BP and Reliance Industries Ltd. (RIL) will form a joint venture (JV) to set up petrol pumps and retail aviation turbine fuel (ATF).

The joint venture will include a retail service station network across India, said both the companies in a joint statement without disclosing the deal amount.

RIL will hold 51% in the JV while BP will have the remaining 49% stake.

Building on RIL’s existing Indian fuel retailing network and an ATF business, the partners expect the JV to expand rapidly to help meet India’s fast-growing demand for energy and mobility.

India is expected to be the fastest-growing fuel market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost sixfold over the period.

The JV will incorporate and build on RIL’s current fuel retailing network of over 1,400 sites across India, which the partners aim to grow rapidly to up to 5,500 sites over the next five years.

The JV will also include RIL’s aviation fuels business, which currently operates at over 30 airports across India, providing participation in this rapidly-growing market.

Mukesh Ambani, CMD, RIL and BP’s CEO Bob Dudley signed heads of the agreement for the venture on Tuesday.

Mr. Ambani said: “Our robust partnership in developing gas resources in India has now expanded to fuel retailing and aviation fuels. This transformative partnership will deepen our engagement with the consumers in further enhancing the world-class services across the country.”

Mr. Dudley said: “BP is already a large investor here and we see further attractive, strategic opportunities to support this growth.

“Together we will work to provide consumers across India the high-quality fuels, convenience retail and services they need, continuing to drive modernisation and mobility solutions across the country,” he added.

BP will bring its international experience in convenience and fuel retailing and aviation operations. Castrol lubricants will also be available across the venture’s network. The venture will seek to expand its reach, broadening access through mobile fuelling units and providing packaged fuels to customers, including home-delivery, said the statement.

It is anticipated that final agreements will be reached during 2019 and subject to regulatory and other customary approvals, the transaction will be complete in the first half of 2020.