Petrobangla requests $1.4 bln state subsidy to cover LNG import costs

Bangladesh’s Petrobnangla has turned to the government for a US$1.4 billion subsidy to fund the LNG imports in 2018.

The state-owned company would not be able to cover the LNG import costs through gas sales to the domestic market, Platts reports, citing Petrobangla’s LNG unit head Mohammed Quamrumman.

Quamrumman added that the subsidy would cover around 77.77 percent of the import costs for the year 2018 when the country’s first FSRU-based LNG import terminal is set to begin operations. From 2018 onwards, the annual cost of Bangladesh’s LNG imports is expected to be around $1.8 billion.

The floating LNG project at Moheshkali Island in the Bay of Bengal, is a joint effort between Excelerate and the International Finance Corporation (IFC, and a member of the World Bank Group) under a joint development agreement.

Under its contract with Petrobangla, Excelerate will fully develop, design, permit, construct, install, finance, and operate the terminal.

The FSRU unit to be provided by Excelerate will have a storage capacity of 138,000 cubic meters and a base regasification capacity of 500 million standard cubic feet per day.

According to Quamrumman the FSRU’s capacity will be fully utilized as the country plans on importing 500 mcf per day from 2018.

LNG World News Staff