H-Energy, established in 2009, has been a significant player in sustainable energy, focusing on LNG regasification terminals and cross-border pipeline projects in India
Bangladesh has reportedly cancelled a proposed agreement with the Hiranandani-led H-Energy group for importing regasified liquefied natural gas (LNG) from India, with New Delhi unlikely to intervene. The Mumbai-based H-Energy had planned to supply gas through a cross-border pipeline, offering an energy boost to Bangladesh, a nation with significant energy demands, reported livemint.com.
While Indian officials have confirmed their awareness of the situation, they have made it clear that India has no intention to interfere in the matter, viewing it as a business decision between Bangladesh and a private Indian company. “The government would not intervene in this matter. It concerns a private entity, and there are other issues to prioritize,” shared a senior official familiar with the developments.
Initially, Petrobangla, Bangladesh’s state-run oil company, was set to finalize agreements with H-Energy after four years of negotiations. The plan included the construction of a 65-km pipeline from Satkhira to Khulna, facilitating the delivery of 300 million cubic feet of LNG daily from India. However, reports now suggest that Excelerate Energy, a US company already operational in Bangladesh, is likely to take over, showing interest in expanding its LNG supply to Bangladesh.
The recent developments underscore the growing complexity of regional energy partnerships and the potential for new players to step into this evolving landscape
Bangladesh’s energy dynamics have seen additional shifts recently, with the interim government retracting agreements with both Excelerate and the domestic Summit Group for new regasification units. Petrobangla officials noted that Bangladesh already operates two Floating Storage and Regasification Units (FSRUs) under Summit Group and Excelerate Energy, with no immediate need for additional facilities.
The backdrop of this decision is a shifting political landscape in Bangladesh. India’s close relationship with the former government, led by the India-friendly Awami League under Sheikh Hasina, has been impacted as the country undergoes political change. In response, India has slowed plans for the India-Bangladesh Friendship Pipeline, originally designed to transport diesel from Siliguri in West Bengal to Parbatipur in Bangladesh, given the current regional tensions.
H-Energy has maintained silence regarding the cancellation, while queries to multiple stakeholders, including Petrobangla, the Bangladesh High Commission, and the US Embassy, remain unanswered. Meanwhile, Excelerate Energy’s CEO recently reiterated the company’s commitment to “ensure a smooth LNG supply” and invest in decarbonization projects in Bangladesh, indicating potential expansion efforts.
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