diff --git a/.env b/.env
new file mode 100644
index 0000000..7c78d61
--- /dev/null
+++ b/.env
@@ -0,0 +1,6 @@
+# This file stores variables used by build.yml and release.yml as build-args
+# If IMAGE_VERSION is updated then a new release 
+# will be created with that tag on merge to master
+
+TERAFOUNDATION_KAFKA_CONNECTOR_VERSION=1.2.1
+IMAGE_VERSION=1.2.2
\ No newline at end of file
diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index f15fc70..b08bee7 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -47,6 +47,13 @@ jobs:
         name: Get timestamp for docker build
         id: docker_time_stamp
         run: echo "BUILD_TIMESTAMP=$(date -u +"%Y-%m-%dT%H:%M:%S.%3NZ")" >> $GITHUB_ENV
+      -
+        name: Get versions from .env file using Dotenv Action
+        id: dotenv
+        uses: falti/dotenv-action@v1.1.4
+        with:
+          log-variables: true
+          keys-case: bypass
       -
         name: Build
         uses: docker/build-push-action@v6
@@ -57,6 +64,8 @@ jobs:
             "NODE_VERSION=${{ matrix.version }}"
             "GITHUB_SHA=${{ github.sha }}"
             "BUILD_TIMESTAMP=${{ env.BUILD_TIMESTAMP }}"
+            "TERAFOUNDATION_KAFKA_CONNECTOR_VERSION=${{ steps.dotenv.outputs.TERAFOUNDATION_KAFKA_CONNECTOR_VERSION }}"
+            "IMAGE_VERSION=${{ steps.dotenv.outputs.IMAGE_VERSION }}"
           provenance: false
           sbom: false
           pull: true
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index db42d19..12b52be 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -48,6 +48,13 @@ jobs:
         name: Get timestamp for docker build
         id: docker_time_stamp
         run: echo "BUILD_TIMESTAMP=$(date -u +"%Y-%m-%dT%H:%M:%S.%3NZ")" >> $GITHUB_ENV
+      -
+        name: Get versions from .env file using Dotenv Action
+        id: dotenv
+        uses: falti/dotenv-action@v1.1.4
+        with:
+          log-variables: true
+          keys-case: bypass
       -
         name: Build
         uses: docker/build-push-action@v6
@@ -58,6 +65,8 @@ jobs:
             "NODE_VERSION=${{ matrix.version }}"
             "GITHUB_SHA=${{ github.sha }}"
             "BUILD_TIMESTAMP=${{ env.BUILD_TIMESTAMP }}"
+            "TERAFOUNDATION_KAFKA_CONNECTOR_VERSION=${{ steps.dotenv.outputs.TERAFOUNDATION_KAFKA_CONNECTOR_VERSION }}"
+            "IMAGE_VERSION=${{ steps.dotenv.outputs.IMAGE_VERSION }}"
           provenance: false
           sbom: false
           pull: true