Indian co proposes exporting LNG

India's H-Energy has proposed exporting re-gasified LNG to Bangladesh to help run a state-owned 800-megawatt (MW) combined cycle power plant at Rupsha in the southern Khulna region.

In its proposal that reached last week, the H-Energy also showed interest to build the cross-country re-gasified LNG (liquefied natural gas) carrying pipeline at its own cost, managing director of state-owned North-West Power Generation Company Ltd (NWPGCL) AM Khurshedul Alam told the FE on Sunday.

The construction of a 118 kilometre-long pipeline--from Kolkata to Benapole (72 km) and Benapole to Jessore (46 km)-would be required to pump the re-gasified LNG from India into Bangladesh's national gas grid.

"We shall go over the fresh proposal from the H-Energy and take decision soon," he said.

Mr Alam said H-Energy is expected to build a floating, storage and re-gasification unit (FSRU) based LNG terminal in West Bengal's Digha area from where it would export the energy to Bangladesh.

He said that importing re-gasified LNG from India would help diversify the country's energy sources, which are crucial to ensuring the country's future energy security.

Currently state-run Petrobangla has been importing lean LNG from Qatar's RasGas and Oman's Oman Trading International (OTI) and re-gasifying the LNG in the floating LNG terminal on the Moheshkhali Island in the Bay of Bengal, which is now operational.

Petrobangla has also initiated deals with a total of 15 global suppliers to import LNG from spot market at a competitive price.

Mr Alam said his company has been in talks with H-Energy since early 2015 to import re-gasified LNG to run the power plant.

It aimed to import around 125 million cubic feet per day (mmcfd) equivalent of re-gasified LNG from H-Energy, which could be increased to 500 mmcfd and 1.0 billion cubic feet per day (Bcfd) in future, depending on requirement.

The North-West also held several rounds of talks then to facilitate import of LNG for the power plant in south-western Bangladesh.

But H-Energy's project had to face legal dispute afterwards, which was cleared recently following an order by Indian regulatory commission, he said.

Officials said several multilateral donors have agreed to provide a record US$800 million in loan to implement the power plant.

Of the total lending, the Asian Development Bank (ADB) will provide $600 million and Islamic Development Bank (IDB) would give $200 million for the plant.

The power plant would have two gas-fired units, each having 400 MW capacity to run on imported re-gasified LNG.

Bangladesh government would provide the remaining $150 million for its implementation.

The North-West has already invited bids from potential firms to build the re-gasified imported LNG-based combined cycle power plant.

Some 125 million cubic feet per day (mmcfd) of re-gasified LNG would be required to generate electricity from the proposed plant.

azizjst@yahoo.com