Alternative Fuel

LPG flame

 

As the economy of Bangladesh developing and per capita energy usage increasing as well, markets for other types of fuel also developing. Which fuels may come to dominate the market depend on a number of factors. For example, if there is abundant geothermal, wind, solar or hydro-electric energy, an increasing level of access to very affordable electricity may shift consumption for some applications toward on-grid electric appliances. If industry demands natural gas for high-energy processes, natural gas suppliers may consider investment in import facilities and local reticulation infrastructure or Compressed Natural Gas (CNG) infrastructure.

Stakeholders, particularly Government, must be alert to false indicators about the progress of the LPG market. Indicators about its LPG market that might have suggested it had progressed successfully into the transitional stage:

  • Increased LPG consumption, particularly in urban areas.
  • Diversification of distribution modes.
  • Increased LPG sector capacity development. Example: Increased training activity throughout the LPG sector. Effective and dynamic national LPG association.
  • Distribution and retail diversification.
  • Increased supply chain stability.
  • Growing confidence in LPG.
  • Pressure on government regarding its enforcement role, resources and responsibilities. Indeed, pressure from industry and the LPG association was very high for increased enforcement.