Economic Reporter :
The Ministry of Power, Energy and Mineral Resources is going to take yet another distinctive step to procure quality energy for the country. It is at the final stage to get Liquefied Natural Gas (LNG) from a world-renowned Swiss company AOT Energy, formerly known as Astra Transcore Energy, in a very competitive price with the most favorable payment terms, said an official concerned, adding that getting one-month extra time for international payment will be highly beneficial to the country.
Sources at the ministry and the government officials concerned have claimed that the upcoming decision would help not only to getting best LNG supply for the industrial development but also to enhancing the bilateral trade relationship between Bangladesh and Switzerland. Swiss Government is very encouraged by new business engagements with Swiss company, including but not limited to, AOT Energy.
A six-member Bangladesh delegation already visited the AOT sites in Switzerland prior to their positive recommendation about AOT’s experiences and financial capabilities. Director of Finance of Petrobangla Towhid Khan led the team consists of Md. Khalilur Rahman, DG, Admin of Prime Minister’s Office, Sayed Ahmed, Joint Secretary, Ministry of Law, Kazi M. Anwarul Azim, DGM, RPGCL, Zanendra Nath Sarkar, Joint Secretary, EMRD and a representative from National Board of Revenue (NBR).
This inter-organizational team visited AOT headquarters in March 2018 and reported in a very positively based on verifiable facts including the long trading and shipping experiences, financial capabilities of the Swiss company, a source concerned has confirmed.
Abul Mansur Md Faizullah, Chairman, Petrobangla sent a letter to the secretary of Energy and Mineral Resources division of the Ministry of Power, Energy and Mineral Resources in late April this year regarding the issue. The team has found AOT as experienced in LNG management, scheduling and trading and ship-to-ship LNG supply, Mr. Mansur mentioned in his letter, a reliable source said.
Once finalized, AOT Energy will be the third company to supply world standard LNG to both the Floating LNG Terminals (FSRU) developed by Excelerate Energy Bangladesh Limited (EEBL) and Summit Corporation Limited.
The government was committed to start supplying imported LNG to the national grid within 2018 aiming to meet long awaited energy demand of the country. Accordingly, the first shipment arrived late April this year carrying 133,000 cubic meters of LNG from Qatar.
After receiving the first contingent at a program in Dhaka the State Minister for Power and Energy Nasrul Hamid said the government had a robust plan for LNG procurement. “We want to go big in LNG because the financing is available. LNG is technologically better, as the cleaner energy needs less land,” he said at a seminar held in early May.
Initially the ministry signed a non-binding MoU with AOT Trading AG in mid-June 2017 and continued their discussions and negotiations. Later in September, state minister Nasrul Hamid sent the approved summery of the report to the Minister of Power, Energy and Mineral Resources (Prime Minister herself) for selecting it under Quick Enhancement of Electricity and Energy Supply Act-2010. Subsequently Prime minister approved the summery report in October 2017. Upon initializing SPA (Sales purchase agreement) in January 30 2018 by both AOT and Petrobangla, the ministry was about to finalize SPA as the third supplying entity, in addition to Rasgas of Qatar and Oman Trading of Sultanate of Oman, the sources said.
According to reliable sources, during the visit of the Bangladesh delegation to Switzerland, Swiss Minister Matthias Michelsen, mentioned that AOT is considered as one of the leading energy companies in Switzerland and is known as a reputable and reliable company within Zug, Switzerland and abroad.
Switzerland focuses on long-term partnerships, and also political stabilization within the country as explained by Minister Michelsen. Matthias Michel also referenced the visit of the Swiss President to Bangladesh and the support from the SECO (State Secretariat for Economic Affairs). The President of Switzerland also contributed to the Rohingya crisis during the official visit and AOT was attending as part of the official program.
It is noted that AOT has been supporting the development of LNG in Bangladesh since 2010. AOT Energy was the leading member of the Astra Oil-Excelerate consortium that successfully won the government tender for supplying the first LNG FSRU terminal to Bangladesh back in 2013. This terminal has recently commenced operations in Moheshkhali Island.
AOT, established in 1947, has a global representation through their offices in Singapore and Houston. It is also known to have good connection to its government for supporting quality services in the field of energy. It has also brought reputation for the country through international trading.
“AOT is looking forward to becoming a key LNG supply partner for Bangladesh in near future and to assisting with the energy security of the country by bringing competitive and flexible LNG supplies, says James O’ Brien, Head of LNG Division, AOT Energy.
AOT is the third in the pipeline and the state minister Nasrul Hamid will send the decision to cabinet purchasing committee. The ministry is also looking for some more LNG suppliers from Indonesia, USA and other sources. Hamid said the introduction of LNG would create huge opportunities for factories whose production has long been affected due to the lack of adequate energy supply.
Apart from the two FSRUs of 500 MSCFD capacity government is keen to establish three more land-based LNG terminals at Maheshkhali and Kutubdia in Cox’sbazar and Paira Port in Patuakhali. Their feasibility study is under process, a ministry source said.
