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Parami Energy to invest US$25m for LPG distribution

Parami Energy will accelerate the distribution of liquefied petroleum gas (LPG) next year, CEO U Pyi Wa Tun said yesterday.

He said in a press conference that starting from December 12, 150,000 Parami LPG cylinders will be distributed in the market and before April 2019, 50pc of the LPG cylinders will be distributed in Yangon Region. After April next year, it will be distributed across the country.

The capital involvement is currently K15 billion and another US$25 million will be invested over the next three years to build more factories.

Currently, LPG is being imported via Thailand’s border. Myanmar does not have the infrastructure needed to produce its own LPG.

About 70,000 tonnes of LPG is imported yearly from Thailand. Compared to 4 million tonnes per year consumption in Thailand, LPG consumption in Myanmar is still low, with less than 5pc of households. U Pyi Wa Tun attributed this to the lack of mass distribution in the local market.

Parami Energy plans to distribute it to about 150,000 5 kg and 12 kg LPG cylinders in the market this year. The company’s aim is to distribute up to about 2 million households in 2020, with LPG gas imported from the Middle East, Indonesia and Malaysia.

U Pyi Wa Tun added that Parami Energy is pushing for the market to be liberalised to permit the entry of foreign LPG players in the market to benefit consumers via market competition.

Parami Energy is one of the two firms permitted by the government to import and sell LPG in the country. It is currently importing LPG from Indonesia and Malaysia. The company last year won a K6.5 billion government tender to lease a jetty and storage facility at the Thanlyin refinery in Yangon Region.

Currently, much of the imported LPG is now used for commercial purposes, such as in hotels, restaurants, tea shops and factories. Parami Energy is aiming to bring LPG into Myanmar households to reduce the use of electricity for cooking.

SOURCE: MYANMAR TIMES

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