Bangladesh Stepping Closer Towards Construction of LNG Terminal

The government of Bangladesh has asked Petrobangla to find out a competent firm by March for setting up of LNG terminal, reports local newspaper Daily Sun.

Petrobangla will submit the financial and technical proposals in March, a senior official told the newspaper.

“We will award the Floating Storage and Re-Gasification Unit (FSRU) under Special Power and Energy Enhancement Act-2010 and for this we asked the Petrobangla to complete the negotiation alone and complete technical and financial proposals by March, 2014,” country’s Energy and Mineral Resources Division (EMRD) Secretary Md Mozammel Huque Khan told Daily Sun after a meeting on installation of the LNG terminal.

The government is targeting to set up the LNG terminal by the next year.

“We have targeted to award the FSRU by June this year and hopeful of setting up the terminal within 18 months after award,” Petrobangla Chairman Prof Hossain Monsur said.

State-owned Petrobangla short-listed a consortium of US-based Astra Oil and Excelerate Energy, South Korea’s Samsung C&T Corporation and India’s Hiranandani Electricity Private Limited for building the floating LNG terminal following a bidding process in December 12, 2011.

As per the newspaper report, the government has already started negotiation with Excelerate Energy-Astra regarding the project.

Excelerate Energy-Astra consortium seeks to realise the installation cost in 15 years by charging $0.39 for processing each million cubic feet of gas and agreed in principal to transfer it without further charge, Petrobangla official said.

Petrobangla would also seek price offers from other two firms, Daily Sun adds.

“We will award the deal to the competent firm," the Petrobangla official said.

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