I, Country Manager for Kleenheat Gas, Bangladesh, stated that the current Bangladesh LPG industry is not more than 80,000 metric tonnes per annum with Petrobangla producing up to 25,000 metric tonnes at its 2 plants.

The balance is imported by 4 private operators who have invested in excess of US$50 million, developing LPG import and bottling facilities since 1999, when the government of Bangladesh announced it would encourage private operators into the LPG industry.

The combined import and bottling capacity of these 4 facilities is upwards of 200,000 metric tonnes per annum when fully utilised.

The 4 LPG facilities, located at Mongla Port and Chittagong, are clearly under utilised and facing huge financial pressures due to the lack of market expansion. Original estimates of the size of the market have not materialised due to a number of factors and as in most countries where LPG use has flourished a joint and pro-active approach by both the government and the private operators is necessary to stimulate growth and develop a sustainable LPG industry.

I disputed recent claims that the expansion of the LPG industry will put a strain on foreign currency reserves, stating that the import cost of LPG is considered minimal when compared to the huge and increasing level of subsidies currently being funded by the government on oil based alternatives, when in fact it would help reduce subsidy debt, increase government revenue in the form of VAT and import duties as well as create opportunities for a large number of small business people in Bangladesh.

LPG offered users a portable, economical, efficient and environment friendly alternative to more traditional fuels in locations where natural gas was not available and would continue to grow in popularity throughout the country as it has globally with the government's support.