India Holds Energy Dialogue with Bangladesh, Sri Lanka
India held discussions with Sri Lanka and Bangladesh on cooperation in wide variety of energy related areas, the government said in a statement October 5.
Indian oil minister Dharmendra Pradhan met Sri Lankan prime minister Ranil Wickremesinghe and discussed various Indian proposals, including utilisation of Upper Tank Farm by Lanka IOC (LIOC) in Trincomalee, setting up of LNG terminal at Kerawalapitiya, near Colombo by Petronet LNG, setting up of city gas distribution network by GAIL and use of CNG in the automotive sector in Sri Lanka, with Ceylon Petroleum Corporation as local partner. Pradhan also discussed exploration activities in Mannar basin and participation of Indian state owned firms on nomination basis.
With environment in mind, Sri Lanka is looking to promote greater use of natural gas. The government wants to move away from coal based power plants to LNG based ones. For the south Asian island nation sharp fall in LNG prices in last one year has made it attractive to pursue gas based power generation. Recently, Colombo said it wants to source LNG from Qatar, world’s biggest exporter of the super chilled fuel.
India-Bangladesh delegations in New Delhi (Credit: Indian government)
Pradhan also met with Bangladesh state minister for energy Nasrul Hamid. Hamid's visit is a follow up of visit to Bangladesh by Pradhan led delegation in April this year.
The ministers also discussed the status of various Indian proposals that have been shared with the Bangladeshi side, including the setting up of LPG import terminal at Chittagong by Indian Oil Corporation Ltd (IOCL) and onshore LNG terminal by Petronet LNG in Kutubdia Island near Chittagong. PLL is finalising an MoU with Petrobangla on setting up of the LNG terminal, the Indian government said. Both sides also discussed the possibility of supplying gas through a pipeline from Dhamra LNG terminal which is under construction to Bangladesh via Duttapulia in West Bengal.
Like Sri Lanka, Bangladesh is looking to increase the use of natural gas in the country. In July, Excelerate Energy, Petrobangla, and the Government of Bangladesh signed the final agreement for the construction and operation of Bangladesh's first LNG import terminal –Moheshkhali Floating LNG. The government is also encouraging foreign firms to develop the country's natural gas resources. Last week, Petrobangla invited expressions of interest from international bidders to explore oil and gas resources from Bangladesh Deep Sea Blocks DS-10 and DS-11 and Shallow Sea Block SS-10 under the Speedy Supply of Power and Energy (Special Provision) Act, 2015.
Shardul Sharma