According to a press release issued by the High Commission of India 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 Joint Venture Company (JVC) will help reduce the import cost of LPG and make it available at an affordable price to the people of Bangladesh. The JVC also plans to diversify into other linked businesses like LNG, Petrochemicals, and LPG export to North East India through pipeline.
Presiding over the function, Minister for Petroleum and Natural gas and Steel, Dharmendra Pradhan said that the agreement was a major milestone in India-Bangladesh relations. He expressed the hope that the new joint venture would help in greater penetration of affordable LPG in Bangladesh.
Speaking on the occasion the Chairman of the IOC Sanjiv Singh said that the Joint Venture Company will draw strength from the core competencies of IOC and local expertise of Beximco. He said that IOC desires to set up a large LPG terminal at a deep-water port in Bangladesh to facilitate receipt of LPG in very large gas carriers which will help in reducing the cost of import.
High Commissioner of India to Bangladesh Riva Ganguly Das and the state Minister for Power and Energy, Government of Bangladesh Nasrul Hamid were present on the occasion of the agreement-signing ceremony which was broadcast through video conferencing.