Indian state-owned oil company has chalked out plan to supply liquefied petroleum gas (LPG) to the northeastern states through Bangladesh.
Sources concerned said the move will drastically cut the refiner’s freight cost and help in integrating the energy markets in the two Asian nations.
According to the Indian Oil Corporation plan, LPG gas will be supplied either from Paradip port in Odisha or from the Haldia port in West Bengal to the Chittagong port in Bangladesh.
Later, it could be moved by road to bordering Indian states like Tripura, Assam and Meghalaya.
Now, Indian government has to transport LPG in these states through a long-winding route covering the states of Bihar and Assam.
Indian Oil Corporation Chairman Sanjiv Singh said they are in advanced stages of talks with some of the Bangladesh companies to supply LPG to North East of India through Bangladesh.
"It is expected to improve LPG supply in northeast and boost the Bangladesh economy," he added.
“The efficiency gain will be huge. It is a win-win for everyone,” said Singh, adding that Chittagong has LPG import terminals, from where, Tripura is not far.
Indian Oil Corporation is exploring long term deals with Bangladesh companies for supplying LPG and other petroleum products.
A plan for setting up a large LPG import terminal in partnership with local companies, allowing large vessels to arrive in the Chittagong port, is also on the drawing board.
India’s ONGC Tripura Power Co. (OTPC) is already exporting power from Tripura to Bangladesh, reports, India-based Energy, Power, Oil and Infrastructure news portal Energy Infra Post.