Petrobangla signs agreement with Excelerate Energy Bangladesh for LNG terminal

Petrobangla has entered into an agreement to set up Bangladesh’s first Liquefied Natural Gas (LNG) terminal at Cox’s Bazar’s Moheshkhali.

Staff Correspondentbdnews24.com
Published : 31 March 2016, 01:08 PM
Updated : 31 March 2016, 01:08 PM

The state-owned oil company signed a terminal-use agreement with Excelerate Energy Bangladesh Limited at its Dhaka office on Thursday.  

The government expects imported gas brought by ships to be fed into the national grid through the terminal from 2018.

The Floating Storage and Re-gasification Unit (FSRU) will have the capacity to hold 138,000 cubic metres and distribute up to 500 million cubic feet per day. 

Singapore-based company Astra Oil and Excelerate Energy Consortium will function as Excelerate Energy Bangladesh for the project.

It will get 49 cents per 1,000 cubic feet of gas for the terminal’s construction but the figure will climb to 59 cents when other expenses are added.

Petrobangla Secretary Syed Ashfakuzzaman and Karlman Tham, manager of business development at Excelerate Energy, signed the agreement.

Toufique-e-Elahi Chowdhury, the prime minister’s energy advisor, said at the programme that Excelerate would invest $500 million for the terminal construction. 

“The study for the terminal construction will last for three to four months. The work will begin after that,” said Energy Minister Nasrul Hamid, who was present at the signing.