Natural gas major Hiranandani Energy (H-Energy) has signed a memorandum of understanding (MoU) with Bangladesh’s Petrobangla for a long-term supply of re-gasified liquified natural gas (LNG).

The two firms will soon finalize a long term supply agreement to commence the supply of re-gasified LNG to Bangladesh through a cross border natural gas pipeline, H-Energy said in a statement.

Passing through various terrains, Kanai Chhata-Shrirampur pipeline connects H-Energy’s LNG terminal in West Bengal to the Bangladesh border.

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“This is a significant development as it also signifies the growing co-operation between India and Bangladesh,” a foreign policy watcher said.

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 report said.

H-Energy is the only company to have received authorization by the Petroleum and Natural gas Regulatory Board (PNGRB) — the regulatory body in India, to lay a pipeline till Bangladesh border.

“This is a key milestone in the future of Indo-Bangladesh energy cooperation," Darshan Hiranandani, CEO of H-Energy said in a statement. “Our objective is to deliver environmentally friendly, safe, and economical energy to the state of West Bengal and to Western Bangladesh,” he added.

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Meanwhile, Rystad Energy, an independent energy research and data company, said that  the world’s LNG production is expected to reach 672 Mt in 2040, a 79 per cent growth from 2020 numbers.

LNG demand in India is expected to increase from 25 million tonnes per annum (mtpa) in 2020 to almost 45 mtpa in 2030.

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