Bangladesh to Sign LNG Terminal Deal Later This Month

Government of Bangladesh will sign on May 23 an initial agreement with a consortium of US-based Astra Oil and Excelerate Energy to set up country’s first LNG terminal, according to Bangladeshi newspaper Daily Sun.  

Petrobangla has agreed to provide port services and supply fuel to run the terminal. Company’s chairman Prof Hossain Monsur said the Petrobangla is expected to import LNG in 2016.

International Finance Corporation is providing funds for the $117 million project which will be coming up at Moheshkhali, says Daily Sun.

Petrobangla officials are hopeful the final deal would be inked before December 2014. The terminal would be set up within 18 months under the unsolicited deal, Daily Sun quotes the officials as saying.

Bangladesh has already signed a memorandum of understanding (MoU) to import 500mmcfd of LNG from Qatar.

According to the newspaper, the government will need $14-$16 per mmcfd while another 0.39 cents would be required as re-gasification cost for a unit of gas.

A 91-kilometer gas transmission pipeline between Moheshkhali and Anwara will also be built. The authorities have already selected an Indian firm to set up the transmission pipeline, says Daily Sun.