Petrobangla signs LNG deal with India's H-Energy

India's H-Energy, a natural gas company, said late on Wednesday it has signed a memorandum of understanding (MoU) with Bangladesh's state-run Petrobangla for the supply of re-gasified liquefied natural gas (LNG).

It added that both firms will finalise a long-term supply agreement to start the supply of LNG to Bangladesh through a cross-border natural gas pipeline.

H-Energy said it has been authorised by 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 will connect H-Energy's LNG terminal in West Bengal, passing through various regions of the state and connecting to the Bangladesh border, it added.

H-Energy said its wholly owned subsidiary HE Marketing private will be responsible for sourcing LNG and for supplying R-LNG to Petrobangla.

The company added that it will commission its floating storage and regasification unit (FSRU) at the Jaigarh port in Maharashtra in July, this year.

The terminal, which has been delayed on several occasions, is planned to be capable of handing four million tonnes per year.

H-Energy is also constructing LNG re-gasification terminals on the east coast of India at Kakinada, Andhra Pradesh and at Kukrahati, West Bengal.