Energy cooperation has been growing between India and Bangladesh as they adopted a joint declaration during the Indian prime minister’s visit to Bangladesh in 2015.
India’s north-eastern region has the excess refining capacity of petroleum products, offering New Delhi an opportunity to export to neighboring countries such as Myanmar, Bangladesh, and Nepal, according to the Telegraph.
To begin with, India will start building pipelines to carry diesel and natural gas to Bangladesh as the world’s third largest energy consumer.
It also enhanced the one step away to success by outlining steps to leverage such initiative has been the Hydrocarbon Vision 2030 for North East Region.
While a 131-km pipeline will be laid from Siliguri in West Bengal to Parbatipur in northern Bangladesh to transport diesel. Another pipeline from Dattapulia in West Bengal will take natural gas to Khulna, the third-largest city in Bangladesh. A 70-km pipeline will be laid to Khulna for moving the gas.
Only five kilometers of the pipeline will be on the Indian side and the rest on the Bangladesh side.
According to Indian Oil Secretary K D Tripathi, the pipelines are part of a non-binding Framework of Understanding (FoU) which India will enter into with Bangladesh for cooperation in the hydrocarbon sector.
During the visit of the Bangladesh Prime Minister Sheikh Hasina, a 15-year agreement to supply diesel to Bangladesh was signed.
India will bear the cost of laying the Indo-Bangla Friendship pipeline from Siliguri to Parbatipur, with a carrying capacity of 1 million tons of fuel a year.
Indian Oil Corp (IOC) is also looking to transport LPG to northeastern states via Bangladesh. As part of the cooperation, India is looking at setting up a liquefied natural gas (LNG) import terminal in Bangladesh by supplying diesel and selling LPG there.
Under the proposal, LNG will be imported at the under-construction Dharma terminal in Odisha and gas transported through pipeline up to Dattapulia in West Bengal.
A MoU for Petronet LNG Ltd to set up a Rs 5,000 crore LNG import terminal at Kutubdia islands in Bangladesh has also been signed during Hasina’s visit.