12 companies show interest to build LNG terminal
A total of 12 companies have shown interest in building the country’s first onshore liquefied natural gas (LNG) import terminal, according to Reuters.
Bangladesh is turning to land-based LNG terminals as its first imports of the super-chilled fuel via a floating platform were delayed due to inclement weather and technical issues.
Rupantarita Prakritik Gas Company Limited (RPGCL), a part of state-owned oil and gas company Petrobangla, earlier this year had requested expressions of interest (EOI) from potential terminal developers for a land-based LNG regasification terminal at Matarbari in Cox’s Bazar.
Twelve companies have submitted documents showing interest to build the terminal, two officials from RPGCL told Reuters.
The companies include Japan’s Mitsui, South Korean utility KOGAS, and a consortium led by Summit Corp, a unit of Bangladesh’s Summit Group, the officials said.
The consortium of Summit, Japan’s Mitsubishi and JERA Co, the world’s largest LNG buyer, was created for the proposed development of the LNG terminal in Matarbari. Summit is the lead investor in the consortium with Mitsubishi and JERA as minority stakeholders, an official of Summit Group told The Daily Star.
Summit and Mitsubishi have been envisioning this project for over a year and it is part of Summit, Mitsubishi and GE’s $3 billion foreign direct investment (FDI) to Bangladesh, the official said, on condition of anonymity.
Citing an official, Reuters said a committee will evaluate the proposals and create a shortlist based on the capabilities and technical assessments of the 12 companies. It could take more than a year to complete and award the contract for the terminal.
The expressions of interest were initially due on March 20, but the closing date was delayed to this week after the companies requested more time.
The expression of interest is for the design, engineering, procurement, construction and commissioning of an onshore terminal that can handle 7.5 million tonnes of LNG a year, including receiving, unloading, storing and regasification facilities.
The project will run on a build-own-operate basis for 20 years, with ownership to then be transferred at no cost to the Bangladeshi government or a company nominated by the government.