Indian Petronet, Bangladeshi Petrobangla Sign LNG MoU

Indian Petronet LNG and Bangladeshi state owned Petrobangla December 29 signed a memorandum of understanding to set up LNG import infrastructure in Bangladesh.

The project includes setting up LNG re-gasification terminal at Kutubdia island along with gas pipeline to carry the regasified LNG, Indian high commission in Dhaka said in a statement. The capacity of the terminal is likely to be 7.5mn mt/yr at an expected project cost of $950mn. The project is expected to be complete in four years with provision for future expansion and can also be used to supply LNG through small barges and LNG trucks to users which are not connected by gas grid.

The MoU was signed by Prabhat Singh, managing director and CEO of Petronet and Syed Ashfaquzzaman, secretary, Petrobangla.

With local demand for gas rising, the Bangladesh government is working to improve the supply. Excelerate Energy earlier this month said it has completed the required geotechnical and geophysical studies for the Moheshkhali floating LNG terminal, Bangladesh's first import terminal. Excelerate executed definitive agreements with state-run Petrobangla in July this year.

Apart from importing LNG, the government is also interested in importing gas from Myanmar via pipeline and has sought India's assistance. 

Shardul Sharma