Government to prepare final draft on LNG terminal installation
6 October 2015, Nirapad News: The government is set to prepare the final draft of strategy for installing the Liquid Natural Gas (LNG) terminal at Moheshkhali in consultation with Excelerate Energy (EE).
“Petrobangla has accumulated recommendations through appointed lawyer and consultant for signing the final agreement with Excelerate Energy in setting up the terminal,” Secretary of Energy and Mineral Resources Division of Power, Energy and Mineral Resources Ministry Abubakar Siddique told BSS today.
He said the Astra Excelerate Consortium (AEC) completed the Met-ocean study after signing a contract with Petrobangla on February 25, 2015 for installation of the Floating Storage and Re-gasification Unit (FSRU) based LNG terminal.
An expert committee has submitted their recommendations in favour of setting up the FSRU based LNG terminal at Moheshkhali Island in the Bay of Bengal after examination of the Met-ocean study, Siddique said.
The secretary said that the final draft for contract would be sent to the legislative and parliamentary affairs division for vetting and then it would be sent to the Cabinet Committee on Government Purchase for approval.
According to a ministry official, the government has decided to install the LNG terminal having capacity of 1,38,000 cubic metre for supplying of 500 million metre standard cubic feet per day (mmscfd) aimed at mitigating growing energy demand in the country.
He said the Singapore-based Astra Oil and Excelerate Energy Consortium (AEC) would construct the FSRU at Moheshkhali in the Bay of Bengal. As per the deal, the company will implement the project on Build-Own-Operate-Transfer (BOOT) basis to meet the growing demand of the gas and it would be transferred to the government after the 15 years.
There is no direct investment from the government for the FSRU, but the government would bring LNG from exporter countries like Qatar through procurement. Thereafter, the government would sell it to the consumers after re-gasification of the LNG.
The project details said the installation of 91 kilomitre gas transmission pipelines with 30 diametire from Moheshkhali to Chittagong has been progressing with satisfactory.
The Petrobangla would also provide USD 90.16 million annually to AEC, while the company will deposit USD 2 million as Term Sheet Security during signing of the Term Sheet Agreement, it said.
Earlier, the state owned Petrobangla signed the Term Sheet Agreement with the AEC on June 26, 2014 aimed at supplying gas 500 mmscfd and completing the Met-ocean study with its own finance.
On January 14, 2015 the cabinet Committee on Economic Affairs in principle approved the Term Sheet Agreement.