Bangladesh signed a memorandum of understanding (MoU) with India for establishing a Liquefied Petroleum Gas (LPG) plant in Chittagong under a joint venture.
The MoU was signed between Bangladesh Petroleum Corporation (BPC) and Indian Oil Corporation Limited (IOCL) for setting up the country`s largest ever LPG plant.
BPC chairman Md Mahmood Reza Khan and IOCL chairman B Ashok singed the MoU to set up the LPG plant to fulfill growing energy demand and ensure energy security in Bangladesh.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Indian State Minister for Petroleum and Natural Gas Dharmendra Pradhan witnessed the signing ceremony.
After MoU singed two state ministers of both countries spoke at press briefing at a city hotel on Monday.
Bangladesh and India have made mutual understandings on a number of issues in the field of energy cooperation between the two nations.
In the meeting Dhaka has formally proposed India to import 70 million cubic feet gas per day (mmcfd) of natural gas from Tripura to meet the country’s growing energy demand.
"We have requested India to consider whether they could connect their gas field in Tripura with our network and we sought 70 mmcfd gas to meet our demand in Chittagong. The Indian state minister has assured to get back after discussing with his government", Nasrul Hamid told reporters while briefing on the proceedings of the bilateral meeting of delegations of two neighboring nations.
Dharmendra, who arrived here on a three-day visit on Sunday, said: "I assured the Bangladesh state minister for discussing with my government and getting back here".
He also said that he has to first check Indian gas system and analyse the matter. But I am looking forward to greater energy cooperation, he told reporters.
The plant will be set up in order to supply LPG to northern Indian states which are known as seven sisters. But if feasible, the LPG will be marketed in Bangladesh as well.
India has proposed Bangladesh to set up the LNG terminal in Moheshkhali in joint venture for which Bangladesh has already floated tender and an Indian company has participated in it.
"Now we want to set up the LNG plant in joint venture. We agreed that Indian company Petronet India will submit an offer for it and Bangladesh will conduct feasibility on it within two months," said the Indian state minister.
Dharmendra, in his speech, said his country`s commitment to collaborate with Bangladesh in achieving the goal of `Power for all` by the year 2021 as outlined in the joint statement "Notun projonmo-Nayi disha" agreed upon during the visit of Prime Minister Narendra Modi to Bangladesh in June 2015.
Acting Secretary of the Energy and Mineral Resources Division Nazimuddin Chowdhury, Indian High Commissioner in Dhaka Harsh Vardhan Sringla and concerned officials from both the countries were present on the occasion.