Bangladesh’s Purchase Cabinet recently approved the proposal by the ministry of power, energy and minimal resources to deploy an LNG terminal as well as the government’s deal with Excelerate Energy.
According to local media reports, the government has agreed to pay US$1.55 million per year for LNG purchases at the Moheshkhali terminal, being built to cover the rising demand for the fuel.
Earlier this year, the state-owned Petrobangla signed a deal with Excelerate Energy for the delivery of Bangladesh’s first FSRU near Moheshkhali Island in the Bay of Bengal on a build-own-operate-transfer basis, Petrobangla said in a statement.
The FSRU will have a storage capacity of 138,000 cubic meters and a base regasification capacity of 500 million standard cubic feet per day.
Excelerate Energy is set to operate the facility for 15 years once the construction is completed. It is expected that the construction would take 23 months once the final deal is concluded, with imports to start in 2018.
According to local reports, Mostafizur Rahman, the additional secretary said Petrobangla booked 500 cubic feet gas per day for which it will be paying $90 million per year, excluding taxes.
LNG World News Staff