Parami Energy Group

Parami Energy Group of Companies is a Myanmar-based energy conglomerate active in solar powered electricity generation, Liquefied petroleum gas (LPG) import and distribution, and oil & gas exploration and development.

Parami Energy Group of Companies

Native name	ပါရမီ စြမ္းအင္ ကုမၸဏီ
Company type	Privately held company
Industry	Renewable & Clean Energy Electric Power Generation Oil & Gas Exploration
Founded	2004
Founder	Ken Tun
Headquarters	Yangon , Myanmar
Key people	Ken Tun
Website	www.parami.com

History

Parami Energy Group of Companies was founded in 2004 by Ken Tun as an engineering service provider. In 2009, Parami partnered India's Punj Lloyd Group in the construction of the landmark 40" x 205 km pipeline connecting the offshore Shwe natural gas field to China, a project that commissioned for operation in July 2013.

In 2012, Parami secured a license to explore and develop Myanmar’s PSC-I onshore oil and gas block with India’s Jubilant Energy. In 2014, it was awarded a license to explore and develop two offshore oil and gas blocks, AD-3 and A5, as minority shareholder with UK-based Ophir Energy and US-based Chevron.

In March 2017, Parami was selected by the Union Ministry of Agriculture, Livestock and Irrigation as the private sector developer and operator of solar-powered electrification projects in rural Magway and Mandalay regions as part of the Myanmar government's National Electrification Program supported by the World Bank.

In September 2017, Parami was awarded a contract by the Union Ministry of Electricity and Energy to operate a state-owned LPG import facility.

Operations

The company currently operates two projects. Under its Parami Gas brand, it markets and distributes LPG to commercial and residential customers across Myanmar. Secondly, it operates two solar power projects on Yesagyo Island and in Gyaint Gyi township of Magway and Mandalay regions respectively.

Parami Gas: Overview of the LPG Company in Myanmar

Parami Gas Distribution Public Co. Ltd. is a notable company in Myanmar's LPG market. The company was founded in March 2019 and focuses on providing safety, quality, and customer service in the residential LPG sector. Parami Gas aims to expand its offerings to commercial and industrial sectors. Through its product offerings, services, and community initiatives, Parami Gas has carved out a significant share in Myanmar's LPG market.

Product Offerings

Parami Gas provides LPG cylinders in two sizes for residential customers (12.5 kg and 5.0 kg) and two sizes for the commercial market (20 kg and 48 kg). The cylinders are manufactured by AHAMITR PRESSURE CONTAINER PLC (SMPC) of Thailand, a leading manufacturer of gas cylinders. This collaboration ensures that the cylinders meet international safety standards and offer a reliable, high-quality product to customers in Myanmar.

A distinctive feature of Parami Gas cylinders is the POL valve system, which ensures better quality and quantity control and improved safety during the filling process. In contrast to competitors using manual valve systems, Parami Gas cylinders can only be filled at approved filling stations using a special filling head for POL valves. This process guarantees that customers receive high-quality gas filled safely and accurately.

Service and Convenience

Parami Gas offers a streamlined cylinder ordering and refilling process. The company's hotline number, 8484, is easy to remember and has a positive connotation in the Myanmar language, translating to "darling darling." Customers can call the hotline to order new cylinders or request refills. Parami Gas delivers fully-filled cylinders to customers' locations and replaces empty cylinders on-site, providing a more convenient and efficient experience compared to traditional gas shops.

Market Landscape and Competition

Myanmar's LPG market is experiencing rapid growth due to increasing urbanization, a growing middle class, and an unreliable electricity grid. The market is fragmented, with local players such as Awra, Elite, and MLPG Group dominating the market. Parami Gas has differentiated itself from competitors by offering a more convenient and superior service. The four-digit hotline number, 8484, makes it easy for customers to request new sets or refills, and on-site cylinder replacement streamlines the process and provides a better customer experience.

Future Expansion and Growth

Parami Gas is set to be listed on the Yangon Stock Exchange in May 2023, which will provide easier access to capital for expansion and acquisition of planned value chain infrastructures. Parami Gas plans to develop value chain infrastructures, such as LPG terminals, storage tanks, and filling stations, to increase market share and capture more customers. The company aims to build filling stations within six months, starting in major cities like Yangon, Mandalay, and Irrawaddy. They are also in talks with an LPG terminal developer to acquire an under-construction terminal for $15 million, with an expected operational timeline of one year after finalizing the negotiation. The company aims to capture 15% of the market share in the commercial segment.

Community Initiatives

Parami Gas has partnered with the World LPG Association (WLPGA) to launch two Community Kitchens in Myanmar, one in Ho Pong, Southern Shan State, and the other in Legai, Magway Region. These initiatives provide clean LPG cooking facilities for underprivileged communities, reducing deaths from indoor pollution and improving living conditions.