India's H-Energy, a natural gas company, has signed a memorandum of understanding (MoU) with Bangladesh's state-run Petrobangla for supply of re-gasified liquefied natural gas (LNG).

Both firms will finalise a long-term supply agreement to start the supply of LNG to Bangladesh through a cross-border natural gas pipeline.

H-Energy has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB), a regulatory body in India, to build, own and operate the pipeline.

The Kanai Chhata-Shrirampur natural gas pipeline will connect H-Energy's LNG terminal in West Bengal, passing through various regions of the state and connecting to the Bangladesh border.

H-Energy’s wholly-owned subsidiary HE Marketing will be responsible for sourcing LNG and supplying R-LNG to Petrobangla.

The company will commission its floating storage and regasification unit (FSRU) at the Jaigarh port in Maharashtra in July 2021. The terminal, which has been delayed on several occasions, is planned to be capable of handling four million tpa.

H-Energy is also constructing LNG re-gasification terminals on the east coast of India at Kakinada, Andhra Pradesh and Kukrahati, West Bengal.