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© International Academic Research
Journal of Business and Management
Vol No.7, Issue No 1, March 2018, Page no. 1-18 ISSN Number: 2227-1287
Problems and Policy Implications for Ecological
Marketing Perspectives: A study on Natural Gas
Distribution System of Bangladesh
Asma Jarin
Assistant Professor
Southern University Bangladesh
Email: asmajarin@hotmail.com,asmajarin@southern.edu.bd
Abstract
Establishing an eco-friendly and sustainable energy chain is one of the greatest
challenges of our time. We have to most urgently, find out possible ways to drastically
reduce emissions of greenhouse gas such as carbon dioxide. One effective solution of
this problem is to switch on natural gas – an effective alternative to other established
energy sources. Natural gas is the key energy resources on the pathway towards more
climate-friendly choice from private households through industry to transportation
.Natural gas already covers around most of the global energy demand and is therefore
one of our most important sources of energy today. It is essential to identify the problems
for natural gas marketing practices and suggestive recommendation for resolving the
domestic customers consumption crisis. This article basically based on Karnafully Gas
Distibution Company Limitted ( KGDCL) natural gas distribution system.
Keywords: Natural Gas, Ecological Marketing, Karnafully Gas Distibution Company
Limitted (KGDCL)
STATEMENT OF THE PROBLEM
In the recent world environment,
protection and consciousness is the main
concern for all parties as like manufacturer
to ultimate consumer. Our commercial and
consumption activities cause environment
deterioration as like global warming,
depletion of stratospheric ozone layer,
pollution of sea and rivers, noise and light
pollution, acid rain and desertification.
Some research reported that about 40%
of environmental degradation has been
brought about by the consumption
activities of private households. Our
nonrenewable resources also destroyed
by this type of consumption activities of
people. The major nonrenewable
resources which we consume daily in
huge quantity i.e natural gas for our
household use. For this domestic
unlimited use of natural gas we face
severe scarcity natural gas which drives
us to use ecological marketing concept in
natural gas industry for marketing and
distribution. Now days marketing activities
are considered as hostile to environment
and they create imbalance in
environment.In the 1980s the country had
a gas surplus while in the 1990s, as
foreign aid dried up for exploration and
drilling, there was fear that Bangladesh
would face a shortage from the year
2010. But some studies suggest that
besides the above factors, the shortage of
gas in the 1990s was due to: (a) delay in
completing a development-drilling
program, (b) infrastructure limitations and
(c) a decline in production in the
Bakhrabad gas field. The gas
infrastructure limitation was attributed to
the absence of the Ashuganj-Bakhrabad
gas pipeline (Khan and Imaduddin 1999).
Another is lack of consciousness about
ecological marketing. Generally marketing
2 International Academic Research Journal of Business and Management March
of product increases waste and hamper
our ecological balance. As a result our
environment face lot of waste of
production ,exploration, distribution and
consumption of natural gas daily which
causes environmental degradation and
creates contradiction in ecological balance
(Wever, 1996).
In this paper the researcher has
attempted to focus on problems and policy
implications of natural gas consumption
perspective.
ENERGY SECTOR OF BANGLADESH
Energy Sector Structure of
Bangladesh can be represented in the
figure 1.1
Types of Energy: 1)Non-
renewable energy 2) Renewable energy
The proven reserve of natural gas
which is the principal source of
nonrenewable energy of the country is
gradually depleting. The supply of gas as
a primary source of energy will be dried
out soon if immediate steps are not taken
for exploration of new gas fields and
extraction therefore. In the use of
commercial energy, the notable ones
include the following: 1) Natural gas2) Oil
from minerals and other sources3)Coal
and coal like substance 4) Compressed
natural gas (CNG) 5) Natural Gas Liquid
(NGL)
In our country renewable energy
such as biomass, solar power and wind
power are being used since time
immemorial. Especially in areas which are
outside gas coverage, usage of biomass
for cooking and solar power and wind for
drying of different grains as well as clothes
are known to all. However, we are still
lagging far behind in the scientific use of
such energy. Moreover, the use of
renewable energy has become popular
worldwide in view of depleting reserve of
non-renewable fossil fuel. Renewable
energy is environment-friendly. At present,
the different categories of renewable
energy that are being used in limited ways
in our country are as follows:
Hydro-electricity Solar power
generation using solar rays
Wind-mill power generation using
wind power
Production of bio-gas using waste
Electricity produced by Biomass
Gasification Method using wood, rice
husk, etc.
NATURAL GAS
Bangladesh gas sector started its
journey in the 1960s, but its rapid
expansion and integration started to
accelerate in the early 1970s spurred by
the rising oil prices. Until now, 24 gas
fields have been discovered. Natural gas
fills about 75% of the total fuel
consumption of the country.
Because of the increasing demand
of gas, the exploration of new gas field
and the development of the discovered
gas fields are very important. During the
financial year 2011-12, a total of 29
projects are being implemented by Petro
Bangla and its companies in the oil, gas
and mineral sector.(Petrobangla)
The major source of our primary
energy is natural gas. Almost three-fourths
of the total commercial energy demand is
met from natural gas. It is, therefore,
considered as one of the driving forces of
the economy. As many as 23 gas fields
have been discovered since 1955 when
the first gas field was found in Sylhet. To
reduce the dependency on natural gas,
alternative energy resource must be
explored. Despite the present
government's efforts to create fuel mix in
energy generation, natural gas will
continue to dominate the county's energy
generation and economic development for
2018 Asma Jarin 3
several more years. At present, many of
the government actions are in advanced
stages. Recently gas production has
increased from 1750 to 2250 MMCFD
(million cubic feet per day). But the deficit
still stands at around 400-500 MMCFD,
and improvement of inadequate gas
transmission infrastructure remains a
daunting challenge. Power sector is highly
dependent on natural gas. (Petro Bangla)
ECOLOGICAL MARKETING
Marketing might become a part of
the solution instead of a part of the
problem. Indeed, the ecological marketing
research has produced fruitful knowledge
mainly with reference to the investigation
of the factors that might be able to
influence pro environmental behavioral
changes. This knowledge aims to be
useful both to the public policymakers and
to the firms, which are interested in
adopting ecological strategies of any type
Tilikidou and Delistavrou (2008). Today’s
the natural environment is an important
arena for economy and competition.
Ecological issues regarding natural
resources pollution and waste offer both
are competitive opportunities and
constraints .They are changing
competitive land scape in several
industries. Environmental issues become
a competitive aspect for organization .The
legal requirement is answered by
threshold resources. For that reason
organization can gain competitive
advantage by managing ecological
variables. The way environmental issues
are handle by an organization can
become core competence for it. Eco
marketing appears as a way to gain image
trust and confidence leads an organization
to a situation of advantage over its
competitors.
OBJECTIVES
The overall objective of this article
is problem and policy implication for
ecological marketing perspectives: a study
on natural gas distribution system. The
specific objective of this article given
below:
To find out the problems in
ecological marketing in context of sample
resources.
To suggest some policies
implications in order to economic use of
nonrenewable natural resources through
ecological marketing practices.
LITERATURE REVIEW
Lozada,(1999) studied that
ecological marketing can be implemented
by efficient use of natural resources and
production process ,strategies if all are
converted to ecofriendly and eco
efficiency manner. He also mentioned that
companies were also benefited by
changing their strategy, using
nonrenewable natural resources and
adopting ecological approach.
Gomes (2013) identified that
Bangladesh is facing a huge scarcity in
supply of natural gas to maintain
minimum standard required for the basic
functioning of the population. Moreover
our country should develop a better
understanding of the potential for
unconventional gas field and introduce
some policies .There are major challenges
such in exploration and challenges as
developing trend in the size of
underdeveloped gas fields lack of
geographical information for
unconventional and frontier areas limited
technology skills and human resources.
Bidderman,et al.(2007) stated R&D
spending in the energy industry, which
includes gas transmission and distribution,
has been declining and is below
comparable to other industries. Therefore,
in developing a measure of R&D
investment, an adjusted R&D intensity
measure will be used for the natural gas
4 International Academic Research Journal of Business and Management March
industry and where possible, for the
industries to which it is to be compared.
The comparison in the study also
evaluates the organizational structures
and Strategies for managing R&D
activities in the industry.
Atiquezzaman, et al.(2013) found
that variation of gas transmission has
impact on pipe line pressure. When the
pressure falls to a certain value, higher
hydrocarbon content of natural gas
becomes liquid and the reduced pressure
hinders the gas transmission especially
when it is expected to transmit across a
long distance. The Reduced pressure also
clarifies the importance of setting up
compressor station to boost up the
pressure and transmit a larger volume of
gas through an existing pipeline system.
With the increasing rate of natural gas
consumption, it is necessary to visualize
the effect of pressure change when the
consumption rate increases.
Zohir, (2002) stated that lacks the
technical capability to conduct gas
exploration and necessity for an unbiased
Production Sharing Contract (PSC), an
accurate estimate of gas reserves, and
appropriate pricing strategies. The
analysis suggests that currently
Bangladesh is no longer experiencing
shortage in the supply of gas. Thus, the
pricing of gas needs to be determined on
the basis of economic cost and depletion
premium. Moreover, a comprehensive gas
policy should be developed with a proper
regulatory body that has oversight
responsibilities. Efficient gas marketing is
the key to deriving numerous benefits
from the gas reserves of Bangladesh.
Islam and Raihan (2011) focused
on some issues as like management
related aspects, the factors affecting the
natural gas market, identified
environmental issues and at the end some
recommendations have been placed for
the improvement of the management of
natural gas.
Islam, (2011) stated that the lack
of prudent policy making and
implementation, the country is facing
energy shortage right at this moment. For
a sustainable energy growth, the country
would have to shift to renewable source of
energy while, an excellent mix of various
source of energy in the intermediate
period is essential to support current
economic development. Moreover,
Bangladesh may have to think about
import of gas as the country to keep up its
GDP growth rate of 6%.
Kovacevic,(2007) found that many
unknown, or insufficiently known,
components involved in the development
of large scale natural gas infrastructure.
Moreover he also mentioned that instead
of relying solely on regulatory and nominal
frameworks, more durable physical
security – such as multiple transit routes,
availability of storage and flexible shipping
solutions competition between routes –
are proposed to create a truly commercial
regulatory framework.
19th World Energy Congress,
Sydney, Australia focused The United
Nations Conference on “World
Development" held at Rio De Janeiro,
Brazil in 1992 and known as the "Earth
Summit” called for the importance of not
only protecting and preserving the
environment but also for the optimal use
of natural resources as well as achieving
sustainable development . The
continuation of the successful current and
expected natural gas policies (fuel
switching, gas exports, etc.) combined
with the implementation of current and
new gas technologies is expected to result
in enormous reduction of pollutants
emissions and achieving sustainable
development in Egypt.
2018 Asma Jarin 5
McCurdy,(2013) identified efficient
energy distribution and consumption can
satisfy the new demand in future at well
price. Moreover natural gas can develop
in a sustainable manner for efficient use of
gas at home, business and industrial
sector.
METHODOLOGY
The research method is a strategy
of enquiry, which moves from the
underlying assumptions to research
design, and data collection (Myers, 2009).
The researcher used both qualitative and
quantitative data for identifying problems
and policy implications for natural gas
distribution system. Some researchers
prefer using mixed methods approach by
taking advantage of the differences
between quantitative and qualitative
methods, and combine these two methods
for use in a single research project
depending on the kind of study and its
Methodological foundation. (Denzin and
Lincoln, 2003). Quantitative research
makes use of questionnaires, surveys and
experiments to gather data that is revised
and tabulated in numbers, which allows
the data to be characterized by the use of
statistical analysis (Hittleman and Simon,
1997).
DATA SOURCES
While deciding about the method
of data collection to be used for the study,
the researcher should keep in mind two
types of data viz., primary and secondary.
Sample Selection of this Research
For this research, the researcher
used non-probability convenience
sampling. De Vos and Slote (1998) states
that convenience sampling is the rational
choice in cases where it is impossible to
identify all the members of a population.
The research is conducted on Chittagong
area and sample is Karnafully Gas
Distribution(KGDCL). The study consider
100 respondents for domestic customer of
natural gas and 50 respondents for
KGDCL.
Karnaphuli Gas Distribution Company
Limited (KGDCL)
Karnaphuli Gas Distribution
Company Limited (KGDCL) has been
formed on 8th February, 2010 bifurcating
greater Chittagong and Chittagong Hill
Tracts area under BGSL franchise
pursuant to a government decision in
order to rationalize and improve the
services of the companies under
Petrobangla. The commercial activities of
the company have commenced from 1st
July, 2010.
MAJOR PROBLEMS RELATED WITH
NATURAL GAS USE AND NATURAL
GAS DISTRIBUTION
The problems faced by natural gas
customer and KGDCL are discussed in
this chapter. There are lots of shortcoming
for KGDCL in supplying to Chittagong city
customers. Moreover customers face and
create some problems. These problems
create some hindrances in ecological
marketing practices. These problems are
identified through focus group study and
questionnaire survey.
In Perspective of KGDCL
Lack of efficiency
By surveying the KDGL work place
there is lack of efficiency in their office.
Because most of the people are work in
some places for few days and then are
transferred to another places. For these
reasons the employee cannot get proper
scopes for showing their efficiency in their
assign duties.
Lack of specialized people
Sometimes in KGDCL we don’t
find specialized people. Because there are
three criteria for recruitment: General
cadre, Technical Cadre and Assistant
6 International Academic Research Journal of Business and Management March
Cadre. These three categories of people
are engaged in performing different types
of activities of KGDCL .Sometimes some
general people are involved in some
technical work .so this incur the lack of
specialization.
Lack of Sufficient manpower
KGDCL faces lack of manpower
for proper ecological marketing of natural
gas in CTG district. Sometimes the
company faces lack of technical people in
emergency accident time. In recent times
they are going to recruit people in
environment awareness department. After
recruiting these people KGDCL can
maintain proper scope for ecological
marketing of natural gas.
Lengthy process
By surveying KGDCL activities we
find that this company faces huge time
period for marketing, procuring, storing
and supplying natural gas to customer.
The company performs their activities
under control of petro bangla. For buying
or procuring any kinds of instrument they
have to complete national and foreign
tender. Sometimes it takes 6 month or 1
year for completion of these tender based
on availability of fund and instruments.
Lack of proper guidelines
This company’s total duration is
five years. All people who works here are
not much efficient for which the company
suffers lack of guidelines .Only higher
level people interacting with petrobangla.
So lower level people face lack of proper
guidelines.
Centralized decision of Petro Bangla
Most of the times Petrobangla
takes major decisions of gas buying,
selling and marketing. KGDCL sometimes
faces problems with the centralized
decision. Because petrobangla takes
decision for all gas distribution company
as like TITAS, KGDCL BAKHRABAD and
others. For these reason KGDCL cannot
takes their own decision for their own
sakes.
Government plays a dominant role
in Bangladesh Energy Sector.
Petrobanglais the key player in the entire
oil and gas value chain through the
affiliated operating in the upstream ,mid
stream and distribution and also in mining
and marketing activities. This sector has
undergone some restructuring following
the commissioning of a gas sector master
plan and strategic reviews from the major
donors, The World bank and Asian
Development Bank. (Gomes,2013). For
this reason KGDCL people cannot
participate in decision making process of
natural gas marketing. Moreover the
company just implements the centralized
decision.
Shortage of different meter and other
instruments
KGDCL faces lots of problems for
natural gas marketing when there are
scarcity of meter, regulator or other pipe
line for proper customer services. These
instruments are not available all the time
in their stock. Some instruments are not
available in our country. Some
instruments are imported from different
countries. If there are scarcity of meter
and others things then these instruments
are unavailable for one year.
Shortage of supply of natural gas
Our country’s user are increasing
day by day. KGDCL always faces scarcity
of natural gas immensely. Some of gas
fields are not effective like others. Some
fields are still stop. Scarcity of natural gas
is the major problem of KGDCL.
Increasing the demand level can create
this scarcity problem. In general the total
domestic user according 203-2014 is
2018 Asma Jarin 7
468918. So this is huge customer for
KGDCL only for domestic sector.
Lack of proper use of Knowledge
KGDCL faces lots of problems e.g.
lack of proper knowledge about natural
gas, environment awareness .For efficient
use of natural gas the officer and staff
need proper use of natural gas .Due to
lack of knowledge the officer cannot
implement the environment concept in
natural gas marketing. For ecological
marketing of natural gas the officers need
deep knowledge about the effect of
natural gas .our natural gas basically
sweet gas. it is better than other mineral
resources like coal, petroleum etc. its
causes less environmental effect.
Delay in emergency incident
Lack of staff, instruments and
interactive communication the KGDCL
sometimes can’t respond quickly to
emergency event. Some of the employees
do not perform their task properly which
incur misuse of natural gas as like quick
stopping the natural gas supply due to fire
accident in some specific areas. So most
time KGDCL can’t maintain environment
friendly marketing and reduce the misuse
of waste of natural gas.
Lack of sufficient logistics
KGDCL people always face the
shortcoming of logistics for performing
their duty task as like inspection,
emergency service and survey and mobile
court service. Basically KGDCL
employees always face insufficient
transportation for accomplishing their duty.
KGDCL employee works as a team for
any kinds of inspection, building pipeline
and Maintenance of RMS and CMS.
There is also lack of communication
instrument.
Lack of proper training
Due to lack of effective and
sufficient training of officer and staff can’t
perform their duty properly. Lack of
environment awareness training program
employee cant complies with ecological
marketing. Some technical people can’t
properly conduct maintenance task for
insufficient training program on technical
issue of natural gas.
Pressure Low or pressure drop
Another major problem is the Low
pressure of natural gas for both official
and customer side. For this problem the
staff or officer or KGDCL can’t meet the
customer’s demand. Sometimes it does
incur misuse of natural gas. It is only
caused by network problem; national grid
problem.70% customers face these
problems.
Illegal use of customer
KGDCL sometimes find that users
or customers use natural gas for illegal
pressure. Sometimes they change their
regulator or changing pressure capacity of
natural gas, intersect new pipe line in their
service line. Mainly the industrial users are
performs these types of illegal activities.
Delay of meter exchange
This is regular problem of KGDCL.
Because before repairing and
replacement of meter the officer must
have to inspect the meter and then submit
their report to authorized section. After this
report then KGDCL takes the decision of
replacement or repairing of customer
meter. For accomplishing these steps
KGDCL needs more time then another
task for meter.
Unadjustment of Customer
requirements with Government Rules &
Regulation
In recent times KGDCL has found
that sometimes customer’s requirements
8 International Academic Research Journal of Business and Management March
are not fully matched with Company’s
marketing rules and regulation. KGDCL
cannot cross their rules for gas
connection. Customers demand and
customers area and customer pressure
level all of the things must matched with
petrobangla marketing rules. Then
KGDCL doesn’t give connection to
customer.
Failure of Instruments
KGDCL natural gas supply can be
disrupted for failure of any kinds on
instruments. It can be happened for failure
of valve or regulator or default in pipeline.
Problem in filter separator block
Sometimes the KGDCL employees
find problems in filter for separating
condensate from natural gas. This filter
can be blocked by different kinds of
wastage or corrosion. Then this creates
some kinds of low pressure or blockage of
service line in customer adjacent.
Distance Area gas connection
KGDCL sometimes takes more
time for distant area customer connection
request. For distant area customer it
needs extra permission for natural gas
connection. Moreover distant area gas
connection requires different kinds of extra
instruments and creates disruption
optimum framework of natural gas
distribution.
Meter capacity cross
Sometimes the users using
tendency or demand cross the meter
capacity. Sometimes the customers uses
more than their authorized meter capacity.
Another way these overload creates
disturbance in meter. Moreover customers
illegally use more burners in one
connection which crosses meter capacity
Operational inefficiency
Overall problem of KGDCL in
natural gas marketing is lack operational
efficiency. If the total efficiency can
maintain properly then environmental
consciousness can maintain easily for
natural gas marketing. Lack of proper
training and maintenances services
KGDCL can’t achieve operational
efficiency in its activities.
Problems in perspectives of natural
gas Domestics Customers
Leakage of natural gas
The leakage of natural gas affects
the environment friendly marketing
activities of KGDCL. It increases the
misuse of scarce natural gas. Customers
face possibility of destructive accident with
the leakage of natural gas. Sometimes
this leakage can in their home or service
line. The repair of this type leakage can
only be handled through KGDCL customer
service.
Disturbance of Regulator or meter
Another major difficulty is
disturbance of regulator and meter or
riser. Company can’t easily solve this type
of problem because of meter or riser
unavailability for customers’ connection.
Maintenance team inspects and find out
the problem of natural gas and report the
authority for replacement. If available
then it takes a specific time period for
replacement.
Stoppage of gas connection for
specific time period
Now a days, it is great barrier for
natural gas user .Most of the customer in
Chittagong Face this problem because of
scarcity of natural gas .Day by day user
increases in relation to supply of gas by
KGDCL. Sometimes KGDCL uses
Specific schedule for gas supply for
specific area. Basically this schedule of
2018 Asma Jarin 9
natural gas supply facilitate the
adjustment of gas supply and demand for
whole Chittagong region .KGDCL supplies
gas for morning time in some area and
evening time for some area.
Low pressure
With schedule problem of natural
gas supply, the users also suffer by low
pressure problem. This problem can
happen according to scarcity of natural
gas, Pipeline problem, waste deposit in
regulator, maintenance problem of natural
gas. Sometimes low pressure can happen
for any kinds of crisis in national grid of
natural gas.
Riser gas leakage
Customers face these types of
riser gas leakage problems occur when
they use their natural gas. Generally risers
are available in domestic customer area.
Sometimes it is fully out of order or it
needs some maintenance for full
functioning.
Fire Accident or different kinds of
accident
In customer arena fire or different
kinds of accident can happen. But it is a
rare event. It can happen due to customer
unconsciousness or leakage of pipeline
because of old or out of order instrument
in natural gas distribution.
Unavailable natural gas supply by
KGDCL (no new gas connection)
KGDCL is not receiving the any
new application at this moment because
of scarcity of Natural gas connection. Lots
of apartments are now being built in
Chittagong city.so KGDCL has stopped
application submission option. Sometimes
it creates dissatisfaction among
customers.
Delay in gas connection process
Another major factor of natural gas
is delaying natural gas connection. Most
of the times customers have to wait for
long time for natural gas connection after
submitting their application or issuing
demand note. The causes of these waiting
mainly incur for unviability of instruments
or riser and company rules.
Lack of environment awareness
It is the main hindrance of
ecological marketing. Customers are not
conscious about environment aspect of
natural gas marketing. Most of the time
these users conduct misusing activities as
like overusing or using for drying their
cloths. Customers are really unaware
about this scarce natural resource.
Reluctant to using Natural Prepaid
meter
Within 2017 KGDCL will takes
initiative for installing prepaid meter for
domestics’ customers. This prepaid meter
ensures ecological marketing of natural
gas. But sometimes our customers are not
interested to replace their previous meter
with this type of new prepaid meter.
Because customers are not so much
educate to use technology oriented meter
and not aware about environment or
scarce resources.
These are the major problems we
find in this investigation for domestic
natural gas user and KGDCL. Basically
we find identify these problems for proper
recovery.
Policy Implications
For the ecological of natural gas
the company and government should
develop new policy which can reduce
supply gap and enhance efficiency in
natural gas distribution. The study also
recommended some managerial
implication for proper implementation of
10 International Academic Research Journal of Business and Management March
ecological marketing in KGDCL
perspectives. Here the study tries to give
emphasizes on environment safety of
natural gas and protect this scarce
resources from misuse or over use and
maintain proper customer satisfaction.
These recommended policies can be:
Create efficient corporate structure
Government, Petrobangla and
KGDCL can take proper initiatives for
creating reform attain and restructure of
the organization from top to bottom. The
company can take efficient placement
decision for optimization of human
resources and reducing cost. When the
structure will be organized then any kinds
of initiatives can easily applied for
organization. So for implication of
ecological marketing the company should
develop a well arranged and efficient
organization structure.
Develop a integrated resource planning
for the energy sector
With the help of Government and
Petrobangla, KGDCL will introduce an
integrated resources planning for natural
gas including the concept of environment
and society. This policy will ensure
ecological marketing and sustainable
development. The company should
implement the ERP software for every
activities then the proper integration can
be achieved.
Introduce a new law and increase the
fine for fraud
KGDCL can shape the existing law
for reducing illegal activities of customer.
This policy will emphasis on proper use of
natural gas and reduce the misuse of
natural gas by delinquent customers. The
Government should also monitor this and
introduce new rules and add more fine for
illegal act.
Minimization of environmental
degradation
This is a great policy and also
supportive to this research. The company
and government should all initiatives for
reducing environmental effect from
exploration to distribution. Ecological
marketing will be implemented through i.e
reducing environmental effect. When the
company will take all necessary steps to
maintain the environment safe then
ecological marketing will be properly
implemented and customer satisfaction
will be achieved.
Implement the Gas System Loss
Reduction Plan
KGDCL can implement a system
to reduce the system loss. This is
environment friendly initiatives for
reducing the misuse of natural gas. The
government can easily implement this
policy for natural gas marketing. In this
time KGDCL already reduces its system
loss from previous year. For reducing
system loss the company could have
install new instrument for separating
condensent and cleaning the pipeline.
Revised energy policy statement
The government is preparing a
Revised Energy Policy Statement that is
to provide the broad framework for
development of Bangladesh’s energy
sector. This framework also suggests
proper utilization and development of
natural gas. The last energy policy was
revised in 2014 and still all the gas
companies follow it.
When the energy policy will be
regularly revised according to international
and national law it will ensure environment
safety and will enhance optimum use of
natural gas. For this reason government
should regularly revised the energy policy
for proper ecological marketing.
2018 Asma Jarin 11
Continue to use competitive bidding
for Production Sharing Contracts as
the means of attracting IOCs to natural
gas exploration and development
We believe that the Production
Sharing Contracts (PSCs) are generally
well designed and should be continued.
The PSCs provide a transparent formula
to determine the price received by an IOC
for any natural gas discovered and to
determine resource royalties payable to
the government of Bangladesh.
They allow the IOCs control over
costs, which is essential if they are to take
substantial investment risks and if
exploration is to be undertaken efficiently.
They provide significant resource rents to
Bangladesh, with all exploration risks
being taken by the IOCs. Appropriately,
PSCs ensure that resource rights
gradually revert to Bangladesh.
Maintain continuous supply of natural
gas
In this study we find that customer
faces scarcity of natural gas. For solving
this problem KGDCL can maintain
continuous flow of natural gas by using
different sources as like LNG, Bio gas etc.
KGDCL could have utilized its all
opportunities for meeting huge customer
demand of Chittagong City. The company
has to ensure proper and innovative
environment friendly distribution system
for natural gas.
Make a clear Knowledge about Natural
Gas composition and natural gas
impact
The concentration of CO2 in the
atmosphere is soon set to pass through
400 ppm mark. Most climate scientists
consider that this represents unacceptable
Chemical experiments with the earth’s
atmosphere.
Climate change challenge means
we have to the most efficient use of all
available energy sources. Natural gas is a
clear burning fuel than coal and oil, which
offers solutions to the world’s economic
and environmental challenges in a secure
and sustainable way.(International gas
union)
Natural gas is mainly composed of
methane. When it is burned, it produces
more water than carbon dioxide by mole,
in contrast to coal which produces mainly
carbon dioxide, it produces only about half
the carbon dioxide per kilowatt-hour that
coal does. Current estimates by the EPA
place global emissions of methane at
85 billion cubic meters (3.0×1012 cu ft)
annually, or 3.2 per cent of global
production. Direct emissions of methane
represented 14.3 per cent by volume of all
global anthropogenic greenhouse gas
emissions in 2004 but less than coal and
other minerals.(www.wikipedia.com)
Exploring the Total natural Gas
Compositions of KGDCL
Analyzed by KGDCL, natural gas
includes 94.19 methane produces less
carbon dioxide than other minerals. By
exploring gas composition the KGDCL
could have creates a clear knowledge
among their huge customers of
Chittagong city. Our natural gas is very
much safe than other natural resources.
Natural gas is sweet gas by comparing to
other resources like coal and oil which
produce more carbon dioxide. In the table
shows the 96% of methane and o.356
carbon dioxide. So it is very much
essential to explore the gas composition
to the customer .Now the study represents
total view of gas composition of natural
gas in November’2015 in the following
table:1.2
Create an environment consciousness
among customers
For sound ecological marketing we
have to create customer consciousness
about the natural nonrenewable resources
12 International Academic Research Journal of Business and Management March
of Bangladesh and our natural gas.
KGDCL can publish the total information
of recent demand and supply natural gas
for CTG city. Then customer gets proper
information about the reserve of resources
in Bangladesh.
During extraction, storage,
transportation, and distribution, natural
gas is known to leak into the atmosphere,
particularly during the extraction process.
A Cornell University study in 2011
demonstrated that the leak rate of
methane may be high enough to
jeopardize its global warming advantage
over coal. This study was criticized later
for its over-estimation of methane leakage
values.(www.wikipedia.com)
Customers must have knowledge
about the leakage of natural gas which
creates some kinds of environment
pollution.
Make the customers understandable
that it is scarce nonrenewable
resources
Ecological marketing can properly
be implemented through creating
awareness among customers about the
natural gas as nonrenewable and scarce
resources. Most of the customers are not
conscious about this product properly.
They don’t think that they can use it
unlimitedly. Sometimes they become
reluctant to control the using pattern. we
can use natural gas in different form as
Natural gas, CNG, LNG ,LP .According to
Petrobangla Annual Report 2013-2014,
domestics customers only use 12% gas.
Total national production of gas upto
December 2014 is 12.56 TCF.
Building Green image for the company
For sound ecological marketing we
have to build up a green image in the
market. The green image will generate a
more positive public image which can in
turn, enhance sales, increase stock
prices, and open access to public capital
markets (Marshall & Mayer 1992).A green
image may enhance the overall perception
of product quality and when coupled with
the environmental benefits inherent in a
product and /or its use may provide the
added value that consumers would favor
(Ottman& Terry, 1998).
In this perspective the KGDCL will
have to maintain green image for proper
implementation of ecological marketing.
Positive image of KGDCL can enhance
the market growth. They have to publish
some article and advertise it’s self as eco
friendly company to their customers.
Spending revenues to educate buyers
about the benefit of natural gas
Spending revenue to educate
buyer (e.g.First Brands informational
brochures such as “The Good
environment guide”.(Lozada)The company
will have to spend revenue to educate its
customer about the positive side of natural
gas and sometimes company could inform
it customers about natural gas through
informational brochures, sms, email
message, posters, banner, festoon and
promotional cards.
Increase the foreign aid for proper
implementation of environment friendly
marketing
KGDCL has to integrate some
foreign aid for total natural gas
distribution. This foreign aid will contribute
to ecological marketing and enhance new
ways for ecofriendly marketing. In recent
there are different foreign aid available for
natural gas marketing and increasing its
efficiency as like ADB and JICA etc.
Installation of environment
Management and standards
Companies can install environment
standards and system EMS such as ISO
2018 Asma Jarin 13
14000, EMAS and using method aimed at
eco efficiency (Vagasi2004).
According to Epstein and Roy 2001,
implement these systems companies may
systematically specify, manage their
environmental obligations and risks. EMS
system also provides guidelines to
describe and implement environmental
strategy. According Bieker
2003companies can use them for
organizing and controlling on operating
levels.
Research and Development on Natural
gas
KGDCL has to introduce research
and development activities on natural gas
sector.In recent time the business and
regulatory environment in the natural gas
industry presents a unique set of
challenges. An aging infrastructure and
workforce changing supply and demand,
working with stakeholders and others
drive us to research and development on
this sector.
According to American Gas
Foundation, 2007
The USA natural gas industry has
funded research and development to
address the important industry challenges
of maintaining the safety and integrity of
the gas transmission and distribution
systems, controlling costs and enhancing
productivity and maintain environmental
sustainability . (Gomes, 2013)
The research objectives of R&D on
natural gas can be
Improving monitoring and
assessment of system integrity
Enhancing system flexibility and
throughput and reliability
Reducing incidence and cost of
subsurface damage
Improving capability of cost
effective construction, maintenance and
repair
Improving data quality and
timeliness for system, operation, planning
and regulatory acceptance
Identify and mitigating
environmental issues.
Identify the optimum distribution
channel and finding new way for meeting
customer demand.
Improving and discovering new
gas sector
Eco- labeling for proper ecological
marketing
According to Global eco-labeling
network an “ecolabel is a label which
identifies overall environmental preference
of a product or service with in a specific
product service category based on life
cycle consideration.
It normally attracts the already
environmentally and socially aware
segment consumers, but it serves as a
communication vehicle for awareness
transfer to the market at large. Eco-
labeling provides information to the
consumer, a kind of extended quality
assessment of products and
services.(Bratt etl.,2011)
The KGDCL will use eco-labeling
for informing customer about eco
friendliness of product, safety of product,
ingredients , using advised information
and emergency contact information etc.
about of natural gas .the company could
have placed eco labeling on the regulating
me(RMS) ,riser and meter and other
visible instruments of KGDCL.
Use Eco advertising for sound
ecological marketing
To put it simply, green marketing is
a process of selling a product or service in
14 International Academic Research Journal of Business and Management March
a way that takes into consideration its
effect on the environments and devise
strategies to objectives without negatively
impacting the ecology. Eco friendly
intention will replace these traditional
ways with cleaner digital advertising and
internet marketing that bears minimal on
the resources( Raspaile,2010).
The KGDCL has to integrate eco
advertisement system for promoting
natural gas and informing their customer
for minimum use. Moreover KGDCL can
introduce internet marketing: online
advertisement and maintain closer
customer relationship interactive
communication through their website.
Add carbon tax or Green tariffs with
this product as natural resources and
justify the increase amount in price
KGDCL should increase price of
natural gas as a creating consciousness
or reducing misuse of natural gas.
Moreover they can add use new concept
in natural gas pricing by adding carbon tax
or green tariff for environment protection.
Green tariffs In the UK electricity
industry, environmentally concerned
consumers can opt for a ‘green tariff’ from
many suppliers. This costs about £18 per
year more for a typical family, but ensures
that the energy purchased on the
customer’s behalf comes from more
sustainable sources Prices can be raised
to reduce the consumption of
environmentally sensitive products. Price
increases can be used to reduce energy
consumption or to reduce the flow of
tourists to unique and vulnerable habitats,
or attractions which are in danger of being
overwhelmed (Charles, et al., 2002).
Redesign of Distribution Channel for
optimum utilization
The KGDCL could have to
redesign its distribution system for the
optimum utilization of natural gas and
proper implementation of ecological
marketing practices. KGDCL could have
to reduce its some zone division by
integration. Then it could be beneficial for
KGDCL for maintain the zone with less
cost and attain the optimum utilization of
natural gas.
Replacing and the instruments before
any kinds of accident
The KGDCL will replace its old
instruments by new instruments and
avoiding the possibility of accident before
any kinds of pipeline leakage or damage
of regulator. The company should takes
proper initiatives in advance for making
the availability of natural gas instruments.
For this replacement they have to inspect
the major distribution line properly and
regularly.
Periodical Inspection on customer gas
connection
For proper implementation of
ecological marketing of natural gas the
company has to conduct regular
inspection on customer connection. It can
yearly or half yearly and uses mobile court
for reducing illegal user of natural gas, use
maintenance team for repairing leakage.
Reordering instruments for Timely
delivery
KGDCL should install re ordering
system for timely delivery of instruments
to its customer and reducing the
unavailability of natural gas instruments
which can increase customer’s
satisfaction.
Increasing the manpower for proper
maintenance of natural gas
KGDCL will have to increase its
manpower for proper maintenance and
conducting gas delivery service in its eight
zones of total Chittagong City. For this
reason the company could have to recruit
the people who have environment and
2018 Asma Jarin 15
technical knowledge i.e. clear
understanding about the environmental
impact of natural gas.
More emphasis on customer
satisfaction related factor
The KGDCL should have to give
more attention on most influencing seven
factors of customer satisfaction i.e
environmentally clean energy, less
environmental impact, structured
infrastructure, distribution system, bill
payment, quality of gas service, value
delivery complexity. If the company try to
improve these factors then customers
satisfaction will be enhanced.
Increase profit and Condensent sales
revenue and decrease system loss and
gain
For ecological marketing KGDCL
needs have to increase the profit and use
the efficient technology for reducing
system loss. If the company could have
increase the profit it can shows its
performance .Moreover it should invest its
profit for restructuring the total
organization and will making it fully eco
friendly.
CONCLUSIONS
At the end of this research the
concludes that ecological marketing is not
a new concept but its acceptance
increases day by day because today’s
world now eagerly responding toward
environment consciousness. In 2015
COP21, also known as the 2015 Paris
Climate Conference, will, for the first time
in over 20 years of UN negotiations, aim
to achieve a legally binding and universal
agreement on climate, with the aim of
keeping global warming below 2°C. It is
particularly effective for natural gas
marketing because it’s fully natural
product and low environment affect i.e. its
produces less carbon dioxide in
comparison to other natural nonrenewable
resources. This research also supports
that this concept clearly that it has less
negative effort on environment.
Distribution Company tries to cover the
Chittagong City demand for natural gas,
but the demand is increasing day by day.
The researcher tries to find out problems
and suggestive recommendation for
efficient distribution of scarce natural gas
for meeting huge demand of domestic
customer.
REFERENCES
Atiquezzaman,K.M.,Shamsuddoha,M.and
Quraishy,I.A.S.(2013).Pressure
drop analysis of natural gas
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International Journal of Chemical
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Bieker,T.(2003).Sustainability
Management with the Balance
Score Card, Corporate
Sustainability, 5th International
Summer Academy on Technology
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Bidderma,N.,Fay,J.,Mcclinton,M.,andWhel
an,M.(2007). Researchand
Development in Natural gas
Transmission and distribution.
Gomes, I. (2013). Natural Gas in Pakistan
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Epstein, M. J., & Roy, M. J. (2001).
Sustainability in action: Identifying
and measuring the key
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Khan,M.A.A. and Imamuddin,M.(1999).
“Gas demand and supply scenario
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chapter in proceedings:2nd
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International Gas Union, The role of
natural gas in sustainable energy
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Natural Gas Management: A
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Marshall, M. E., & Mayer, D. (1992,).
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Lozada,R.H. (1999): Ecological
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Seton Hall University,
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Zohir,S.C.(2005).Natural Gas Sector in
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2018 Asma Jarin 17
Table Distribution of Respondents according to categories respondents for KGDCL and Domestic
Customer of Natural Gas
Categories
Number
KGDCL General Manager
5
KGDCL Deputy General Manager
5
KGDCL Manager
15
KGDCL Assistant Manager
15
KGDCL Staff
10
Domestic Customer Male
Domestic Customer Female
32%
68%
Figure: Energy Sector of Bangladesh
Table Problems faced by customer
Particulars
Percentage problems faced by
Customer
Leakage of natural gas pipeline
5%
Disturbance or block of Regulator or meter
10%
Stoppage of gas connection for specific time period
New Gas Connection
Low pressure of gas supply
70%
Riser gas leakage
10%
Accident due to the users unconsciousness or fire
5%
DeLay in gas connection process
If unavailable of instruments
Source: Survey
Natural gas
Electricity
Petroleum
Coal
Exploration and
import
Transmission
Marketing &Distribution
Energy Sector
18 International Academic Research Journal of Business and Management March
Table Natural Gas Composition
SL
No.
Name of the Components
Design Value (Vol%)
Actual result (vol%)
1
Methane
94.191
96.216
2
Ethane
3.619
2.2275
3
Propane
0.772
0.515
4
Iso-Butane
0.217
0.147
5
n-Butane
0.103
0.096
Iso –pentane
0.036
0.049
n-pentane
0.019
0.031
6
Carbon dioxide
0.392
0.356
7
Argon
.068
0.007
8.
Nitrogen
0.0583
0.308
8
Suffer
10(vpmm)
-
9
Heating value
8887.00
8790.55
10
Specific gravity
0.5940
0.5808
Source:KGDCL internal data