IOC Middle East FZE, Dubai and RR Holdings Ltd, Ras Al Khaimah, UAE, the holding company of Beximco LPG of Bangladesh, on Tuesday signed an agreement for the formation of a 50:50 joint venture company for LPG business in Bangladesh.
IOC Middle East FZE, a wholly-owned subsidiary of Indian Oil Corporation, India’s largest refiner and marketer of petroleum products.
Dharmedra Pradhan, Minister for Petroleum and Natural Gas and Steel, India, who presided over the function, 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, IndianOil, said that IndianOil 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 IndianOil and the local expertise of Beximco, according to Indian High Commission in Dhaka.
As per the business plan, the JVC would begin functioning by taking over Beximco’s existing LPG assets.Their 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 and gas businesses, for example lube blending Plant, LNG, Petrochemicals, LPG export to North East India through pipeline, renewable energy etc.
The agreement signing ceremony was broadcast here 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 were also present on the occasion.