Govt plans to import R-LNG from India through pipeline

The government is considering an Indian company's proposal for supplying Refined-Liquefied Natural Gas (R-LNG) through a cross-border pipeline to import around 200 million cubic feet per day (mmcfd) equivalent of R-LNG from a 5.0 million tonnes per year (MPTA) capacity.
Bangladesh has no experience to deal with R-LNG. The Asian Development Bank (ADB) agreed to provide $600 million and Islamic Development Bank (IDB) assured of giving $200 million for the R-LNG fired power plant just to implement the plan.
"Yes, the state-run Petrobangla has inked a non-binding Memorandum of Understanding (MOU) with Indian H-Energy recently to import re-gasified LNG (R-LNG) through a cross-border pipeline. Earlier it inked a separate agreement with India's state-owned Indian Oil Corporation Ltd (IOCL) on behalf of BEXIMCO to import R-LNG," a senior official of the Energy Division told the Daily Observer preferring anonymity.
According to him a total of 118 kilometre-long pipeline from Kolkata-Benapole (72 km) and from Benapole-Jessore (46 km) will be required to pump the LNG from India into Bangladesh's national gas grid.
"We are working assiduously to promote the sub-region comprising Bhutan, Bangladesh, Nepal, Myanmar and India as an energy hub," Indian Foreign
Secretary Harsh Vardhan Shringla has made this comment while inaugurating the South Asia Group on Energy (SAGE) organised by the Research and Information System for Developing Countries (RIS) in New Delhi recently.
"Being the largest producer and consumer of energy in the region, it is natural for us to be the epicenter for any energy initiative in the region. We have to make energy affordable, accessible and clean," Shringla, former High Commissioner to Bangladesh remarked.
Several years back, the State owned North West Power Generation Company (NWPGCL) initiated the 800 megawatt (MW) gas-fired combined cycle power plant at Rupsha in Khulna region. This plant will be the major consumer of the imported R-LNG. The IOCL and H-Energy held several rounds of discussions over the past several years to supply R-LNG to the Rupsha power plant.
Multilateral donors have agreed to provide a US$800 million in loan to implement the power plant.
The H-Energy was keen to supply initially around 125 mmcfd of R-LNG, which it said could be increased to 500 mmcfd and 1.0 billion cubic feet per day (bcfd) from its 8.0 MPTA capacity LNG terminal at Digha of West Bengal.
The NWPGCL's 800 MW power plant will require around 130 mmcfd of RLNG to generate electricity.
The remaining gas could be supplied to the natural gas grid for consumption by other gas-guzzling consumers including industries and power plants.
"The companies will soon finalize a long-term supply agreement to commence the supply of R-LNG to Bangladesh through a cross-border natural gas pipeline. A portion of the piped gas may also be utilized in West Bengal. We are authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB), the regulatory body in India, to build, own and operate Kanai Chhata-Shrirampur natural gas pipeline connecting H-Energy's LNG terminal in West Bengal passing through various regions of the state and further connecting to the Bangladesh border," Darshan Hiranandani, CEO of H-Energy, said in a statement.
The bilateral hydrocarbon trade between Bangladesh-India stood at USD 337.3 million in 2019-20, he said.
"We are working assiduously to promote the sub-region comprising Bhutan, Bangladesh, Nepal, Myanmar and India as an energy hub," Indian Foreign Secretary Harsh Vardhan Shringla said.