The IOC Middle East FZE and the RR Holdings Ltd have signed a milestone joint venture agreement for LPG business in Bangladesh.
IOC Middle East FZE in Dubai, a wholly-owned subsidiary of Indian Oil Corporation, India’s largest refiner and marketer of petroleum products. The RR Holdings Ltd., Ras Al Khaimah, UAE is the holding company of Beximco LPG of Bangladesh.
On Tuesday they signed an agreement for the formation of a 5050 joint venture company for LPG business in Bangladesh, the Indian High Commission in Dhaka said.
Indian Minister for Petroleum & Natural Gas and Steel Dharmedra Pradhan, who presided over the function, said that the agreement is a “major milestone” in the annals of India-Bangladesh cooperation.
He expressed confidence that similar to the success of LPG penetration in rural India, the new joint venture in Bangladesh would be the catalyst of socio-economic change through greater penetration of affordable LPG in Bangladesh.
Sanjiv Singh, Chairman, IndianOil, said that Indian Oil started with lubricants marketing in Bangladesh in 1999 and is today joining hands with a formidable partner in Bangladesh.
LPG market in Bangladesh has seen a five-fold growth in the past five years and is expected to grow at a CAGR of 12-13 percent.
The JVC will draw strength from the core competencies of Indian Oil and the local expertise of Beximco.
As per the business plan, the JVC would begin functioning by taking over Beximco’s existing LPG assets.
“Our desire is to set up a large LPG terminal at a deep-water port in Bangladesh, which would facilitate receipt of LPG in Very Large Gas Carriers, leading to reduction in cost of imports. Reduction in cost of import would help make LPG available at an affordable price to the people of Bangladesh.”
The JVC aspires to become the most trusted, admired and premiere LPG company in Bangladesh offering the safest, smartest and most convenient LPG solutions with best-in-class customer service.
JVC also intends to diversify into other downstream Oil & Gas businesses such as lube blending Plant, LNG, Petrochemicals, LPG export to North East India through pipeline, and renewable energy, among others.
The agreement signing ceremony was broadcast in Dhaka through video conferencing.
Besides Nasrul Hamid, State Minister for Power, Energy and Mineral Resources of Bangladesh, Riva Ganguly Das, High Commissioner of India to Bangladesh, was also present on the occasion.
