Awra Trading Co to supply LPG as petrol alternative in Yangon

Awra Trading Co Ltd will start supplying liquefied petroleum gas (LPG) as an alternative to petrol in Yangon, said chair U Kyaw Myo Naing. On December 16, the local company launched its LPG Auto Gas Filling Station & LPG Conversion Kit Installation Center in Shwe Pauk Kan Industrial Zone, Yangon.

“We are expanding and now able to provide sufficient supply of LPG for automobiles, U Kyaw Myo Naing told the Myanmar Times during the launching ceremony.

Established in 2005, Awra Trading supplies LPG imported from Thailand to retailers in Yangon and other states and regions. It runs a filling station and other facilities in the country, according to its website

The idea of using LPG as alternative to fuel is not a new one in Myanmar. In fact, both the government and private sector had in the past explored the possibility of using LPG in motor vehicles.

This is because LPG is 30 percent cheaper than petrol and more environment-friendly, according to Awra Trading. However, the main barrier had been insufficient supply of LPG, which is imported.

With the company now confident of supply, Awra Trading is expanding into markets and services. “Our modern technology enables the use of LPG to power automobiles through the installing of an LPG conversion kit which includes an LPG tank, control box and related systems on the vehicle,” U Kyaw Myo Naing, said.

As a start, Awra Trading will aim to install its LPG conversion kit on taxis in Yangon. “For taxis, one kit will cost K1 million to install. However, it will be a cost efficient option for taxi drivers, who spend more than K300,000 a month on petrol. There are now 60,000 taxis in Yangon. We are targeting 10,000 to start off,” U Kyaw Myo Naing said.

Awra Trading is introducing LPG to the transport sector on the back of government efforts to use the gas as an alternative to electricity and charcoal for cooking.

By the time its term is up in 2020, the government wants at least 1.5 million households across Myanmar to be cooking with LPG.

Less than 10pc of the current domestic consumption is locally produced, while the remaining 90pc has to be imported, mainly from Malaysia, Indonesia as well as at the Myanmar-Thai border, according to official data. Currently, Myanmar imports between 5000 tonnes and 6000 tonnes of LPG per month, most of which is used for cooking.

“In Yangon, LPG is used for cooking but there are also opportunities in the transport sector. There is a big market for LPG and we will need more infrastructure to store and distribute LPG in the future,” said Yangon Chief Minister U Phyo Min Thein at Awra Trading Co’s ceremony.

There are currently three state-owned LPG plants in Myanmar, each producing 30 tonnes of LPG per day.

Last week, Parami Energy also announced that it will be distributing 150,000 LPG cylinders in Yangon before April 2019, after which it distribute the cylinders to households across the country.

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.


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