Bangladesh government considers RLNG imports from India
POWER & RENEWABLE ENERGY

Bangladesh government considers RLNG imports from India

The Bangladesh government announced its plans to import re-gasified liquefied natural gas (RLNG) from India via a cross-border pipeline as part of a contingency plan to ensure a stable fuel supply amidst global energy market fluctuations. State Minister for Power, Energy, and Mineral Resources (MPEMR), Nasrul Hamid, disclosed that an initial bid involves importing around 300 million cubic feet per day (mmcfd) from India's H-Energy by 2025.

He mentioned that the state-run Petrobangla would also receive an additional 200 mmcfd of gas from private company Dipon Gas. Dipon Gas plans to import approximately 500 mmcfd of RLNG from India and would sell the remaining 300 mmcfd to private consumers.

This marks the establishment of a second cross-country pipeline between India and Bangladesh for energy transportation. The first pipeline has been transporting diesel from India since its inauguration on March 18. H-Energy, a subsidiary of Hiranandani Group in India, plans to supply RLNG from Digha in West Bengal to Khulna in Bangladesh through a 275-kilometer cross-border pipeline.

Petrobangla had signed a memorandum of understanding (MoU) with H-Energy a couple of years ago to import RLNG equivalent to approximately 1.0 million-tonne per annum (MTPA) to feed the 800MW Rupsha combined-cycle power plant owned by the state-owned North West Power Generation Company Ltd (NWPGCL) for 22 years. The Indian company also has the option to increase the RLNG supply to around 2.0 MTPA.

Before the H-Energy agreement, India's state-owned Indian Oil Corporation Ltd (IOCL) had also signed an MoU to supply RLNG to Bangladesh. The under-construction 800MW plant at Rupsha in Khulna will be the major consumer of the imported fuel, requiring around 130 mmcfd RLNG to generate electricity, while the remaining natural gas could be supplied to the national grid.

To fund the Rupsha power-plant project with two gas-fired units, each having a 400MW capacity, the Asian Development Bank (ADB) agreed to lend $ 600 million, and the Islamic Development Bank (IDB) around $200 million. The Bangladesh government intends to provide the remaining $150 million.

In addition to RLNG imports, Bangladesh plans to increase LNG imports. Mr. Hamid stated that Bangladesh aims to sign more sale and purchase agreements (SPAs) with suppliers. Proposals from Nigeria and several other countries have been received for SPAs to supply LNG under long-term arrangements.

Recently, Petrobangla signed two new SPAs with QatarEnergy and OQ Trading of Oman to import up to 3.0 MTPA of additional LNG from 2026 onwards. The cabinet committee on economic affairs also approved signing three more new SPAs to import LNG under long-term deals from Malaysia's Perintis Akal Sdn Bhd, local Summit Oil and Shipping Company. (SOSCL), and Excelerate Energy Bangladesh Ltd, a subsidiary of the US-based Excelerate Energy.

The Bangladesh government announced its plans to import re-gasified liquefied natural gas (RLNG) from India via a cross-border pipeline as part of a contingency plan to ensure a stable fuel supply amidst global energy market fluctuations. State Minister for Power, Energy, and Mineral Resources (MPEMR), Nasrul Hamid, disclosed that an initial bid involves importing around 300 million cubic feet per day (mmcfd) from India's H-Energy by 2025. He mentioned that the state-run Petrobangla would also receive an additional 200 mmcfd of gas from private company Dipon Gas. Dipon Gas plans to import approximately 500 mmcfd of RLNG from India and would sell the remaining 300 mmcfd to private consumers. This marks the establishment of a second cross-country pipeline between India and Bangladesh for energy transportation. The first pipeline has been transporting diesel from India since its inauguration on March 18. H-Energy, a subsidiary of Hiranandani Group in India, plans to supply RLNG from Digha in West Bengal to Khulna in Bangladesh through a 275-kilometer cross-border pipeline. Petrobangla had signed a memorandum of understanding (MoU) with H-Energy a couple of years ago to import RLNG equivalent to approximately 1.0 million-tonne per annum (MTPA) to feed the 800MW Rupsha combined-cycle power plant owned by the state-owned North West Power Generation Company Ltd (NWPGCL) for 22 years. The Indian company also has the option to increase the RLNG supply to around 2.0 MTPA. Before the H-Energy agreement, India's state-owned Indian Oil Corporation Ltd (IOCL) had also signed an MoU to supply RLNG to Bangladesh. The under-construction 800MW plant at Rupsha in Khulna will be the major consumer of the imported fuel, requiring around 130 mmcfd RLNG to generate electricity, while the remaining natural gas could be supplied to the national grid. To fund the Rupsha power-plant project with two gas-fired units, each having a 400MW capacity, the Asian Development Bank (ADB) agreed to lend $ 600 million, and the Islamic Development Bank (IDB) around $200 million. The Bangladesh government intends to provide the remaining $150 million. In addition to RLNG imports, Bangladesh plans to increase LNG imports. Mr. Hamid stated that Bangladesh aims to sign more sale and purchase agreements (SPAs) with suppliers. Proposals from Nigeria and several other countries have been received for SPAs to supply LNG under long-term arrangements. Recently, Petrobangla signed two new SPAs with QatarEnergy and OQ Trading of Oman to import up to 3.0 MTPA of additional LNG from 2026 onwards. The cabinet committee on economic affairs also approved signing three more new SPAs to import LNG under long-term deals from Malaysia's Perintis Akal Sdn Bhd, local Summit Oil and Shipping Company. (SOSCL), and Excelerate Energy Bangladesh Ltd, a subsidiary of the US-based Excelerate Energy.

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