The construction of the country’s first liquefied natural gas (LNG) terminal will be completed by the end of December next year, said Nazimuddin Chowdhury, secretary of the energy division, yesterday.

Nearly 70 percent of the work has been completed so far, he said at the fifth business consultative meeting of the commerce ministry.

Petrobangla and US-based Excelerate Energy are setting up the terminal on the island of Moheshkhali in the Bay of Bengal.

The unit will provide natural gas to Chittagong, which has been facing an acute gas crisis for a long time.

A 90-kilometre pipe of 30-inch diameter will carry the gas from the floating terminal to Anowara to feed the national grid. The LNG will be imported from Qatar.

In 2010, the government took the step to import LNG in the wake of the declining reserves of natural gas.

“We are not expecting much gas from the local wells,” Chowdhury said, adding that a total of 108 wells are currently being explored for gas. The government plans to set up three more LNG terminals.

Chowdhury also hinted at a hike in gas prices for households and automobiles. But the rate for industrial use -- for example, the running of captive power plants -- might not be increased.

At the meeting, Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, urged the government to consult with businesses before the enforcement of the new value-added tax law from July this year.

Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association, called upon the government to disburse bank loans at 3 percent interest rate from the remediation fund provided by different donor agencies and development partners.

Finance Minister AMA Muhith chaired the meeting, while Commerce Minister Tofail Ahmed also spoke.