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R-LNG import from India thru pipeline


Published : 12 Jan 2022 10:27 PM | Updated : 12 Jan 2022 10:27 PM

Petrobangla – the Oil, Gas and Mineral Corporation of Bangladesh has taken an initiative to import Re-gasified Liquefied Natural Gas (RLNG) from India to meet the country's gas crisis

The gas will be imported through Satkhira border under a long-term agreement using a cross-border transmission line. To this end, discussion is underway with two Indian companies -- Indian Oil Corporation Limited (IOCL) and Hiranandani Energy (H-Energy). 

State-owned Rupantarita Prakritik Gas Company Limited (RPGCL) is working to prepare a proposal, which will be submitted to the Energy and Mineral Resources Division soon, according to a Petrobangla official.

After receiving the proposal, discussions will be started with India in this regard, the official said.

When contacted RPGCL General Manager (LNG) Md Rafiqul Islam told Bangladesh Post, “Technical committee is working to import RLNG from India. We hope the committee will submit a report soon. The final decision will be taken after discussions between the two countries. But, it will take some time.”

“However, there are also plans to import gas from LNG terminals of two Indian companies. Negotiation with IOCL has advanced a far. Besides, discussions are also going on with another Indian company H-energy,’ he added. 

Sources said that a meeting of the Energy Division on LNG was held in November last year. At the meeting, the Gas Transmission Company Limited (GTCL) informed that the supply of RLNG should be ensured to provide uninterrupted gas supply to the country in the future.

During the meeting, RPGCL Managing Director Zaved Chowdhury said that necessary information would be sent to the Energy Divsion soon after analysing the financial issues regarding the import of RLNG from India through the cross-border pipeline.

Energy expert Prof Izaj Hossain told Bangladesh Post that if the price is affordable then importing RLNG from India will be profitable for Bangladesh. However, in this case, the country's interests must be given priority during making an agreement with India.

‘Currently Bangladesh is importing 1160 MW of electricity from India. Discussion is underway to import more electricity. So, it is dangerous to be more dependent on India for these two major commodities -- electricity and gas. This issue must be taken care of,’ he added. 

Mr Hossain said, “However, the import of RLNG will alleviate the temporary gas crisis in the country. But in the long run it will be harmful for the country. Therefore, we need to intensify gas exploration activities inside in our country.”

Petrobangla had inked a memorandum of understanding (MoU) with Mumbai-based Hiranandani Energy (H-Energy) on June 16 last year for long-term import of regasified LNG from India through a cross-border natural gas pipeline.

Earlier, Petrobangla had signed the first agreement with Indian Oil Corporation Ltd (IOCL) in 2018 for the same purpose. 

H-Energy will build and operate Kanai Chatta-Shrirampur natural gas pipeline, which will connect H-Energy's LNG terminal in West Bengal to Bangladesh through various regions of the state for enabling cross- border supply of regasified LNG.

The H-Energy company said they have been authorised by India’s Petroleum and Natural Gas Regulatory Board to build, own and operate the Kanai Chhata-Shrirampur natural gas pipeline connecting the company’s LNG terminal in West Bengal to the Bangladesh border. 

At present, besides production at domestic gas fields, Bangladesh imports LNG through two private Floating Storage and Re-Gasification Units (FSRU) – which have a capacity to supply 1,000 mmcf gas per day.

As per contract obligation, Petrobangla pays roughly $237,000 per day to Excelerate and $217,000 to Summit everyday in the form of capacity payment, even if Bangladesh takes less volume of LNG, said a Petrobangla official.

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