August 9, 2026
Two companies under Bangladesh’s Bashundhara Group have independently applied for government approval to import liquefied petroleum gas (LPG)
Bashundhara Oil and Gas Company Limited (BOGCL) has applied to the Ministry of Power, Energy and Mineral Resources for permission to import LPG and LNG directly under its own management.
A separate application by Bashundhara Multi Trading Limited seeks approval to import LPG, mainly to meet industrial demand and address supply disruptions.
The applications come as Bangladesh faces pressure on its domestic natural gas supply and increasingly relies on imported fuels to meet demand from power plants, industries, households and transport.
BOGCL, in its application, said greater private-sector participation in fuel imports would strengthen energy security, improve supply reliability and help stabilise prices.
The company said it already had the infrastructure, operational experience and international supplier relationships required to undertake large-scale fuel imports.
According to the application, BOGCL has government approval to produce refined petroleum products including naphtha, diesel, furnace oil and bitumen. Its refinery has an annual crude-oil refining capacity of 2.21 million tonnes, the company said.
BOGCL said it had spent the past four years importing fuel oil from several countries and had developed commercial relationships with suppliers of fuel oil, LPG and LNG.
It said those relationships, combined with its storage, transportation and marketing infrastructure, would enable it to establish a reliable import and distribution network once approval was granted.
Energy security
BOGCL framed its request partly around national energy security, citing geopolitical uncertainty and pressure on Bangladesh’s foreign-exchange reserves.
“Due to the international geopolitical environment, the country’s foreign exchange savings are very necessary,” the company said in its proposal.
Allowing experienced private operators to import fuel, it added, could strengthen the country’s energy security.
BOGCL also said Bangladesh’s LPG market was heavily dependent on imports, estimating that more than 98% of LPG consumed in the country was imported.
The company cited industry projections that domestic LPG demand could rise from around 1.4 million tonnes to 3 million tonnes by 2030.
It said demand had increased partly because the government stopped issuing new household natural gas connections, prompting consumers and businesses to shift towards LPG.
BOGCL said imported LPG could also help serve areas where piped natural gas was unavailable.
“It has not been possible to ensure 100 percent gas in most regions of the country,” the proposal said, arguing that an expanded LPG supply chain could help address the gap.
The company also said greater competition among importers could help expand the market and control prices.
BOGCL asked the government to allow it to import LPG and LNG under its own management and described the move as a contribution to the country’s development.
Separate LPG request
Bashundhara Multi Trading submitted its LPG import application on April 28, 2026.
Its proposal focused more narrowly on industrial demand and supply shortages, citing geopolitical tensions in the Middle East, volatility in international markets and constraints in the domestic LPG market.
The company said Bashundhara Multi International Trading had entered into a business agreement with an overseas trading partner to facilitate LPG imports.
It argued that uninterrupted LPG supplies were necessary to protect industrial production and investment.
The company also alleged that shortages had created opportunities for some traders to exploit the domestic market.
“The domestic market is being exploited and some unscrupulous traders are taking advantage of this opportunity to make extra money,” the proposal said.
Allowing the company to import LPG would help support industrial production, protect investment and generate government revenue, it said.
LC difficulties
A senior official of Bashundhara Multi Trading told Just Energy News that the company had already received approval from the Ministry of Commerce to procure bulk LPG for supply to Bashundhara LP Gas Ltd.
The company is now seeking a no-objection certificate from the Ministry of Power, Energy and Mineral Resources to import LPG, the official said.
Asked why Bashundhara LP Gas had not imported LPG directly despite holding the necessary licence, the official said the company had faced difficulties opening letters of credit (LCs).
The comment highlights the role of trade finance and access to foreign currency in Bangladesh’s fuel-import market, where regulatory approval alone may not be sufficient to complete international purchases.
Ministry cites LPG policy
Officials at the Ministry of Power, Energy and Mineral Resources said applications for LPG imports are processed under the LPG Policy 2017.
“We only follow the procedures laid down in the LPG Policy 2017,” one ministry official said.
Another ministry official, speaking on condition of anonymity, said a number of applicants had failed to fully comply with the requirements under the policy.
The ministry did not immediately indicate whether either Bashundhara application had been approved.
The proposals suggest that the Bashundhara Group is seeking to expand its role in Bangladesh’s imported-fuel market through separate corporate entities.
BOGCL’s application covers both LPG and LNG and emphasises long-term energy security and supply diversification, while Bashundhara Multi Trading’s request is focused on LPG supplies for industry.
Bangladesh imports most of its LPG requirements, while LNG imports have become increasingly important as domestic natural gas production struggles to keep pace with demand.
The outcome of the applications will depend on whether the companies meet the regulatory requirements under the government’s existing policies, officials said.
