MJL Bangladesh PLC, a major lubricant marketer, intends to invest $32.5 million (Tk 350 crore) in procuring a newly-built 11,000 cubic meters capacity tanker for transporting liquefied petroleum gas (LPG) and leasing it to private LPG companies.

Rokibul Kabir, the company’s secretary, confirmed the decision made by the company’s board to acquire the vessel for importing LPG.

The board of directors of MJL Bangladesh, a collaboration between East Coast Group and Jamuna Oil Ltd, approved the purchase on Monday. Additionally, they sanctioned an extra $1.50 million for various associated expenses, according to the company’s disclosure to shareholders.

The tanker will be sourced from Japan and subsequently rented to Omera Petroleum and other LPG distributors in Bangladesh to generate revenue. The anticipated delivery of the tanker is set for 2026.

As of 1.08 pm on the Dhaka Stock Exchange, MJL’s share prices remained stable at Tk 86.7 per share.

The decision to procure the tanker aligns with the rising demand for bottled LPG for household usage due to the government halting new piped gas connections in Bangladesh.

Currently, the country requires approximately 16 lakh tonnes of LPG annually, constituting a market worth around $3.2 billion, according to industry experts and recent market assessments.

Bangladesh boasts around 30 LPG companies, with Omera LPG holding nearly 20% of the market share.

While some LPG companies possess their tankers, most rely on rented tankers for importing LPG, with roughly 60% of firms opting for this arrangement.