Global off-grid energy distributor SHV Energy is set to enter Bangladesh's growing market for liquefied petroleum gas (LPG) by acquiring local bottler and marketer Petromax LPG.

To this end, SHV Energy has already signed a purchase agreement and the process is expected to close by the next few months, it said in a press release.

In the meantime, Petromax will continue to operate out of Dhaka with the current team, it said.

SHV Energy, a family-owned multinational Dutch company, is yet another foreign firm which is entering the LPG market in Bangladesh.

Currently, a number of companies namely Total Gas, Omera, Aygaz LPG and LAUGFS Gas have foreign investments.

Bangladesh has over 25 LPG operators and the country's annual consumption is nearly 14 lakh tonnes currently. The amount of LPG consumption was nearly 3 lakh tonnes in the fiscal year 2015-16, according to industry insiders.

"We are excited to be entering the Bangladesh market and look forward to contributing to the further development of Petromax and the LPG industry as a whole," said SHV Energy Chief Executive Officer Bram Graber. 

Bangladesh will be a key market for SHV Energy, with a growing population and an important opportunity to help in the transition to LPG as a cleaner energy alternative than the more polluting fuels that are still widely in use, Graber said.

SHV Energy is a global distributor of off-grid energy such as LPG and LNG, and is active in the area of biofuels and renewable energy solutions, according to the press release.

Petromax Managing Director Faridul Alam said, "Carrying the proud legacy of our forty-year-old family business, we entered the LPG sector to explore business opportunities in the untapped market of Bangladesh."

"We proudly built and scaled an LPG downstream and cylinder production business from the ground up, establishing a foothold in this competitive space within a short timeframe of only four years. I am excited to see SHV Energy grow our vision further to new horizon," he said.