Despite the government having reached a primary agreement with Switzerland-based AOT Energy AG on June 13 last year, there has been no significant progress on the final draft of the agreement to import liquefied natural gas (LNG).
According to sources from the power sector, Bangladesh took the move to import around 1.25 million tons of lean LNG from the Swiss company, formerly known as Astra Transcore Energy, annually for the next 15 years in order to meet the growing demand for gas.
However, when contacted on Thursday, Energy and Mineral Resources Division (EMRD) Joint Secretary Zanendra Nath Sarker told the Dhaka Tribune that the final draft of the import agreement was yet to be prepared.
“As far as I know, the final agreement was yet to be drafted and, as such, it has not gone to the cabinet committee on public purchase,” he said.
Last March, a high-level six-member Bangladeshi delegation visited the AOT’s facilities in Switzerland, before making their recommendations on the company’s experience and financial capabilities.
Towhid Khan, director (finance) of Petrobangla, led the delegation which also included Prime Minister’s Office Director General (admin) Md Khalilur Rahman, Law Ministry Joint Secretary Sayed Ahmed, Rupantarita Prakirtik Gas Company Limited Deputy General Manager Kazi M Anwarul Azim, Zanendra Nath Sarker, and a representative from the National Board of Revenue (NBR).
In its report, the delegation praised a number of aspects of the Swiss company, particularly their experience in shipping, LNG management, scheduling and financing.
Meanwhile, Petrobangla Chairman Abul Mansur Md Faizullah wrote to the EMRD secretary in late April this year, citing the findings of the delegation.
Once given the final go-ahead by the cabinet committee on public purchase, AOT Energy will become the third ever company to supply the super-chilled fuel to Bangladesh.
In September last year, the state minister for power, energy and mineral resources forwarded a summary report submitted by the delegation to the prime minister for vetting under the Speedy Supply of Power and Energy (Special Provision) Act 2010. The premier approved the report a month later.
According to the Bangladesh Oil, Gas, and Mineral Corporation, better known as Petrobangla, the country’s demand for gas is 3.70 billion cubic feet per day (bcfd), whereas the supply stands at 2.70 bcfd.
In order to reduce the gap between demand and supply, the EMRD is importing LNG from Qatar, with the first shipment arriving at Moheshkhali, Cox’s Bazar on April 24. The LNG is expected to be added to the national grid on July 4.
In addition, the government sealed a deal with Oman to import one million tons of LNG annually for 10 years on May 6.
