Bangladesh signs 1st investment agreement with 'new' Iran for LPG cylinder factory

[Russell]

Bangladesh has signed an agreement with oil and gas-rich Iran on the production of LPG bullet trucks, LPG industrial storage tanks, household cylinders for cooking stoves and cylinders for vehicles in Dhaka.

This is the first agreement related to joint investment between the two countries since international sanctions earlier imposed on Iran were lifted following last July's landmark deal on curbing Tehran’s nuclear programme.

Following the deal with the West, Iranian Foreign Minister Mohammad Javad Zarif visited Dhaka and evinced interest in enhancing relations with Bangladesh.


During his visit, Zarif also suggested cooperation in energy, textiles, manufacturing, industry, science and in areas where both countries had “complementarities”.


After Sunday’s signing in Dhaka, Iranian Ambassador Abbas Vaezi said this would open “a new era of cooperation” between the two nations.

Servigas Company of Iran and a consortium of 16 Bangladeshi private companies under the Bangladesh Star Infrastructure Development Consortium Ltd signed the agreement.

Abdul Matlub Ahmad, President of FBCCI, signed the agreement on behalf of the consortium with the Managing Director of the Servigas, Shah Sh Rabiee.

Prime Minister’s Adviser on Power and Energy Tawfiq-e-Elahi Chowdhury, who witnessed the signing, said it would be the “biggest ever joint investment” agreement between Dhaka and Tehran.

He said depleting natural gas reserves and increasing demand from the factories had forced the government to look for alternative sources for energy, such as LPG.

The FBCCI president said $12 million would be the total cost for setting up the factory.

He said the site for the factory was yet to be finalised, but he hoped that the cylinders from it would hit the market within a year.

“If the two sides agree, then the factory can be set up at any place in Narayanganj, Kishoreganj or Mongla,” he said, responding to a question.

These cylinders would be better in quality than the imported ones and would be cheaper.

It's not going to set the world on fire...but it's a start and anything that results in more jobs is welcome.

 

[Michael Corleone]

We should get gas cylinders in all houses instead of unlimited supply of gas. Like that and the wasteful strategy of savage Bengalis the gas will run out eventually and then we can't blame anyone but ourselves.

 

[bdslph]

A good and positive move

 

[Russell]

We should get gas cylinders in all houses instead of unlimited supply of gas. Like that and the wasteful strategy of savage Bengalis the gas will run out eventually and then we can't blame anyone but ourselves.

My apartment building now has pre-paid gas meters for every flat. The old system of BDT 650 regardless of usage is gone.

So, you recharge your account and pay as you go. For those who waste or use a large amount of gas - this will result in them paying the price - no pun intended. And vice versa, those who don't will no longer have to pay a premium.

This has been implemented only in a few select areas and will take time to cover the whole of Dhaka - it is an expensive proposition. But, not only will it help with gas shortages, but also reduce some of the corruption around gas lines/connections/consumption.

 

[Michael Corleone]

My apartment building now has pre-paid gas meters for every flat. The old system of BDT 650 regardless of usage is gone.

So, you recharge your account and pay as you go. For those who waste or use a large amount of gas - this will result in them paying the price - no pun intended. And vice versa, those who don't will no longer have to pay a premium.

This has been implemented only in a few select areas and will take time to cover the whole of Dhaka - it is an expensive proposition. But, not only will it help with gas shortages, but also reduce some of the corruption around gas lines/connections/consumption.

I heard of it. My newly built apartment was equipped in old fashion and I was quite disappointed to see the pipe. Clueless women in this country. Can't even bother to switch of the darn thing and save resources.

 

[Nilgiri]

The old system of BDT 650 regardless of usage is gone.

Was old system govt run? No private company would do that.

 

[Bilal9]

My apartment building now has pre-paid gas meters for every flat.

They look like this I believe....

 

[Russell]

Was old system govt run? No private company would do that.

Of course it was govt run...lol

And even the BDT 650 used to be BDT 500 until recently. It wasn't uncommon to see people not turn off the stove in order to save a single matchstick or dry clothes all night long using the stove.

@Bilal9 spot on.

 

[Nilgiri]

Of course it was govt run...lol

And even the BDT 650 used to be BDT 500 until recently. It wasn't uncommon to see people not turn off the stove in order to save a single matchstick or dry clothes all night long using the stove.

@Bilal9 spot on.

Thats terrible. So this wasteage was all financed by taxpayers. All that money down the drain.