Petrobangla and Singapore-based Astra Oil and Excelerate Energy consortium (AE) yesterday signed an initial agreement on setting up the country’s first floating storage and re-gasification unit (FSRU), popularly known as Liquefied Natural Gas (LNG) terminal, at Cox’s Bazar’s Moheshkhali island in the Bay of Bengal.
Secretary Imam Hossain of the state-owned oil and gas company and Director (project origination) of AE Sampo Suvisaari signed the agreement under the Speedy Supply of Power and Energy (Special Provision) Act at Petro Centre in the city following a three-day negotiation.
Prime minister’s Energy Adviser Tawfiq-e-Elahi Chowdhury, State Minister for Power and Energy Nasrul Hamid, Energy and Mineral Resources Division Secretary Md Mozammel Haque Khan and Petrobangla Chairman Hossain Monsur were present during the signing ceremony.
According to the agreement, Petrobangla will pay 0.474 cents per mmbtu for FSRU under a build-own-operate-transfer basis for 15 years. The LNG storage capacity of FSRU has 1,38,000 cubic metre.
Besides this, Petrobangla would pay the port service charges and tax on behalf of AE during the period.
Petrobangla would receive LNG within the range between 500mmcfd and 600mmcfd.
“We will sign the final deal on setting up the terminal after getting approval from the cabinet committee on economic affairs,” Petrobangla Chairman Hossain Monsur told the Dhaka Tribune.
“After finally signing the deal, AE will conduct metocean study over climate to determine which measures have to be taken in different conditions in maintaining the terminal, geo technical study and detail engineering design,” he said.
“They would set up the terminal within 16 months from the date of signing the final agreement,” he said, adding: “AE would have to invest $500 million as infrastructure and other costs to set up the terminal.”
The Petrobangla chairman hoped that Bangladesh would be able to import LNG within June, 2016.
After setting up the LNG terminal, the government can import LNG from Qatar or other countries by paying $16-18 per mmbtu unit.
The Awami league-led government during its last tenure after assuming office in 2009, decided to import LNG to feed the national grid by 500 mmcfd or million cubic feet per day from the year, 2013.
Separately, state-owned Gas Transmission Company Limited (GTCL) moved to lay a 91km Moheshkhali-Anowara gas transmission pipeline to carry re-gasified LNG from the terminal to shore.
