Realtors eye LPG amid piped gas shortage
Wednesday, 20 April 2011
Jubair Hasan
Liquefied Petroleum Gas (LPG) has come to the rescue of the country's realtors after the government stopped new piped gas connections for cooking to reduce pressure on natural gas use. The alternative thinking of the housing and real estate companies comes as they could not handover thousands of ready-flats to the clients. Importers said real estate firms are interested to use LPG, which will enable them handover thousands of flats to the clients. Realtors have failed to transfer flats to their customers over the last 18 months for the embargo on piped gas connections. "LPG will help redress the crisis. Several companies are negotiating with us to avail the cylinder gas facility," Md Saidul Islam, a general manager with Kleenheat Gas Limited, a multinational energy group. "We've also sent quotations to the interested realtors," he said, adding that the negotiating companies were ANZ Properties, Urban Design and Development and Baitul Aman. A senior official of Bashundhara LP Gas Ltd told the FE that many housing companies have signed agreement with LPG firms before the construction of apartments. He said his company is also getting 'good response' from housing companies. He added many flat owners are also seeking their services in the capital. Mohiuddin Bhuiyan, a director of development and logistic wing of ANZ Properties, said they have been considering alternative sources to tackle the crisis. "Yes, we have been communicating with some LPG firms," he said. He noted they have installed some cylinder gas facilities in some of their projects. "LPG is not available everywhere. That is the main problem of the service and costs are also high," he told the FE. Mr Bhuiyan said the realtors will have to depend increasingly on the LPG firms in the coming days if the government fails to ensure piped gas connections for domestic use. "Housing companies are really worried about their business as many ready-apartments remain unsold." Real Estate and Housing Association of Bangladesh (REHAB) has estimated that nearly 3000 ready-flats have remained undelivered in the city due to current power and gas shortage, putting the industry in peril. "This uncertainty has prompted us to seek alternative source of gas," a REHAB leader said, adding that they also knocked the doors of renewable energy providers to get rid of electricity shortage, which was another hurdle for the sector. REHAB president Nasrul Hamid said they spoke to energy officials over the matter. "Hopefully, we will get positive response in two months," he said. He said the government should promote LPG by waiving duty on the import of raw materials and capital machinery. "Those who are planning to build multi-storied apartments in the country should consider the bottled gas facility," the REHAB chief said. A number of private firms are now engaged in marketing of LPG in Bangladesh including Totalgaz, Bashundhara, Kleenheat and Jamuna Spacetech. Currently the country consumes around 100,000 tonnes of LPG every year, mostly by urbanites in district towns and light engineering workshops. Private firms can supply around 80 per cent of the demand while the state-owned LPG producer provides the rest.
Liquefied Petroleum Gas (LPG) has come to the rescue of the country's realtors after the government stopped new piped gas connections for cooking to reduce pressure on natural gas use. The alternative thinking of the housing and real estate companies comes as they could not handover thousands of ready-flats to the clients. Importers said real estate firms are interested to use LPG, which will enable them handover thousands of flats to the clients. Realtors have failed to transfer flats to their customers over the last 18 months for the embargo on piped gas connections. "LPG will help redress the crisis. Several companies are negotiating with us to avail the cylinder gas facility," Md Saidul Islam, a general manager with Kleenheat Gas Limited, a multinational energy group. "We've also sent quotations to the interested realtors," he said, adding that the negotiating companies were ANZ Properties, Urban Design and Development and Baitul Aman. A senior official of Bashundhara LP Gas Ltd told the FE that many housing companies have signed agreement with LPG firms before the construction of apartments. He said his company is also getting 'good response' from housing companies. He added many flat owners are also seeking their services in the capital. Mohiuddin Bhuiyan, a director of development and logistic wing of ANZ Properties, said they have been considering alternative sources to tackle the crisis. "Yes, we have been communicating with some LPG firms," he said. He noted they have installed some cylinder gas facilities in some of their projects. "LPG is not available everywhere. That is the main problem of the service and costs are also high," he told the FE. Mr Bhuiyan said the realtors will have to depend increasingly on the LPG firms in the coming days if the government fails to ensure piped gas connections for domestic use. "Housing companies are really worried about their business as many ready-apartments remain unsold." Real Estate and Housing Association of Bangladesh (REHAB) has estimated that nearly 3000 ready-flats have remained undelivered in the city due to current power and gas shortage, putting the industry in peril. "This uncertainty has prompted us to seek alternative source of gas," a REHAB leader said, adding that they also knocked the doors of renewable energy providers to get rid of electricity shortage, which was another hurdle for the sector. REHAB president Nasrul Hamid said they spoke to energy officials over the matter. "Hopefully, we will get positive response in two months," he said. He said the government should promote LPG by waiving duty on the import of raw materials and capital machinery. "Those who are planning to build multi-storied apartments in the country should consider the bottled gas facility," the REHAB chief said. A number of private firms are now engaged in marketing of LPG in Bangladesh including Totalgaz, Bashundhara, Kleenheat and Jamuna Spacetech. Currently the country consumes around 100,000 tonnes of LPG every year, mostly by urbanites in district towns and light engineering workshops. Private firms can supply around 80 per cent of the demand while the state-owned LPG producer provides the rest.