Indian firm wants to sign gas sales deal with local co

Shamim Jahangir

24th June, 2019 09:44:29 printer

Indian firm wants to sign gas sales deal with local co

Indian energy giant, H-Energy, has proposed to sign a gas sales agreement (GSA) with state-owned North West Zone Power Generation Company Limited (NWPGCL) for supplying re-gasified Liquefied Natural Gas (LNG) to Bangladesh.

The Indian company has recently got a letter of intent (LoI) from Indian Petroleum and Natural Gas Regulatory Board for construction of LNG carrying pipeline between Kanaichatta of West Bangle and Shrirampur near Jossore border.

The pipeline will be 60-kilometers from Jessore of Bangladesh and 80-kilometers from Khulna.   

“We are now in a position to supply re-gasified LNG from our upcoming LNG terminal in Kukarahati in West Bengal to the various power plants of NWPGCL in Bangladesh,” said Manish Tiwary, chief commercial marketing officer of the H-Energy Gas Marketing Ltd to the NWPGCL Managing Director AM Khurshedul Alam recently.

He informed that the company will be able to supply natural gas to Bangladesh through Indo-Bangla gas pipeline. Bangladesh and India has already agreed to exchange of natural gas through bilateral cooperation.

The H-Energy is now developing two major LNG sites at Kakinda in Andhra Pradesh and Kukrahati in West Bengal for supplying the natural gas to Bangladesh. The company said they will supply natural gas to Bangladesh within 24 months once the GSA becomes effective.

Now, the NWPGCL will build a 3,600-megawatt power plant at Payra in Patuakhali, the largest in the country and first to be run by imported liquefied natural gas or LNG. The LNG-based mega power project will cost about US$2.80 billion.

The state-owned North-West Power Generation Company Limited (NWPGCL) and German based Siemens AG signed a joint development agreement (JDA) for implementing the plant late of last year. Of the total cost, about $2.40 billion is expected to come as loan while the rest $400 million will be equally shared by the NWPGCL and Siemens AG.

The first unit of the plant having capacity to generate 1200MW of electricity will come into generation by December, 2021 while another 2400MW in December, 2022.