LPG or LP Gas Company in Bangladesh: A Peek into the Industry

Bangladesh has long relied on pipeline-based gas for domestic consumption. However, the pipeline-based gas system has proven inadequate to fulfill the rising demand over the years.

The shortage in supply has led people to adopt cylindered LPG (Liquefied Petroleum Gas) as an effective solution. This rise in demand has shaped up the LPG industry in Bangladesh over the last two decades.

To cater to the growing demand, LP Gas companies in Bangladesh have emerged a considerable number. Around 30 companies are operating in the LPG market of the country with a challenge to fulfill the need.

In this article, we will provide you an overall picture of the LPG industry first. Later on, we will talk about the companies and give you a list of the top 10 LP Gas companies in Bangladesh.

LPG Industry In Bangladesh

The LPG sector in Bangladesh is growing at a tremendous pace. Despite that, it is still an import-oriented industry. Almost 95% of the total supply of LPG in Bangladesh is imported from foreign soil.

The total supply for LPG was also 1 million last year. Currently, there is no shortage in the market, rather we are facing an oversupply crisis.

Being largely import-oriented, the industry is considerably tough to control. Frequent market instability occurs due to high international prices.

Almost all companies have plant facilities for import, bottling, and distribution for LPG. However, LPG can’t be produced in Bangladesh so enormously.
As a consequence, the market has to depend on imported LPG. However, if we talk about cylinder manufacturing here in Bangladesh, few companies have that facility.

Market Share

Currently, Bashundhara, Omera, Petromax, Jamuna, Total, LAUGFS are the most sought-after brands on the market. With the highest market cap, Bashundhara LP Gas Ltd. is the leading LPG gas company in Bangladesh.

Petromax is rapidly catching up to the competition despite being a new player. They have already created a great impact on the liquefied petroleum gas market.

International companies such as LAUGFS and Totalgaz are also enjoying a portion of the market. The rest of the market is shared among a mix of old and new companies. They constitute a large portion of the existing industry.

List of LP Gas Company In Bangladesh

Around 30 big and small LPG companies are operating within the boundary of Bangladesh. As the Government of Bangladesh declared LPG as the primary fuel, the number is forecasted to grow in future years.

Later in this article, we will discuss how the LPG industry is expected to shape up further. The government encouraging market entry is supposed to make the list of LPG companies in Bangladesh lengthier than ever.

Due to the vast array of companies bottling LPG right now, a consolidated list is quite difficult to make. However, we have tried to put together a list of major companies that occupy the current LPG industry in Bangladesh.

There are some small LPG bottling companies too. However, their share in the market is insignificant due to their lower capacity and less brand awareness.

The Top LP Gas Company in Bangladesh

Picking up an LPG cylinder from your local retailer is a very straightforward job. However, when it comes to trust and proper maintenance of the cylinders, you may have to choose.

Depending on the trustworthiness, maintenance quality, overall brand value, LPG companies can be categorized. But it is tough for a consumer to judge just by looking at a cylinder.

Taking one for the team, we have tried to put together the list of the top-10 LPG gas companies in Bangladesh. So, without any further ado, let’s explore.

Petromax LPG Ltd.

Despite being a fairly new LPG brand, Petromax has proven its worth in the industry. A subsidiary of Youth Group, it has a total storage capacity of 6500 metric tons and a bottling capacity of 10 million cylinders.

Petromax differentiates itself from the rest of the market through excellent quality and ease of use. It supplies consistent heat as it is made from a perfect mixture of propane and butane.

Safety is Petromax’s utmost priority. It has a fully automated, high-capacity filling facility that ensures accurate weight. It imports valves from Thailand and other raw materials from Japan.

To ensure further safety, Petromax carefully designs cylinder shells. Weight and thickness are taken into account while designing the cylinders. You can rely on Petromax with your eyes closed.

Petromax comes in two different sizes: 12 kg and 35 kg. The sizes are available in both 20 mm and 22 mm valves.

They also have industry pioneering home delivery service, customer service, reticulated cylinder bank, and Autogas filling station solutions.

Bashundhara LP Gas Ltd.

Bashundhara LP Gas Ltd. is the LPG importer, cylinder manufacturer, distributor, and marketing company in Bangladesh.
They offer LP gas in three different cylinder sizes: 12 kg, 30 kg, and 45 kg. So, their SKU has more diversity. They got different offers for industrial use: an easy solution system, a reticulated system, and a bulk system.

Bashundhara LPG cylinders are designed and made following American Standard Specifications. They produce complete leak-proof cylinders through an automated MIG Welding system to ensure safety.

Omera Petroleum Limited

Considering the growing market opportunities, Omera Petroleum Limited launched their LPG lineup Omera LP Gas. Since the beginning, Omera has been committed to delivering convenience, availability, functionality, and safety.

OPL has in total four storage and bottling facilities. All their facilities are curated following European standards. They don’t compromise with quality and safety standards.

It has one of the largest LP gas bottling and storage complexes in Bangladesh which gives it a competitive advantage.

Omera markets its LPG in four different SKUs: 5.5 kg, 12 kg, 35 kg, and 45 kg. 5.5 kg and 12 kg bottles are targeted towards households, whereas 35 kg and 45 kg cylinders are focused on commercial buyers.

Jamuna Spacetech Joint Venture Limited (JSJVL)

Jamuna Spacetech Joint Venture Limited (JSJVL) started its operation in Bangladesh in 2020. Their LPG brand name is Jamuna Gas®. It is the first Govt. approved private LPG plant in Bangladesh.

Jamuna Gas has in total two plants, in Mongla and Bogra. Their plants are positioned among the most efficient plants in Bangladesh.

Jamuna LPG maintains good quality standards and produces high-quality LPG for consumer and industrial use. Their cylindered LPG comes in four sizes: 5.5 kg, 12 kg, 35 kg, and 45 kg.

Jamuna Gas is a very well-known brand, thanks to its long presence in the LPG market.

BM Energy Bangladesh Ltd.

Incorporated in 2012, BM Energy Bangladesh Ltd. is a joint venture between Netherlands and Bangladesh. The company sells cylindered liquefied petroleum gas under the brand name BM LP Gas.

The company imports their cylinder ensuring international standards. Their bottling plant has state-of-art technology that can diagnose leaks and tires. So, it is completely reliable in terms of quality.

By using high-quality valves and a perfect weight measurement mechanism, they ensure proper heat and weight. In terms of management certifications, they are ISO 9001:2015, 14001, and 45001 certified.

BM LP Gas comes in four different cylinder sizes: 12 kg, 20 kg, 33/35 kg, and 45 kg.

LAUGFS Gas (Bangladesh) Ltd.

LAUGFS Gas Bangladesh is an international company operating its business in Bangladesh. It is a very well-known brand due to its international affiliations and top-notch quality maintenance.

Compared to the upper five in this list, LAUGFS Gas has a relatively small bottling and storage facility. It has a storage capacity of only 2000 metric tons. However, they are working on an additional 3000 metric tons storage facility.

The products of LAUGFS Gas Bangladesh come in only two sizes: 12 kg (consumer use) and 45 kg (commercial use). They are also one of the pioneer brands of autogas in Bangladesh.

Totalgaz Bangladesh

With activities in more than 130 countries, Total is the world’s fourth-largest oil and gas company. In Bangladesh, they are registered under the name Totalgaz Bangladesh and their LPG brand name is Total Gas.

Totalgaz has a storage capacity of 2500 metric tons which is not a lot compared to the rest. But its international recognition and outstanding quality management have allowed me to be one of the top market players.

The bottling plant of Totalgaz is occupied with French automated machines which are considered one of the best. Before dispatching the cylinders in the market, they are checked thoroughly to make sure there are no imperfections.

Totalgaz is a believer in strict safety management and tries to provide their customers the best treatment possible. They sell LPG cylinders in three sizes: 12 kg, 15 kg, and 33 kg.

Beximco LPG Unit-1 Ltd.

With its revolutionary smart cylinders, Beximco LPG is slowly taking over the market. However, the only constraint so far on its way to triumph seems to be its low storage capacity.

Currently, Beximco LPG has a storage unit of 3000 metric tons of LPG. Using this much storage, they have been able to distribute around 1 lac metric tons LPG per year. However, they are constructing additional storage of 3000 MT.

The most striking thing about Beximco that sets it apart is the smart cylinders. Only half the weight of a regular steel cylinder, it is very convenient. Moreover, the gas level can be observed from the outside which is a value addition.

Smart cylinders also don’t rust and have proven to be entirely non-explosive. Beximco offers LPG cylinders in two different weight classes: 12 kg and 22 kg.

Orion Gas Ltd.

A subsidiary of Orion Group, Orion Gas Ltd. has been around for five years. In their run, they have managed to secure a place in the LPG industry for them.

Orion Gas Ltd. has two 1500 metric tons capacity spherical storage units, making their total storage capacity 3000 MT. Their filling and bottling facility is fully automated and follows European standards.

The cylinders they use are carefully checked every time they come from refilling. This ensures the safety of the cylinders and provides consumers the trust and security that they look for.

With options of 20 mm and 22 mm valves, Orion distributes their LPG in three different cylinder sizes: 12 kg, 35 kg, and 45 kg.

Resource: LP Gas Cylinder Price in Bangladesh

Future of LP Gas Company In Bangladesh

Liquefied Petroleum Gas (LPG) is regarded as a safe and cost-effective alternative to natural gas. With the emergence of more houses and industries over time, it is very likely for LPG demand to continue rising.

Due to the shortage of pipeline-supplied natural gas countrywide, LPG is becoming more popular in households. Cylinder LP gas has become more accessible nowadays as the supply is constantly increasing.

Apart from households, LPG demand is expanding in the vehicle sector as well. That is a whole new market to explore for the operational LPG bottling companies in the market.

Every day new investment and demand prospects are opening up in the LPG market. As the government is encouraging new entry through incentivizing, the LPG market should see a rise in both supply and competition.

This increasing supply in the market should stabilize the current market situation. Price hikes will get less frequent which is great news for the consumers.

New entrants are likely to tap into the expanding rural demand. Better accessibility to LPG will highly benefit the rural mass. Many industries are demonstrating the need of switching from conventional pipeline gas to LPG too. 

Conclusion

Given Bangladesh’s serious natural gas shortage, LPG appears to be a viable and long-term solution. However, the prospects for the LP gas company in Bangladesh are still largely untapped.

Consumers will be the biggest beneficiary as an increasing number of companies are showing their interest. Companies such as Petromax are taking the industry by storm.

If you want to switch to LPG, you may consider the top 10 list that we have provided above. We will recommend you to pick Petromax particularly as it is very secure and trustworthy. Best Wishes!



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