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Bangladesh has signed a memorandum of understanding with India to allow local private operators to export imported LPG in bulk to their northeastern states. The operators would add value to the entirely imported LPG and export around 10,000 tonnes annually to the seven sister states. The private operators of Bangladesh are currently importing 9.5 lakh tonnes of LPG annually to meet the domestic demand against their total marketing capacity of not less than 25 lakh tonnes. The operators welcome the decision as they consider it would facilitate them utilizing the surplus capacity to some extent while experts believe that the marginal export is unlikely to create any adverse impact on the domestic market. The critics, however, termed it as anti-state decision and demanded its immediate cancellation. Meanwhile, the energy sector cooperation between the two countries is growing gradually. Bangladesh is now importing around 1,160 MW of electricity while talks are maturing about importing RLNG from India through pipeline, work on importing diesel from Indian refinery is progressing and an MOU has been concluded for constructing a power transmission line from Assam to Bihar across Bangladesh. Against this backdrop, there should not be any confusion over LPG export to India.

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