Petrobangla to form joint ventures for LNG import
The government is going to import liquefied natural gas (LNG) on a small scale using existing seaside platforms of various state-owned enterprises as part of an aggressive drive to meet energy shortages.
At least 200 million cubic feet per day (mmcfd) will be imported through joint ventures of Petrobangla and the local private sector or foreign companies.
Already 13 foreign companies have expressed interest. Petrobangla on Tuesday signed an initial agreement with one of them, Gunvor Singapore.
Yesterday the cabinet committee on economic affairs gave approval for Petrobangla to use jetties of Chittagong Urea Fertiliser Limited (CULF) and Karnaphuli Fertiliser Company Limited (KAFCO) and a platform in the Bay of Bengal of Sangu, the country's first offshore gas field.
The interested companies are PTC Corporation, Panama City & SKE & S Korea, Trafigura Pte Ltd (Singapore), Pavilion Energy (Singapore), Gunvor (Singapore) and Exmar Marine NV (Belgium), ExxonMobil LNG Market Development Inc (USA), Petronas LNG Ltd (Malaysia), Marubeni Corporation, JERA & K-Line (Japan), Wison Offshore & Marine (China), Hemla Energy AS (Norway) and MIE Holding Corporation (USA).
Petrobangla will buy LNG once the companies import it after constructing necessary infrastructure.
The official said Petrobangla has been examining the proposals from these companies and as a part of this signed an initial agreement with the Singapore-based company.
Earlier, the government signed agreements with several floating LNG terminals. It has also appointed a consultant for setting up a land-based LNG terminal.
The government has taken an initiative to import LNG from various countries.
At the signing ceremony on Tuesday, Nasrul Hamid, state minister for power and energy, said the government signed memorandums of understanding with RasGas of Qatar, Oman Trading International of Oman, Pertamina of Indonesia, Astra Oil of Switzerland and Gunvor Singapore to buy LNG.
Forty one companies have expressed willingness to supply LNG through spot market to Bangladesh after the government sought “expressions of interest” on August 17 this year.
A panel will be formed to sign the sales and procurement agreement, said the minister. “The crisis of gas will start to go away from April next year,” he said.
The minister said 500 mmcfd of LNG would be imported every day from April next year, which will be used in Chittagong region.
Another 500 mmcfd of LNG will be added to the national pipeline in October 2018. “This LNG will be used in the central parts of the country.”
He said although the Chittagong region would be served initially, the impact would be felt in other parts of the country.
The government has also taken up plans to establish LNG-based power plants.
Hamid said the LNG would be blended with the local gas before being supplied to industries. “Although the gas price will go up to some extent, it would be helpful for them ultimately.”
The LNG imports will bump up the supply for consumers by 37 percent.
The country has been dogged by serious gas shortages for a long time now, crippling industries. It currently has a supply of about 2,700 mmcfd from various gas fields against the demand for 3,300 mmcfd.
POWER PLANT
United Enterprises & Co Ltd is going to set up a 200 MW furnace oil-based power plant at Mymensingh and run it for 15 years. The government will buy electricity from the company at a rate of Tk 8.4166 per kW/h.
Yesterday the cabinet committee on purchase approved the proposal for buying the electricity. In the 15 years the government will be paying Tk 17,640 crore.