A Bangladeshi company has sought permission from government to start re-export of liquefied petroleum gas (LPG) to Nepal that has been experiencing severe shortage of fuel and other essentials due to blockade of the supply route along its border with India by a small ethnic group of Indian origin, officials said.
The authorities concerned are now examining the plea taking into consideration all the relevant aspects, a senior official at the ministry of commerce told the FE.
Omera Petroleum Ltd (OPL), a sister concern of MJL Bangladesh Ltd, which is partly owned by the government, sought the permission to re-export LPG in other SAARC countries as well.
"We have been told that the government is keen to help Nepal. So, we hope that the private sector will be allowed to help Nepal as well. Our application is moving forward and hopefully will get permission soon," OPL's chief executive officer Ishtiaq Ahmed told the FE on Wednesday.
He said his company's annual LPG supply capacity now stands at 100,000 tonnes. The company has one LPG import terminal, three satellite LPG filling plants and a self-propelled LPG carrying barge.
Mr Ahmed said his company has already signed an agreement with Nepal Oil Corporation, the state-owned trading company entrusted to deal with the import, transportation, storage and distribution of various petroleum products in the country.
"We will supply LPG from our terminal in Mongla which the Nepalese importers will carry by road. To this effect they will send empty LPG road tanker convoys into Bangladesh through Banglabandha land port," he said.
Mr Ahmed said his company saw the possibility of exporting LPG to Nepal following the signing of the sub-regional motor vehicle agreement among the BBIN (Bangladesh, Bhutan, India and Nepal) countries.
He said the OPL has also shown interest to become a major LPG supplier to Indian Oil Corporation targeting to export the item to land-locked North Eastern States of India.
However, he said, the main focus of his company is domestic market where its present stake is around 10 per cent which is expanding fast. Bangladesh's current annual demand of LPG is around 110,000 tonnes.
In the letter to Energy Division Mr Ahmed said Nepal has decided to expand its LPG sourcing base beyond India and China and is looking for long-term LPG partners in order to mitigate its cooking fuel shortages.
He said his company has infrastructure in place to double its LPG supply capacity should there be a surge in domestic LPG demand.
He said his company can export up to 50,000 tonnes of LPG to Nepal by using its existing infrastructure.
Asked how LPG will be transported to Nepal through the India, Mr Ahmed said in this case Indian vehicles will be used to carry the item.
Nepal's annual LPG demand was around 207,038 tonnes in fiscal year (FY) 2012-13 with 14 per cent surge each year. Its yearly LPG import bill was 20 billion rupees then.
In late September, Indian Oil Corporation stopped fuel supply to Nepal following state-level dispute over new constitution of the Himalayan Kingdom. Nepal is highly dependent on India for fuel and other essential goods supply.
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