Two Indian energy companies intend to export re-gasified liquefied natural gas (RLNG) to Bangladesh within the next few years after laying two separate pipelines totalling 265 kilometres.
RLNG will be supplied to distinct Bangladeshi organisations by the private company H-Energy and the Indian state-run GAIL after the gas is imported from foreign providers.
H-Energy from India is about to ink a contract with Petrobangla, the state-owned oil, gas and mining corporation of Bangladesh; in the meantime, GAIL is closing a re-gasified LNG sales agreement with Dipon Gas Company, a private company in Bangladesh.
Market observers link the Indian firms’ action to the country’s slow domestic LNG consumption over the last few years.
Neighbouring India imported around 23.3 million tonnes (mt) of LNG during the fiscal year of 2023-2024 (April-March), which is a 7.17 per cent decrease compared to the country’s peak LNG import volume of 25.1 mt in FY 2020-21, according to India’s Petroleum Planning and Analysis Cell (PPAC).
India’s GAIL and H-Energy will primarily export a combined total of around 1.6-2.0 million tonnes per annum (MTPA) of re-gasified LNG, which could be expanded through mutual negotiations.
H-Energy, a subsidiary of the Hiranandani Group, intends to supply half of the total, or 0.8-1.0 MTPA, while GAIL will handle the remaining half of 0.8-1.0 MTPA.
Dipon Gas and GAIL have not yet finalised the benchmark for setting RLNG prices.
For a similar reason, Petrobangla and the Indian Oil Corporation (IOCL) also signed an agreement in the year 2018. But since then, nothing has changed about this arrangement.
