Indian energy firms including NTPC, Adani Power, Reliance Power and Petronet LNG, on Monday signed pacts for multi-billion dollar projects in Bangladesh as the two neighbours seek to strengthen economic ties and boost trade.
According to a government presentation, NTPC has signed a $3.15 billion pact to supply power to Bangladesh from Nepal, while Adani Power has signed a $2 billion agreement to supply power to Bangladesh.
Petronet LNG has signed a $1 billion agreement for LNG terminal in Bangladesh, and Reliance Power has tied up with Petrobangla to set up of $300 million LNG terminal.
Also, the Numaligarh Refinery will buy gas and oil from Bangladesh Petroleum Corp.
To facilitate the project finances, India’s Exim Bank will extend $1.6 billion for the power project in Bangladesh.
Thanking the Bangladesh government for allowing transit of petroleum products through its territory to Tripura to address the recent emergency situation in the state, petroleum minister Dharmendra Pradhan said, “We are revamping, refurbishing and expanding Eastern Refinery Ltd in Bangladesh.”
He added that ONGC Videsh is in advanced level of exploration activities in Chittagong and the company is expected to produce results benefiting both nations.
To support regional energy connectivity, India will supply R-LNG to Bangladesh from an upcoming facility in Odisha to the Khulna power plant.
“We are committed to partner with Bangladesh in meeting its petroleum demands, and participating in their goal of ‘Power to All’ by 2022,” Pradhan said.
On April 8, Prime Minister Narendra Modi announced a new concessional line of credit of $4.5 billion for the implementation of projects in priority sectors for Bangladesh.
The new LoC takes India’s assistance to Bangladesh to more than $8 billion dollars over the past six years. “Energy security is an important dimension of our development partnership,” Modi said at a joint press conference with Bangladesh Prime Minister Sheikh Hasina.