Agreement Signed for Bangladesh's 2nd FSRU

Bangladesh state owned energy company Petrobangla January 4 signed an initial contract with local private sector firm Summit Group to build a floating LNG terminal at Moheshkhali Island, offshore from Cox’s Bazaar, near the industrial Chittagong region, various media reports have said.  

Summit LNG Terminal Company, a subsidiary of Summit Group, would develop the project in 18 months after signing the final contract later this year. The terminal is expected to feed close to 500mn ft³/d of natural gas into the system. According to reports, Petrobangla will pay $0.45 to Summit for every 1000 ft³ of natural gas that has been regasified.

This would be Bangladesh’s second floating LNG import terminal. Petrobangla last year signed a contract with Excelerate Energy under which the latter would build and operate a floating terminal, also in Moheshkhali.

Petrobangla also signed an agreement with Indian Petronet LNG last month for a land based import terminal. The project includes setting up LNG re-gasification terminal at Kutubdia island along with gas pipeline to carry the regasified LNG. The capacity of the terminal is likely to be 7.5mn mt/yr at an expected project cost of $950mn. The project is expected to be complete in four years with provision for future expansion and can also be used to supply LNG through small barges and LNG trucks to users which are not connected by gas grid.

Shardul Sharma