Intraco Investment Shift: CNG Station Exit for Bhola Gas Expansion

The Board of Directors of Intraco has made a new investment decision, opting to withdraw its investment from a CNG station operated by Intraco Automobiles.

According to information published on the Dhaka Stock Exchange (DSE) website, the lease agreement for the land on which the CNG station is located has expired. In light of this, the company has decided to discontinue operations at the station starting in the first week of March. As per the decision made in the board meeting held on February 27, Intraco Automobiles’ investment will be redirected to the Bhola Non-Pipe Gas Line Unit.

Notably, during the tenure of the previous government, Intraco Refueling Station was entrusted with transporting five million cubic feet of gas per day from Bhola in CNG form. Initially, the company started with a daily supply of five million cubic feet, with an agreement to gradually increase it to 25 million cubic feet per day. However, as Intraco failed to start supplying the additional 20 million cubic feet of gas by October last year, the remaining part of the agreement is no longer effective. Despite this, the company has expressed interest in expanding its production capacity.

To address the nation's gas crisis, gas from Bhola has been brought in CNG form for use in industrial plants since December 2023. It appears that Intraco Refueling is shifting its investment to the Bhola Non-Pipe Gas Line Unit to enhance supply capacity.

Over the past year, Intraco Refueling’s share price reached a high of BDT 47.30 and a low of BDT 13.50. In terms of cash dividends, the company declared 1% in 2024, 10% in 2023, 10% in 2022, 2% in 2021, and 5% in 2020.