JAKARTA (RambuEnergy.com) – Indonesia and Bangladesh have signed memorandum of understanding (MoU) to boost energy cooperation between the two countries. The deal was signed last Friday (Sept 15).
The plan cooperation including allowing Indonesia, in this case Pertamina, to supply LNG to Bangladesh as well as opportunities to develop oil and gas infrastructure such as floating storage and regasification unit (FSRU), pipeline transmission as well as power plants.
The MoU was signed by Indonesia’s Energy and Mineral Resources Minister Ignasius Jonan and his Bangladesh counterpart Nasrul Hami. Also attending the MoU signing were Yenni Andayani, director for gas of Pertamina and President Director of Petrobangla, Abul Mansur Md Faizullah.
The G to G MoU will provide legal basis for the two state owned companies to explore business opportunities. Yenni said Pertamina has sent letter of expression of interest (EOI) to develop an integrated LNG to power to the Bangladesh energy ministry on August 31, 2017.
Pertamina has also taken initiative to form a consortium comprising of Pertamina, international partner and Bangladesh firm. The consortium, she said, is preparing unsolited electricity solutino proposal to the Bangladesh energy ministry.
The expansion to Bangladesh is part of Pertamina’s international expansion plan. Minister Nasrul Hamid of Bangladesh said the cooperation with Indonesia aims to cut gas deficit in Bangladesh, which is expected to increase from projected 1 million tons of gas per annum in 2018 to 11 MTPA in 2030.
Indonesia also plans to export LNG to Bangladesh which has sparked criticism from some observers, arguing that Indonesia still in short of LNG to meet domestic growing demand. (*)