The Daily Star: US-S'pore Consortium to Build LNG Terminal

A US-Singapore consortium is going to build the first-ever floating LNG terminal in Bangladesh and import gas for $17.1 per million cubic feet (mmcf), 10 times higher than the national gas sales price.

The cabinet committee on economic affairs yesterday approved an unsolicited deal with the US-Singapore consortium of Astra and Excelerate (AEC) under the Power and Energy Fast Supply Enhancement (Special Provision) Act, 2010.

The import of Liquefied Natural Gas (LNG), though at a very expensive rate, is likely to ensure the country's energy security in the long run.

Finance Minister AMA Muhith told reporters after yesterday's meeting that the price of the imported gas would have been much higher, but not that much as it would be mixed with local gas.

According to an energy ministry proposal, if LNG was mixed with local gas, the average cost of gas will rise to $4.39 per mmcfd from $1.7, implying that the government will have to hike gas price in future. MORE