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    India to Build Gas Pipe to Bangladesh

Summary

Indian federal cabinet has approved signing of framework of understanding on cooperation in the hydrocarbon sector with Bangladesh.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, News By Country, Bangladesh, India

India to Build Gas Pipe to Bangladesh

India's federal cabinet has approved the signing of framework of understanding on cooperation in the hydrocarbon sector with Bangladesh. 

The objective of the proposed FoU, which is non-binding and will be valid for five years, is to establish a cooperative institutional framework mechanism to facilitate and enhance India-Bangladesh bilateral cooperation in the hydrocarbon sector, the Indian government said April 13. 

Meanwhile as part of the FoU, India plans to build pipelines to carry diesel and natural gas to Bangladesh, Press Trust of India reported April 13.  While a 131-km pipe will be laid from Siliguri in the state of West Bengal to Parbatipur in northern Bangladesh to transport diesel, a line from Dattapulia in West Bengal will take natural gas to Khulna, the third-largest city of Bangladesh.

India and Bangladesh signed a slew of agreements during Bangladeshi prime minister Sheikh Hasina's recent visit to India. Petronet LNG signed a final agreement to build an LNG terminal in Bangladesh while Reliance Power executed project agreements with Bangladesh Power Development Board (BPDB) for the first phase of a 750 MW combined-cycle power project at Meghnaghat, near Bangladesh's capital Dhaka.

Reliance also signed MoU with Petrobangla to set up 500mn ft3/d (5.17bn m3/yr) LNG terminal at Kutubdia Island.

Bangladesh has been facing severe shortage of energy, especially natural gas, as demand expands in sync with growing economy. Dhaka wants New Delhi to help in alleviating the energy problem. India too has reciprocated positively and agreed to extend all necessary help. In the last few years some high profile Indian officials have visited Bangladesh. Indian prime minister Narendra Modi visiting Bangladesh in 2015. Modi's visit was followed by India oil minister Dharemndra Pradhan last year. Both Modi and Pradhan said India was keen to have deeper energy ties with Bangladesh. In addition to Hasina's visit this month, other high ranking officials visit India last year to talk energy issues.   

 

Shardul Sharma