Meghna Petroleum, a listed company in the country's stock market, has signed an agreement with JMI Industrial Gas Ltd as part of business expansion.
Under the agreement, the petroleum company will sale LPG by establishing LPG (Auto gas) refueling station and liquefied petroleum gas (LPG) conversion workshop parallel with the sale of refueling oil through the company's registered filling station.
Recently, the Meghna Petroleum has also signed similar agreements with four companies -- Beximco LPG Unit-1, Bashundhara LP Gas, Omera Gas One and Unitex LP Gas as part of its business expansion by selling LPG through its registered filling station.
The Meghna Petroleum, also a subsidiary of Bangladesh Petroleum Corporation, will receive royalty of Tk 0.50 against per liter sale of LPG, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Sunday.
The signing ceremony took place at Dhaka office of Meghna Petroleum at Meghna Bhaban on Saturday evening, said a press release.
Mir Saifullah-Al-Khaled, managing director of Meghna Petroleum and Md Abdur Razzaq, managing director of JMI Group signed the agreement on behalf of their respective companies.
Md Abdur Razzaq said, autogas is already popular and admired fuel solution across the world for being energy efficient and environment friendly. This agreement will ensure rapid penetration of Auto LPG for use in automobiles across the country.
"We have already established a strong network for LPG supply across the country. Through signing the contract, we can now provide LPG to the customer at low cost and easily by using the Meghna Petroleum's filling stations," said Mr Razzaq.
Mir Saifullah-Al-Khaled, managing director of Meghna Petroleum said, from now on, JMI Industrial Gas will be able to install LPG pumps and sell Autogas at the registered filling stations of Meghna Petroleum.
The Meghna Petroleum, a statutory organisation under the power, energy and mineral resources ministry, has stepped forward to make LPG more available as a primary fuel source for vehicles in Bangladesh.
The move comes as part of the government's ongoing efforts to increase LPG consumption in the country, where reserves of natural gas are depleting rapidly.
Each share of the Meghna Petroleum, which was listed on the Dhaka bourse in 2007, closed at Tk 203.60 on Sunday, gaining 0.54 per cent over the previous day.
Its shares traded between Tk 119 and Tk 210 in the last one year.
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