Bangladesh – Use of Autogas a Significant Growth Option for the Future
By Klaus Gohra, Manager, Supply & Offshore Operations, Kleenheat Gas
Autogas was accepted by the government of Bangladesh as an alternative fuel for motor vehicles from 2001.
Kleenheat Gas was instrumental in advising the Government of Bangladesh on acceptable and sustainable standards for the autogas industry throughout 2001-2005 and as a result the first autogas refueling station was commissioned in 2005.
Initially, the response to autogas has been slow but with continuous effort and dedication from the local team, Kleenheat has slowly expanded its autogas refueling network throughout the rural urban centres in areas where there is limited or no access to CNG.
Kleenheat has converted over 1000 vehicles to date and it estimates there is a total of up to 3,000 on the road currently.
Bangladesh is currently facing a natural gas supply crisis due to a rapidly depleting supply base and a combination of inadequate upstream/downstream supply infrastructure and government planning.
This has created a change in the mindset and the demand for autogas is increasing daily. Government support for CNG and the associated subsidized pricing structure makes CNG a compelling option to those located along the CNG distribution network. However, with a planned increase in the CNG pricing structure post July 2010, autogas will become a much more attractive alternative and with additional planned autogas sites being rolled out by Kleenheat Gas during the year annual volumes are forecast to grow in excess of 50% during 2010.
With the motor vehicle market in excess of 1 million vehicles and a positve growth rate in motor vehicle ownership trends, the use of autogas as an alternative fuel will be a significant growth option for the Bangladesh industry which has historically struggled to develop due to the availability of subsidized alternative fuels, bad practice and the inexperience of local operators combined with a lack of government support. Kleenheat Gas has ensured that it is positioned to capture this growth opportunity in the future.
Wesfarmers Kleenheat Gas Pty. Ltd. owns and operates an LPG import terminal located at Mongla Port, in the south west of Bangladesh. The operation is a J.V. with the ELPIJI Group from Malaysia and Kleenheat Gas. Kleenheat began importing and marketing LPG throughout Bangladesh in 2001.
For more information on autogas in Bangladesh, please contact Klaus Gohra, kpgohra@kleenheat.com.au and see website http://www.kleenheat.com.au/gas/about-us/bangladesh.aspx
