Beximco, Indian Oil sign joint venture deal for LPG
Beximco and Indian Oil Corporation have joined hands signing a Joint Venture Agreement for the formation of a 50:50 joint venture company here to meet the growing demand for Liquefied Petroleum Gas (LPG) in India and Bangladesh.
According to the Energy Division IOC Middle East FZE, Dubai and RR Holdings Ltd, Ras Al Khaimah, UAE, the holding company of Beximco LPG of Bangladesh, on Tuesday signed the agreement for LPG business in Bangladesh.
IOC Middle East FZE is a wholly-owned subsidiary of Indian Oil Corporation, India's largest refiner and marketer of petroleum products.
According to the agreement, a joint venture company would be formed soon and would begin functioning by taking over Beximco's existing LPG assets. The agreement signing ceremony was broadcast here through video conferencing.
"JVC also intends to diversify into other downstream oil and gas businesses, lube blending Plant, LNG, Petrochemicals, LPG export to North East India through pipeline and renewable energy," Nasrul Hamid, State Minister for Power, Energy and Mineral Resources said during the
virtual JVA signing ceremony from his residence.
Dharmedra Pradhan, Minister for Petroleum and Natural Gas and Steel, India presided over the function virtually, Prime Minister's adviser (industry and private investment) and Chairman BEXIMCO Group Salman F Rahman, Chairman Indian Oil Corporation Sanjiv Singh, High Commissioner of India to Bangladesh Riva Ganguly Das were also present on the occasion.
"The agreement aims 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," the state minister said.
Taking part in the discussion Dharmedra Pradhan, Minister for Petroleum and Natural Gas and Steel, India said that the agreement is a major milestone in the annals of India-Bangladesh cooperation when a group company of Indian Oil based in Dubai is joining hands with one of the most promising LPG companies in Bangladesh through its holding company in UAE for LPG business in Bangladesh.
The Minister 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.
Speaking on the occasion, Sanjiv Singh, Chairman, Indian Oil, 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, according to Indian High Commission in Dhaka.
Reduction in cost of import would help make LPG available at an affordable price to the people of Bangladesh, he added.
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.