Bangladesh Cancels FSU Project
Bangladesh has cancelled a deal with Hongkong Shanghai Manjala Power, Malaysia's Petronas and Global LNG, over building an LNG import terminal, RPGCL managing director Mohammad Quamruzzaman told NGW November 12. The government appears to be having second thoughts about the suitability of floating terminals, as problems have beset the first floating terminal.
The consortium signed an agreement ith Petrobanglo on October 16, 2017 and it was to build a 3.75mn metric tons (mt)/yr floating storage unit (FSU) along with a fixed jetty based LNG re-gasification unit on Kutubdia island at in Cox's Bazar near the first FSRU at Moheshkhali.
Petrobangla's wholly owned subsidiary Rupantarita Prakritik Gas Company (RPGCL) looks after the country's LNG issues.
Bangladesh last month terminated talks with Indian utility Reliance Power to build a smilar 3.75mn mt/yr FSRU for LNG imports, also at Kutubdia Island.
It also announced shelving its plans for three small-scale FSRUs in September following objections from the country's main port authority, and as LNG imports at its first full-sized FSRU ramped up then.
Commodity traders Trafigura, Gunvor and Vitol, as well as Belgian shipping company Exmar were in final talks with Petrobangla and its subsidiary RPGCL to build the mini FSRUs and sell the gas to Petrobangla. They were to supply around 200mn ft³/day of regasified LNG to Petrobangla for over 10 years.
Petrobangla inked these deals and with the concerned sponsors under Speedy Supply of Power and Energy (Special Provision) (Amendment) Act, 2010, by-passing competitive tendering process. This legislation grants the government sweeping authority to bypass existing legislation in the energy and power sectors, so that it can implement projects quickly.
But these cancellations came as a disappointment for the commodity traders and shipping companies. Petrobangla has already cancelled two regular 140,000 m³ cargoes and asked its main supplier Qatar's RasGas to suspend deliveries while a fault with an underwater valve is remedied.
An 'actuator valve' between the Excelerate Energy-owned FSRU Excellence and subsea pipeline started leaking at 7pm local time November 3, forcing regasification operations to be halted. Petrobangla expects to reinitiate re-gasification to resume November 15.