TK, Seacom invest Tk1,350 crore in LPG
The company already invested Tk650 crore on its storage facilities in Mongla, Dhaka
Highlights
- The joint venture got approval as LPG operator
- Delta LPG has its own terminal, jetty
- Its cylinder manufacturing plant can make 3,000 LPG bottles daily
- Storage facilities' capacity: 6,000 tonnes
- Annual supply capacity: 2 lakh tonnes
Delta LPG Limited, a joint venture of TK Group and Seacom Group, on Wednesday got the Energy and Mineral Resource Division's go-ahead as an LPG operator.
The operator planned to invest Tk1,350 crore in liquefied petroleum gas (LPG) and already spent Tk650 crore on storage and cylinder making plants, company officials said.
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Also, the project plans to create 500 jobs.
However, Delta LPG has got the approval at a time when the existing investors are finding it difficult to stay afloat amid fierce competition.
Twenty-seven companies have LPG licenses now. Nineteen of them are active in the market, supplying around 1 million tonnes of cooking gas.
Of them, Bashundhara, Omera, Jamuna LPG Limited are the market leaders – holding 24%, 20% and 17% share of the total demand.
Delta LPG Managing Director Amirul Haque said, "The sector is super competitive. But we are trying to provide the best and fastest service."
"We have been in the market since January and producing LPG on a trial basis. But the pandemic delayed our commercial operation," Amirul Haque said.
Delta LPG is also planning to set up 500 autogas stations across the country, Amirul informed.
The company can now store 6,000 tonnes of LPG at its Mongla and Dhaka facilities. It also has a terminal with a ship berth and jetty in Mongla.
The operator has an LPG cylinder manufacturing plant in Mongla, too, with a capacity to make 3,000 cylinders daily.
However, Delta LPG is planning to set up another storage facility in Chattogaram to store around 12,000 tonnes of LPG at Tk700 crore, the company's plant manager Mohammad Shahnawaj said.
"We can bottle around 30,000 cylinders daily and have a capacity to supply 2 lakh tonnes of LPG annually," Shahnawaj added.
The operator now offers 12.5 kg, 15 kg, 33 kg and 45 kg LPG cylinders at the retail level.
