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2017-04-21 20:30:00

BANGLADESH'S LNG TERMINAL

BANGLADESH'S LNG TERMINAL

PLATTS - State-owned Petrobangla has inked final deals with Summit LNG Terminal Co., a subsidiary of the Summit Group, to development Bangladesh's second floating LNG terminal, Tariqul Islam Khan, Petrobangla's manager of communication, said Friday.

A terminal use agreement and an implementation agreement for the building of the floating LNG import terminal at Moheshkhali island in the Bay of Bengal were signed Thursday, he added.

This would be the second floating LNG terminal in Bangladesh. The first one is being developed by US-based Excelerate Energy Bangladesh Ltd. at the same location.

Petrobangla inked the deal under a special policy that allowed it to bypass the tendering process.

This policy gives the government sweeping powers to bypass existing legislation in the energy and power sectors so that it can implement projects quickly, a senior energy and power ministry official said Friday.

Summit has agreed to develop the facility on a build, own, operate, transfer, or BOOT, basis with 9 km subsea pipeline off Moheshkhali within 18 months of signing the final contract to facilitate supply of around 500,000 Mcf/d of gas from imported LNG.

Summit will transfer the facility to Petrobangla after 15 years.

Petrobangla will pay 45 cents/Mcf to Summit for the service.

The cost of the second project is estimated at $400 million-500 million, which Summit will implement jointly with US based General Electric as an 20% equity investment partner.

Bangladesh expects to start importing LNG in 2018 through the first floating LNG import terminal being developed by Excelerate.

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Earlier:

LNG: 

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INDIA'S LNG IMPORTS UP 33%

 

 

Tags: BANGLADESH, LNG

Chronicle:

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