IOC today signed an agreement for the formation of a 50:50 Joint Venture Company (JVC) for LPG business in Bangladesh .
The new Joint venture company set up today will help reduce the cost of imprt of LPG and make it more affordable for the consumers in Bangladesh.
The agreement was signed between the IOC Middle East FZE, Dubai, a wholly-owned subsidiary of Indian Oil Corporation (IOC) and RR Holdings Ltd., Ras Al Khaimah, UAE, the holding company of Beximco LPG of Bangladesh.
The LPG market in Bangladesh is fast expanding and the new project will draw upon the strengths of the Indian oil and Beximco in their respective areas.
The Joint venture company also plans to diversify into LPG export to the north eastern states of India from Bangladesh the officials ascertained
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The joint venture would begin with acquiring Beximco’s existing LPG assets in Bangladesh. “We intend 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,” said Sanjiv Singh, Chairman, Indian Oil.
The JV also intends to diversify into other downstream oil and gas businesses such as lube blending plant, LNG, petrochemicals, LPG export to north east India through pipeline between two nations and renewable energy
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