Beximco LPG signed a deal with Jamuna Oil Company

 Beximco LPG Unit 1 said it had signed a deal with Jamuna Oil Company Ltd, a subsidiary of Bangladesh Petroleum Corporation, to sell its autogas by setting up pumps at the registered filling stations of the state-owned company. The signing ceremony took place at the Chottogram office of Jamuna Oil Company on. The agreement was signed by Gias Uddin Ansary, managing director of Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG. 

Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk0.50 per litre of LPG that is sold by Beximco LPG through their established Auto LPG pumps. 

According to the agreement, it will ensure rapid penetration of liquefied petroleum gas (LPG) for use in automobiles across the country. LPG is also known as autogas while is used in motor vehicles. 

Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for Auto LPG stations and 25 licenses for Conversion Workshops by the Ministry of Energy and  Mineral Resources earlier in 2016, said a press release of the Beximco. 

Speaking at the ceremony, Mehedi Hasan, GM, sales and marketing of Beximco LPG, said, "This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country. He said Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle. 

The number of refuelling stations for liquefied petroleum gas (LPG) or autogas and its consumption are growing fast with the big LPG players ramping up their operations as the government looks to cut dependency on other fossil fuels. The energy ministry has already given the approval for setting up 2,550 autogas stations across the country to 13 LPG operators, with many attaining permission to erect conversion centres for the fuel use mechanisms in vehicles.

The operators have already set up about 400 autogas stations with over 200 to 300 vehicles converting to LPG per day, according to industry people. Signing agreements with Bangladesh Petroleum Corporation's (BPC) three companies -- Padma Oil Company, Meghna Petroleum and Jamuna Oil Company, the operators are signing deals with registered refuelling stations of those companies for setting up autogas stations and supplying LPG.