district. It exports to African countries. Omera Cylinders Limited is manutacturing new cylinders and retesting/refurbishing cylinders of third party LPG operators Bangladesh. Now the total import of LPG for Bangladesh is approximately 1,20,000 tonnes per month. Omera sells around 27,000 tonnes a month through retail, industrial, auto gas and export. Its group also sells LPG to other operators from the VLGC. So, in total its LPG supply to Bangladesh stands at 45,000 tonnes a month. With more than 35,000 retailers and over 5 million cylinders in residents across Bangladesh, Omera aims to cater the demand of environment-friendly LPG for all segments. LPG’s demand will double by 2030. In 2022, Omera noticed that industries were increasingly seeking energy to heat their boilers and furnaces. Then, it started a new division named ‘Omera Priority’ which brings the most secure and reliable LPG solution for an industrial heating needs. Tanzeem Chowdhury claimed, LPG price is now lower than diesel’s as the government has withdrawn subsidy on the fuel oil. Besides, the industrialists complain about not getting pipe gas properly. So they lean to use LPG. He said that LPGS price is somewhat high compared to natural gas as the government i providing subsidy on pipe gas. But now LPG price is lower than diesel/furnace oil as the government has withdrawn subsidy on diesel. The price of LPG Is Tk 107- per kg while diesel Tk 109 each litre. Besides, the price of LNG is USS 12.70/MMBTU; CNG Tk 43/cubic metre (cbm); NG (Industrial) Tk 30/cbm; NG (Captive Power) Tk 30/cbm, and Tk 130/L. If the government withdraws subsidy from pipe gas, the price will be almost same between LPG and pipe gas. However, the government should create awareness among industrialists to use safe and the environment-friendly energy. LPG is much safer than pipe gas Considering this, Omera has launched a new solution called ‘SNG. When natural pipe gas pressure drops in ceramic industry, its LPG will enter into heater through software. There is absolutely no downtime/ changeover time, so the heater will not be shut down. Now they are getting good response from ceramic manufacturers. Already they have provided the services at some large ceramic companies who are happy getting it. LPG demand is also rising in this sector. If all the companies take services from Omera, there won’t remain any gas crisis and they have that capacity to supply. LPG is safer than pipe gas line. Omera has over 5 million cylinders in residents. Very few accidents occurred in the LPG in industry till now; rather, pipe gas caused accident several times. The company conducts safety audit yearly. Clear policy is crucial for investment Mr. Tanzeem Chowdhury said, “The demand for LPG is increasing gradually, thanks to rising population and changing people’s lifestyle. Now our sale is mostly in cities but the demand is going up in village too. We want to supply our LPG secure and easily, utilising latest technology to boost market share. As we are financially strong so we have no problem of L/C opening now. But our problems are unclear policy and unadjusted price. A clear policy is needed, as to who will get natural gas (NG) and who will not. Unclear policy makes hurdles to investment. Policy is crucial for local and foreign direct investment as well.” He added that Bangladesh Energy Regulatory Commission (BERC) fixed bottled gas price (Local portion) in 2021. “But it should be adjusted with the current inflation. Some foreign companies are showing interest to invest in the sector as LPG is promising in Bangladesh.”

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