Strengthening the LMBD Distribution Network
Increasing the Availability of Liquid Petroleum Gas in Senegal: Strengthening the LMBD Distribution Network
LMBD is a private company based in Senegal that specializes in the distribution of liquid petroleum gas (LPG). The company holds 8% of the country’s market share with a sales volume of 10,000 T per year. This project aims to increase the stock of gas cylinders for a network of 10 butane gas wholesalers that work in partnership with LMBD.
The company has access to the following:
- a small gas refilling plant that can refill 60 T per day
- four tanks with a storage capacity of 300 T
- a 2km pipeline to the Société Africaine de Raffinage refinery, which supplies LPG
- a stock of 280,000 cylinders (260,000 6kg cylinders and 12,300 2kg cylinders)
LMBD has already received a loan of 160 million USD from the AREED project to increase its stock of gas cylinders. This loan was completely repaid by December 2009.
This project aims to add a stock of 3,000 cylinders for each of 10 wholesalers who work with LMBD so they can enhance their ability to provide LPG to customers. This added stock will also increase the number of small energy shops that distribute LPG, which will simultaneously increase energy access to customers and generate employment for women in the peri-urban area. Furthermore, increased stock will help expand LMBD’s presence in the rural areas near Dakar, Thies, Diourbel, and Fatick.
Six of the 10 wholesalers targeted by the project have already worked with LMBD for a long time and have a solid record. The four others are new partners who will help extend the gas supplier network in rural areas, which will improve energy access for rural households.
This initiative falls under the second phase of the AREED approach, and fits into the wholesaler transformation process that AREED promotes. The professionalization of the wholesaler’s work will contribute to efforts to improve access to clean energy services in rural and peri-urban areas.
The total cost of the project amounts to 313,8000,000 XOF, or 31,380,000 XOF per wholesaler. The cost breakdown is as follows: 31.9% to be covered by AREED, 38.2% by BRS and 29.9% by LMBD.