New Delhi: India is aware of reports that Bangladesh has canceled a proposed deal with Darshan Hiranandani-led H-Energy group to supply gas, but New Delhi is unlikely to intervene in the matter.

The Mumbai-based company was to supply regasified liquefied natural gas (LNG) to the energy-deficient neighbour.

Bangladeshi newspaper The Business Standard reported in April that state-owned Petrobangla is close to signing deals to import regasified LNG from a private Indian company via a cross-border gas pipeline.

However, a recent report on Twitter suggested that the Bangladesh government is planning to cancel the project and imports after a US company, Excelerate Energy, which already has operations in Bangladesh, showed interest in expanding its supplies to the country.

‘New Delhi is aware’

New Delhi is “aware” of reports about Hiranandani-led H Energy and Bangladesh, a senior official aware of the developments said.

“The (Indian) government would not intervene in this matter. This is a private company. There are several other important issues that can be addressed,” the official added.

According to The Business Standard’s April report, after four years of negotiations, Petrobangla was to enter into two agreements with H-Energy for laying of pipelines and supply of LNG.

Discussions were taking place on the payment mechanism, management of the gas pipeline and the price of LNG.

According to the report, a 65 kilometer gas pipeline was to be laid from Satkhira to Khulna in Bangladesh to transport gas from India. The plan was to import 300 million cubic feet per day of LNG through the pipeline.

The same newspaper reported last month that Excelerate CEO Steven Kobos had met Bangladesh’s chief adviser Professor Muhammad Yunus, who heads the interim government, in Dhaka in mid-October.

Kobos quoted Kobos as saying that the company wants to “increase and ensure a smooth supply of liquefied natural gas” to the country. He said the company also plans to invest in decarbonization projects in Bangladesh, citing a press release issued on October 15.

However, on October 17, a second Bangladesh newspaper, The Daily Star, quoted Petrobangla officials as saying that the interim government had decided not to sign an agreement with Excelerate Energy to build another liquefied natural gas (LNG) regasification plant. .

He said an Excelerate delegation led by former US ambassador to Bangladesh Peter D. Haas, who is now Excelerate’s strategic advisor, had met Petrobangla officials. “Petrobangla has canceled a memorandum of understanding (MoU) to sign the agreement,” the newspaper said, quoting Petrobangla officials.

The Bangladesh team was led by Petrobangla Chairman Zanendranath Sarker.

The Daily Star quoted Petrobangla officials as saying Dhaka had canceled yet another deal, with domestic group Summit, to build a floating storage and regasification unit (FSRU).

He said there are currently two FSRUs in Bangladesh: one run by Summit Group and the other by Excelerate Energy. The same two companies had plans to start one more FSRU each, which are now cancelled.

“The previous government awarded the works under the controversial Rapid Improvement of Electricity and Power Supply Act, 2010 without any bidding process,” it quoted a senior Petrobangla official.

H-Energy declined to comment on the issue, while queries mailed to the Union Petroleum Minister, External Affairs Minister, Petrobangla, Excelerate Energy and the Bangladesh High Commission in Delhi and the Embassy of United States in Dhaka remained unanswered as of press time.

The spokesperson for the US Embassy in New Delhi responded: “I would have to refer you to the companies involved to discuss their interests. We have nothing on this from the Embassy.”

H-Energy was established in 2009 to operate in the sustainable energy space. It is currently developing LNG regasification terminals and cross-country gas pipelines on the east and west coast of India. Through its marketing arm, it also offers end-to-end natural gas solutions, including LNG bunkering, regasification facilities and onward deliveries based on customer preferences, according to the company’s website.

The development comes at a time when India-Bangladesh relations are at a critical juncture following the overthrow of the Awami League government led by India-friendly Sheikh Hasina.

India has important energy ties with its eastern neighbor.

Mint had reported on September 1 that India’s plan to further expand the India-Bangladesh Friendship Pipeline (IBFP) carrying diesel to its neighbor has gone on the slow lane amid the political crisis in the neighboring country. .

There was a proposal to extend the 131 kilometer pipeline beyond Parbatipur in Bangladesh, where it currently ends. However, the government has now pressed the pause button on this.

The cross-border oil pipeline inaugurated in March last year by Prime Minister Narendra Modi and his former Bangladeshi counterpart Sheikh Hasina runs from Siliguri in West Bengal to an oil depot at Parbatipur in Bangladesh’s Dinajpur district.