The Emirates National Oil Company (ENOC) and the Bangladesh Petroleum Company (BPC) signed a deal to conduct a feasibility study on a liquefied petroleum gas (LPG) terminal in the country, Reuters reported.

“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,” said Sayed Mohammad Mozammel Haque, a director of state-owned BPC.

“This is a positive step. After the study, we will finalize the capacity for the terminal and other related things,” he told Reuters.

The majority of Bangladesh’s LPG imports currently come from Oman and Qatar.

The construction of the terminal could reduce LPG transportation costs from $100 per ton to $30 per ton as it would allow big ships to anchor, meaning a 10% lower price for end-users, Haque added.

Limited natural gas supplies have prompted the Bangladesh government to encourage households to use LPG.

Current LPG demand in Bangladesh stands at 1 million tons against a supply of 600,000 tons, with demand rising to up to 2 million tons by 2022, the official added.