IOC inks JV deal for LPG business in Bangladesh

NEW DELHI: IndianOil Corporation is entering the booming LPG market in Bangladesh through an equal joint venture between its Dubai-based subsidiary, IOC Middle East FZE, and RR Holdings Ltd, the holding company of BEXIMCO group, one of the largest diversified private conglomerates in Bangladesh.
Under the deal, BEXIMCO will transfer its LPG marketing assets in Bangladesh to the joint venture. The LPG market in that country has expanded five-fold in the last five years and is expected to grow at a CAGR of 12-13% as the middle class rises with more purchasing power. IOC has been marketing lubricants in Bangladesh since 1999.
IOC chairman Sanjiv Singh said the company will build a large terminal at a deep-water port in Bangladesh so that LPG can be imported in very large gas carriers to reduce costs and make the fuel affordable for consumers.