Oil & Gas

16 Sep 2020

Bangladesh: Meghna Petroleum Signs Agreements For LPG Expansion

16 Sep 2020  by PWKD   

Meghna Petroleum, the state-run energy company, as part of its business expansion by selling LPG, has signed agreements with four non-listed companies–Beximco LPG Unit-1, Bashundhara LP Gas, Omera Gas One and Unitex LP Gas.

By establishing LPG (Autogas) refueling station and liquefied petroleum gas conversion workshop parallel to the sale of petroleum oil through the company’s registered fuel service station, the state-run company, as part of the agreement will sell the LPG of these companies.

As per a disclosure posted on the Dhaka Stock Exchange (DSE), Meghna Petroleum will receive royalty of Tk 0.50 against per liter sale of LPG.

To make LPG more available as a primary fuel source for vehicles in Bangladesh, Meghna Petroleum, a statutory organization under the power, energy and mineral resources ministry, has pushed ahead, and 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.

Meghna Petroleum was listed on the Dhaka bourse in 2007, and each of its share closed at Tk 199.30 on Sunday, losing 1.23 per cent over the previous day. In the last one year, its shares traded between Tk 119 and Tk 204.8. In nine months for July, 2019 to March, 2020, the company’s earnings per share (EPS) stood at Tk 19.72 which was Tk 21.53 in the same period of the previous year. Tk 1.08 billion is the company’s paid-up capital and authorized capital is Tk 4.0 billion while the total number of securities is 108.21 million.

The government owns 58.67 per cent stake in the company, while the institutional investors own 30.28 per cent, foreign investors 0.56 per cent and the general public 10.49 per cent as on July 31, 2020, the DSE data shows.

By establishing LPG (Auto gas) refueling station parallel to the sale of fossil fuel oil through their registered fueling stations as part of business expansion, agreements were signed between the state-run Padma Oil Company and Jamuna Oil Company with Omera Gas One Ltd to sell LPG.

Padma Oil also signed an agreement recently with Energypac Power Generation and Beximco LPG Unit-1 to sell LPG.

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