With an aim to upgrade Bangladesh�s LPG sector, Star Consortium yesterday joined hands with Iran-based Servigas to establish production facilities of LPG trucks, LPG Industrial storage tanks, household cylinders for cooking stove and cylinders for vehicles.

Star Infrastructure Development Consortium Limited and Servigas Inc signed a memorandum of understanding (MoU) at a ceremony organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in a hotel in Dhaka.

Abdul Matlub Ahmad, president of FBCCI and also the chairman of Star Infrastructure Development Consortium Limited, and Shahariar Rabiee, managing director of Servigas, signed the MoU on behalf of their respective companies.

Matlub Ahmad said that initially the joint venture will invest around $12 million to establish facilities to produce LPG storage tankers and household tankers.

�We have chalked out three probable locations � Mongla of Bagerhat, Sonargaon of Narayanganj and Kishoreganj � for the production facility.

�Out of these, one will be selected after a technical team from Iran visit the places and finalise the factory site.�

Addressing the ceremony, Matlub also said that the production of LPG has increased worldwide but its price has fallen significantly.

He further said that India has helped this industry by allowing duty free import of critical components like regulator, valve, LPG industrial storage and various industrial cylinders.

Speaking on the occasion as chief guest, Tawfiq-e-Elahi Chowdhury, energy advisor to the prime minister, said through this agreement Bangladesh has paved way for the import of LPG from Iran.

�But the most important part is that through this agreement, Servigas will transfer its knowledge and technical expertise of the LPG sector to Bangladesh and eventually help us take the sector forward.� he added.

He also said that the dependency on domestic gas has to decline. �For domestic purpose, there is no option but to go for LPG.�

Tawfiq said that Bangladesh is yet to promote LPG into the country�s energy mix on a large scale. �This will change with steps like this.�

Shahariar Rabiee, managing director of Servigas, in his address said that his company now wants to share its technical knowledge and expertise with Bangladesh.

He said Servigas is responsible for manufacturing a variety of cylinders and pressure vessels for storage, transport and distribution of LPG.

The company has been trying to meet customer needs by producing safe and diverse products in compliance with global standards, he added.

Servigas is a subsidiary of Butane Group, which was founded in 1953 as the first LPG distribution company in Iran.

Mohd Noor Ali, vice-chairman of Star Consortium, said that they are teaming up with one of the market leaders of LPG in the world.

�I hope with this partnership we will be able to contribute to the country�s LPG sector.�

Dr Abbas Vaezi, ambassador of Islamic Republic of Iran, said that Bangladesh is moving towards the path of development rapidly.

�Bangladesh and Iran has one of the oldest trade relation. Right after Bangladesh achieved its independence, we had established a trade relation. Now as the economic embargo on Iran has been removed we want to explore new trade territories.�

AR Khan, chairman of Bangladesh Energy Regulatory Commission, Shafiul Islam Mohiuddin, first vice-president of FBCCI, also spoke on the occasion.

 

By Dhaka Tribune