India Expresses Willingness to Build LNG Terminal at Chittagong, Bangladesh
New Delhi is willing to build an LNG terminal at Chittagong, Bangladesh which will be used to supply gas to state in the north-eastern part of India.
Dhaka will discuss the matter before taking a final decision, Energy Bangla reported.
The issue was raised during a meeting of Bangladeshi and India officials in New Delhi. A delegation led by Bangladesh’s energy and resources division secretary Md Nazimuddin met with Indian officials.
Bangladesh is interested in importing gas from north east Indian state of Tripura via a pipeline. However, New Delhi is not interested in such a plan. Instead, India wants to export electricity from Tripura that is produced at a gas based plant, Energy Bangla reported.
Currently, Bangladesh is importing 100 MW of electricity from Tripura.
A number of Indian companies are eyeing the fast growing energy market in Bangladesh. Anil Ambani led Reliance Power has got green light to build the first phase of LNG based power plant in Bangladesh. Government of Bangladesh has granted in-principle approval for the first phase of 750 MW power plant that will be set up at Meghnaghat (Narayanganj district), around 40 km South-East of Dhaka along with the FSRU terminal at Maheshkhali Island in Cox’s Bazar district of Bangladesh.
Another private sector entity, Adani Gas Ltd (AGL), the natural gas distribution arm of leading Indian private sector group Adani Enterprises, is looking to expand in the household gas markets in Bangladesh and eastern India. It has proposed to build a 650-km pipeline network that will connect the Adani Group's proposed LPG terminal at Dhamra port in Odisha to Asansol and Duttapulia in West Bengal. Duttapulia is near the Indo-Bangladesh border.
In addition to private sectors firms like Reliance Power and Adani, Indian state owned firms are also eyeing the Bangladesh power and energy markets. Earlier this year, Indian Oil Corporation (IOCL) and Bangladesh Petroleum Corporation (BPC) signed a memorandum of understanding (MoU) on broad aspects of cooperation in downstream oil and gas sector opportunities in Bangladesh.
The MoU paves the way for discussion on setting up LPG import terminal at coastal belt of Chittagong district, marketing of LPG and developing related infrastructure in Bangladesh, transportation LPG from Chittagong to Indian city of Tripura and any other form of hydrocarbon sector related cooperation of common interest as may be agreed by IOCL and BPC.
The MoU was signed during Indian oil minister Dharmendra Pradhan’s visit to Bangladesh from 17th to 19th of April.