Dhaka: Bangladesh and India on Monday reached an understanding on a number of issues in the field of energy cooperation between the two neighbouring nations.

The issues include setting up a joint LPG terminal in Chittagong, Bangladesh's import of re-gasified LNG from India and mutual cooperation in offshore survey in maritime area, Bangladesh's import of liquid petroleum through pipeline from India.

The two sides reached the understanding during a meeting between visiting Indian State Minister for Petroleum and Natural Gas Dharmendra Prodhan and Bangladesh State Minister for Power and Energy Nasrul Hamid.

At the meeting, Dhaka formally proposed India to import 70 million cubic feet of gas per day (mmcfd) from Tripura to meet the country’s growing energy demand.  

‘We've requested India to consider whether they could connect their gas field in Tripura with our network and we sought 70 mmcfd of gas to meet our demand in Chittagong. The Indian state minister has assured us of getting back after discussions with his government,’ Nasrul Hamid said while briefing on the proceedings of the bilateral meeting of the delegations of the two neighbouring nations.  

Dharmendra, who arrived here on Sunday on a three-day visit, said: ‘I assured the Bangladesh state minister of discussing with my government and getting back here.’

He also said he has to first check Indian gas system and analyse the matter. ‘But I'm looking forward to greater energy cooperation,’ he told reporters.

The Indian state minister witnessed the signing of a deal between two state-owned companies -- Bangladesh Petroleum Corporation and Indian Oil Company Limited (IOCL) -- for setting up a joint LPG terminal in Chittagong.  

The plant will be set up to supply LPG to northern Indian states which are known as seven sisters. If feasible, the LPG will be marketed in Bangladesh, too.

During the formal meeting between the two sides, both the ministers informed that they discussed a wide range of matters in the energy cooperation.  

India proposed Bangladesh to set up the LNG terminal in Maheshkhali under a 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 under a 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.  

Bangladesh has sought Indian cooperation in the form of providing scholarship to Bangladeshi students in Indian institutions for study on petroleum and mining engineering.

‘We’re especially thinking about the students of Jessore University of Science and Technology for such scholarship as Bangladesh needs more such students,’ said Nasrul Hamid.

Bangladesh state-owned Eastern Refinery Limited (ERL) will sign a contract with Indian company Engineers' India Limited (EIL) to set up the second unit of the Bangladeshi refinery. Both the state ministers will witness the deal.