Meghna Petroleum, JMI Gas sign deal to beef up LPG sale

Meghna Petroleum Limited, a publicly traded company, has signed an agreement with JMI Industrial Gas Limited as part of its business expansion through selling liquefied petroleum gas (LPG).

Under the agreement, the petroleum company will sell LPG by establishing LPG (Auto gas) refueling stations and LPG conversion workshops parallel with the sale of refueling oil through the company’s registered filling stations, according to an official disclosure, posted on the Dhaka Stock Exchange website on Sunday.

As per disclosure, the Meghna Petroleum will receive royalty of Tk0.50 against per liter sale of LPG.

The signing ceremony took place at the Dhaka office of Meghna Petroleum at Meghna Bhaban in the capital on Saturday evening.

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 auto gas was already a popular and admired fuel solution across the world for being energy efficient and environment friendly. This agreement would 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 customers at low cost and easily by using the Meghna Petroleum’s filling stations,” said Razzaq.

Mir Saifullah-Al-Khaled, managing director of Meghna Petroleum said, from now on, JMI Industrial Gas would be able to install LPG pumps and sell Autogas at the registered filling stations of Meghna Petroleum.

Recently, Meghna Petroleum 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 stations.

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 the country.

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 company closed at Tk 203.60 on Sunday at DSE. Meghna Petroleum was listed on the Dhaka Stock Exchange in 2007. The company belongs to the “A” category. The company’s paid-up capital is Tk108 crore.