India’s H-Energy inks LNG deal with Petrobangla

India’s H-Energy said it has signed a memorandum of understanding with Bangladesh’s state-owned Petrobangla to supply the latter with regasified LNG.

H-Energy said on Wednesday that the duo would soon finalize a long-term agreement to start the supply of LNG to Bangladesh through a cross-border natural gas pipeline.

The energy firm, led by Darshan Hiranandani, said it has received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB), a regulatory body in India, to build, own and operate the pipeline.

The Kanai Chhata-Shrirampur natural gas pipeline would connect H-Energy’s planned Kukrahati LNG terminal in West Bengal to the Bangladesh border, to enable cross border supply of regasified LNG, it said.

The firm plans to launch the Kukrahati LNG terminal in 2023 with an initial capacity of 3 mtpa.

Moreover, H-Energy’s unit HE Marketing private would source LNG and supply it to Petrobangla.

Within Bangladesh, Petrobangla would deliver the fuel to gas-based power producers and other gas consumers, H-Energy said.

The Indian company will also soon launch its FSRU-based import facility in Jaigarh.

The 170,000-cbm FSRU Hoegh Giant, India’s first such vessel, will deliver natural gas to the 56 km Jaigarh-Dabhol pipeline connecting the LNG import terminal to the national gas grid.

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