Bangladesh and Dubai-based Emirates National Oil Company (ENOC) agreed recently to conduct a feasibility study on setting up a liquefied petroleum gas (LPG) terminal in the country, a Dhaka-based official said.
"Today we held talks with the ENOC delegation and decided to conduct a feasibility study for a joint venture project to build an LPG terminal," he said.
"This is a positive step. After the study, we will finalize the capacity for the terminal and other related things," he said after the meeting in Dhaka.
Bangladesh currently imports LPG mostly from Oman and Qatar, he said.
Transport costs for LPG are now about $100 per tonne but once the terminal is built that cost could fall to $30 as it will allow big ships to anchor, which would translate into a 10 per cent lower price for end-users, he said.
The LPG terminal could be built at Matarbari on Moheshkhali Island in the Bay of Bengal, where the country's first deep-sea port will be built, the official said.