In a deal of $32 million, or roughly Tk390 crore, the French corporation Totalgaz’s local activities would be acquired by the Bangladeshi energy giant Omera Petroleum. Omera already holds a 22% market share in liquefied petroleum gas (LPG), and the acquisition will increase that share. At the moment, Totalgaz owns about 5%
Sources from both businesses claim that $19 million will go toward stock in the purchase, with the remaining $13 million going toward assets and liabilities, including unpaid bank debts.

After months of intricate discussions, the deal was finalized. Resistance from local shareholders who own an 11% interest in Totalgaz Bangladesh occasionally hampered negotiations. However, after suffering yearly losses of Tk15–20 crore for a number of years, France-based Totalgaz was eager to leave the industry.
“Legal paperwork have been shared and agreed upon by both parties. A senior Omera official told The Business Standard, “We’ll sign the contract soon.”
A joint venture consisting of MJL Bangladesh (62%), BB Energy (Asia) Pte Ltd (25%), and Dutch development bank FMO (13%), Omera Petroleum is the owner of Omera LPG.

Totalgaz quickly rose to become one of the top three importers and marketers of LPG after entering Bangladesh in 2002. It lost momentum, meanwhile, to regional firms who made significant investments in a market that was entirely reliant on imports.
In addition to importing, storing, bottling, and marketing LPG in 12 kilogram, 15 kg, and 33 kg cylinders, Totalgaz also provides bulk supplies for industrial applications. Additionally, the corporation operates a secondary facility in Bogura and a terminal with a capacity of 100,000 tons in Sitakunda.

The LPG industry in Bangladesh has seen significant change since 2010, when demand was only about 70,000 tonnes. It currently stands at about 1.7 million tonnes per year, with an annual growth rate of 15-20%. By 2030, it is expected to reach 3 million tonnes.
The change accelerated in the early 2000s when the government restricted new pipeline connections and promoted the use of LPG due to worries about the depletion of natural gas reserves. There have been 58 LPG licenses granted since 2009.

Large corporations have joined the battle, including City Group, Beximco, Meghna, Jamuna Spacetech, and Bashundhara Group. However, some businesses are under stress due to increased operating costs and fierce pricing rivalry, which includes free cylinder offers. Many of them are currently looking to leave the company because of mounting debt and unsustainable subsidies.