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Bangladesh all set to build its first LNG terminal in partnership with US firm
Bangladesh government has signed agreements with a US-based company to construct the country’s first Liquefied Natural Gas (LNG) terminal.
Published : 18 July 2016, 01:32 PM
Updated : 18 July 2016, 02:55 PM
As many as two agreements were signed between Excelerate Energy, the Ministry of Power, Energy and Mineral Resources, and state-owned oil company Petrobangla on Monday.
The agreements will clear the decks for the construction of a floating LNG terminal in Cox’s Bazar and its use.
Once completed, officials expect the terminal to go a long way to meet the deficit gas supply of the country.
Speaking at the ceremony, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said, “There is a demand for another 3,500 million cubic feet gas for the development of industries in the country. Research is on to this end. Gas will also be imported from other countries.”
He said the government is mulling constructing four other terminals on land and added that the construction of several other similar floating terminals is also in the government pipeline.
The Excelerate investment of $500 million is going to be the biggest for Bangladesh from any US company after Chevron.
The agreement allows Bangladesh to use the terminal for 15 years after its completion.
In order to import LNG, the government has to fish out $1.5 billion, an additional $90 million will have to be incurred as rent for the terminal, while another $22.54 billion will have to be borne as VAT and other taxes, it was revealed at the event.
The Awami League government initiated the process of creating an LNG terminal in 2009 immediately after coming to power. But various impediments had delayed the project.
During its second successive term in 2014, the LNG terminal was listed among the high priority projects.
The deals were signed by the energy ministry’s Deputy Secretary Jonendra Nath Sarkar, Petrobangla Secretary Syed Ashfaquzzaman and Excelerate Energy Chief Development Officer Daniel Bustus.
Tawfiq-e-Elahi Chowdhury, the Adviser to Prime Minister on Energy, and US Ambassador Marcia Bernicat, among others, were also present.
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