Energy Bangla

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Dhaka Saturday,  May 26, 2018

Approval Given To Buy LNG And Setting Up A Terminal

EB Report

The government is likely to import Liquefied Natural Gas (LNG) from
Qatar’s state-run RasGas to meet the country’s current demand for gas.
The cabinet committee on economic affairs on Wednesday has approved
the proposal in principle of importing 3.75 million tons of liquefied
natural gas (LNG) from RasGas at an estimated cost of US$2.28 billion.

The cabinet committee also approved a proposal of installing a
floating LNG terminal at Maheshkhali, Cox’sbazar. However, the
government already signed another contract with US-based company
Excelerate Energy to set up an LNG terminal at the same Island. The
installation of this terminal is expected to be completed within the
first quarter of the next year.

Petrobangla the state-owned company has estimated that the government
would have to spend around $1.57bn annually to import LNG only through
the terminal to be built by Excelerate at an estimated cost for LNG at
US$8 per Mcf.

Earlier, Bangladesh signed a MoU with Qatar on January 16th of 2011 to
import around 4mn tons of LNG annually. The MoU was extended twice as
the government couldn’t afford setting up any LNG terminal to port any
imported LNG.

The government has formed a committee that will be responsible for
adjusting the tariff and price of the LNG and gas at the local market.
The committee estimated that the imported LNG would cost $8 for MMBtu
and every single shipment would cost $24 million.

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