Reasons why Elite petrochemical has decided to close gaps in value chain supply of LPG

While foreign investment in Myanmar oil and gas continues to rise, Elite Petrochemical aims to close gaps at varied points in the supply chain to achieve its fundamental strategy of expanding its usage. In particular, Elite Petrochemical is aware that Myanmar has a significant deficit in trans-shipment and storage facilities. Therefore, it has invested in art storage facilities and modern filling stations to transfer fuel from its large deports at the smaller cylinders for retail sale. Not only that, the company has made efforts to ensure that its LPF facilities adhere to the safety standards set by Myanmar governments and the international ones.



Increased investment, especially in import and distribution, can help Myanmar satisfy the ever-rising demand for LPG. In May 2018, Elite petrochemical inaugurated its first phase of the $128 US dollars LPG import and distribution facility located 25 km South of Yangon city at Thilawa Special economic zone. The facility includes a hub and terminal developed under the build, operate, and transfer model. It consists of a 3000-tonne storage tank and jetty about 2014 meters in length for cargo handling. The second phase, which is almost complete, is expected to increase the storage capacity of LPG to 25000 tonnes and 100,000 tonnes of other oil and gas products.


The local Myanmar oil and gas output accounts for less than 10 percent of the consumption since companies import most domestic LPG from Indonesia, Malaysia, and Thailand. Fortunately, the imbalanced demand and supply of LPG might rise further due to the Ministry of Energy's policies. The Ministry of energy purposes to replace available electricity with LPG to use it for household cooking. To ensure that people start investing in LPG, the government has continued to raise electricity tariffs while reducing excessive taxes charged in oil and gas products. However, Elite Petrochemical has all the types of machinery, enough products, and technical experts attributed by the completion of its main jetty for people who might wish to investment LPG products.