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Petrobangla inks deal for using LNG re-gasification terminal

  • Published at 09:29 am October 18th, 2017
  • Last updated at 09:30 am October 18th, 2017
Petrobangla inks deal for using LNG re-gasification terminal
State-owned Bangladesh Oil, Gas and Mineral Corporation, also known as Petrobangla, has signed a term sheet agreement for using LNG re-gasification terminal with a consortium of local Hong Kong Shanghai Manjala Power Limited (HSMPL) and Malaysia's Global LNG and Petronas LNG Limited. HSMPL Chief Executive Officer Omar Zafar and Petrobangla Secretary Sayed Asfaquzzaman signed the deal on behalf of their respective sides, Petrobangla Deputy General Manager Md Jabed Ibne Shahed told the Dhaka Tribune on Tuesday. The floating storage and fixed jetty based re-gasification unit – popularly known as liquefied natural gas (LNG) processing terminal – will be set up by the consortium at Kutubdia island in Cox's Bazar. This will be the third firm – after US-based Excelerate Energy and local Summit Group – to set up an LNG floating terminal. All three floating terminals would have daily generation capacities of 500 million cubic feet. The government plans to start supplying LNG to industrial and commercial units on a priority basis after the import, which is likely to begin in April, 2018. The signing ceremony was held on Monday at the Petro Center in Dhaka. Kazi Zafar Ullah, a member of ruling Awami League's presidium, Nilufer Zafar Ullah, MP, Energy and Mineral Resources Division Secretary Nazimuddin Chowdhury, Petrobangla Chairman Abul Mansur Md Faizullah were present at the function. HSMP was founded in the 1970s by Kazi Zafar Ullah. The country’s first LNG terminal, a 3.75-million-ton-per year FSRU (floating storage, regasification unit) being constructed by Excelerate Energy Ltd, is expected to be commissioned in April 2018. A second one with similar capacity, being built by local Summit Group, is expected to be operational by the end of 2018. LNG, which will be imported by Petrobangla from Qatar, Oman and Switzerland, will be added to the national gas grid.