Parami Energy Group of Companies, a local firm, will distribute liquefied petroleum gas (LPG) in Myanmar under its own brand, CEO U Pyi Wa Tun told The Myanmar Times.
Parami Energy, one of the two firms permitted by the government to import and sell LPG in the country, commenced wholesale distribution of LPG after winning the tender to hire state-owned Thanlyin refinery in 2017. Myanmar does not have the infrastructure needed to produce its own LPG.
Going forward, the company will only distribute LPG under the Parami brand, he said.
Currently, Myanmar imports around 5,000 tonnes to 7,000 tonnes of LPG. This is enough to cover just 5 percent of the total number of households in the country. Much of the imported LPG is now used for commercial purposes, such as in hotels, restaurants, tea shops and factories.
In fact, LPG utilisation in Myanmar is the currently lowest among all the ASEAN countrie. The average household consumption of LPG in ASEAN is 90pc of total households and in Thailand, it is 95pc.
Before Parami Energy and a second company, Elite LPG Terminal, were allowed to import LPG, Myanmar relied on LPG imported via the Thai border. As such, market expansion was quite difficult, U Pyi Wa Tun said.
However, the government recently permitted private sector participation to achieve its target of bringing LPG to 150,000 out of the 10 million households in the country by 2018 and to 2 million households by 2020.
“A total of 150,000 new LPG cylinders have arrived in Yangon. We will distribute these under the Parami brand to 150,000 households within the next few days. We will ensure the cylinders reach each household kitchen,” U Pyi Wa Tun said.
Parami Energy 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.
Sources: Myanmar Times