Natural gas major Hiranandani Energy (H-Energy) has signed a memorandum of understanding (MoU) with Bangladesh’s Petrobangla for a long-term supply of re-gasified liquified natural gas (LNG).
The two firms will soon finalize a long term supply agreement to commence the supply of re-gasified LNG to Bangladesh through a cross border natural gas pipeline, H-Energy said in a statement.
Passing through various terrains, Kanai Chhata-Shrirampur pipeline connects H-Energy’s LNG terminal in West Bengal to the Bangladesh border.
“This is a significant development as it also signifies the growing co-operation between India and Bangladesh,” a foreign policy watcher said.
H-Energy said it has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB), a regulatory body in India, to build, own and operate the pipeline, the report said.
H-Energy is the only company to have received authorization by the Petroleum and Natural gas Regulatory Board (PNGRB) — the regulatory body in India, to lay a pipeline till Bangladesh border.
“This is a key milestone in the future of Indo-Bangladesh energy cooperation," Darshan Hiranandani, CEO of H-Energy said in a statement. “Our objective is to deliver environmentally friendly, safe, and economical energy to the state of West Bengal and to Western Bangladesh,” he added.
Meanwhile, Rystad Energy, an independent energy research and data company, said that the world’s LNG production is expected to reach 672 Mt in 2040, a 79 per cent growth from 2020 numbers.
LNG demand in India is expected to increase from 25 million tonnes per annum (mtpa) in 2020 to almost 45 mtpa in 2030.
H-Energy is also constructing LNG re-gasification terminals on the east coast of India at Kakinada, Andhra Pradesh and at Kukrahati, West Bengal.