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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement