Terminal to Import LPG in Bangladesh

Terminal to Import LPG in Bangladesh

  • A terminal to import Liquefied Petroleum Gas will be set up in Bangladesh.
  • Indian Oil Corporation has agreed to form a joint venture Bangladesh՚s Beximco՚s LPG for setting up the terminal.
  • An agreement for LPG business in Bangladesh has been signed by
    • Indian Oil՚s Dubai Unit IOC Middle East FZE
    • Beximco՚s holding company RR Holdings Ltd, Ras Al Khaimah, UAE

Overview

  • The joint venture also intends to diversify into other downstream oil and gas businesses like
    • Lube blending plant
    • LNG, Petrochemicals, LPG export to North-East India through pipeline between two nations
    • Renewable energy
  • The joint venture will commence with acquiring Beximco՚s existing LPG assets in Bangladesh.
  • IOCL also intends to set up a large LPG terminal at a deep-water port in Bangladesh.
  • This will facilitate receipt of LPG in very large gas carriers and reduction in cost of imports.
  • The import cost reduction will help in making LPG available at an affordable price to the people of Bangladesh.
  • The agreement is a major milestone in the annals of India-Bangladesh cooperation.
  • The new joint venture will catalyze socio-economic change in Bangladesh through greater penetration of affordable LPG in the country.
  • IOC chairman said that the company, which started with the marketing of lubricant in Bangladesh in 1999, is now joining hands with a formidable partner.
  • LPG market has seen a fivefold growth in the past five years and is expected to grow at a CAGR of 12 - 13 percent.
  • The joint venture company 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.

Examrace Team at Aug 26, 2021