Petrobangla in collaboration with Petonet LNG, India will set up a Liquefied Natural Gas Infrastructure Development Project at an estimated cost of $950 million.
The project includes setting up a LNG re-gasification terminal at Kutubdia Island along with gas pipeline to carry the re-gasified LNG, sources said on Thursday.
A Memorandum of Understanding was signed between Petronet LNG Limited, India and Bangladesh Oil, Gas and Mineral Corporation in this regard at Petrobangla Bhaban in Dhaka on Thursday.
Prabhat Singh, managing director and chief executive officer of Petronet LNG and Syed Ashfaquzzaman, secretary, Bangladesh Oil, Gas and Mineral Corporation signed the agreement on behalf of their respective sides.
The high commissioner of India to Bangladesh, Harsh Vardhan Shringla and energy secretary Nazimuddin Chowdhury, among others, were present on the occasion.
The capacity of the terminal is expected to be 7.5 MMTPA (1000 MMSCFD). It will be completed in four years with provision for future expansion and can also be used to supply LNG through small barges and LNG trucks to users which are not connected by gas grid.
The project will bring both direct and indirect employment and will further enhance the economic development of Bangladesh.
The implementation of the project will be the starting of new era and will bring long lasting benefit for the people of Bangladesh, the sources added.
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