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India’s Petronet proposes to set up $1 billion onshore LNG terminal in Bangladesh
India’s Petronet LNG Limited has submitted a proposal to set up an onshore liquefied natural gas import facility in Bangladesh at an investment of around $1 billion.
Published : 27 July 2018, 04:18 PM
Updated : 27 July 2018, 04:18 PM
The biggest LNG importer of India said in the proposal it can build the LNG receipt facility on Kutubdia Island in three and a half years from the date of receiving all approvals, the Press Trust of India reported on Friday citing Petronet Managing Director and CEO Prabhat Singh.
Petronet signed a Memorandum of Understanding with Bangladesh Oil, Gas and Mineral Corporation or Petrobangla during Prime Minister Sheikh Hasina’s visit to New Delhi in December last year to set up the terminal.
Petronet has now made a formal proposal with techno-economic details including the cost to the Bangladesh government for approval, Singh said.
Once set up, the terminal will receive and regasify 7.5 million tonnes of LNG a year at a cost of $950 million.
The project would also include the work to lay a 26-kilometre pipeline to connect the terminal to the consumption markets.
It would also be possible to transport imported LNG by using small barges and trucks from the terminal, Singh told PTI.
Once Bangladesh government accepts the proposal, a formal pact will be signed between Petronet and Petrobangla, he said.
The LNG terminal will supply gas to a proposed 1,000MW combined cycle power plant as well as the existing power plants in Raozan and Shikalbaha through a planned pipeline.
Bangladesh has already set up its first LNG terminal at Maheshkhali in Cox’s Bazar and a floating storage and regasification unit or FSRU carried the first shipment of 133,000 cubic metres of LNG from Qatar in April.
Bangladesh is suffering a gas crisis as the government has been forced to limit the supply despite growing demand at industries and households due to lack of extraction from the gas fields.
The work to set up several floating and land-based LNG terminals in Maheshkhali, Khulna and Patuakhali’s Payra is under way.
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