India-Bangladesh form 50:50 Joint Venture Company for LPG business in Bangladesh

India and Bangladesh today signed an agreement for the formation of a 50:50 Joint Venture Company (JVC) for LPG business 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 new joint venture company that was established today takes further the government's 'neighbourhood first' policy. The joint venture aims to set up a large LPG terminal at a deep-water port in Bangladesh, which will facilitate receipts of LPG, leading to a reduction in the costs of imports.

Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel, in a tweet said. "I am happy that energy cooperation between our two countries has made considerable progress in the last few years as a part of Hon. PM Shri @narendramodi's efforts to build an energy bridge with Bangladesh in-sync with our 'Neighbourhood First' policy."

The energy cooperation between India and Bangladesh has made big strides in recent times and the new Joint venture is another step in the same direction.

In another tweet, Mr Pradhan also thanked Bangladesh side for supplying LPG to our northeastern states based on a project launched during the visit of H.E PM of Bangladesh last year.

The Joint Venture Company will help reduce the cost of import of LPG and make it more affordable for the consumers in 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 company plans to diversify into LPG export to the northeastern states of India from Bangladesh which will prove to be a win-win situation for both the countries.