The Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has inked final deals with Summit LNG Terminal Company to develop Bangladesh’s second floating Liquefied Natural Gas terminal.
A terminal use agreement and an implementation agreement for the building of the floating LNG import terminal at Moheshkhali Island in the Bay of Bengal were signed on 20th April 2017.
Summit group will install a Floating Storage and Re-gasification Unit (FSRU) at Moheshkhali Island, reports BSS.
This would be the second floating LNG terminal in Bangladesh.
The first one is being developed by US-based Excelerate Energy Bangladesh Ltd. at the same location.
The Summit would set up the floating storage and FSRU terminal at its own cost having 500 million meter standard cubic feet per day (mmscfd) capacity, basis with 9 km subsea pipeline off Moheshkhali which would go on the operation after 18 months.
State-owned Petrobangla inked the deal under a special policy that allowed it to bypass the tendering process. It has signed the Terminal Use Agreement (TUA) and Implementation Agreement (IA).
This policy gives the government sweeping powers to bypass existing legislation in the energy and power sectors so that it can implement projects quickly.
Summit will transfer the facility to Petrobangla after 15 years. Petrobangla will pay 45 cents/Mcf to Summit for the service.
The cost of the second project is estimated at $400 million-500 million, which Summit will implement jointly with the US-based General Electric as a 20% equity investment partner.
Bangladesh expects to start importing LNG in 2018 through the first floating LNG import terminal being developed by Excelerate.