Anisul Islam Noor :
The import of Liquefied Natural Gas (LNG) by 2017 has become uncertain after news circulates that the US farm Excelerate Energy, responsible to build LNG terminal in the Bay of Bengal, might be sold.
If the LNG import plan is suspended, the country’s economic growth would be slashed and the dream of becoming a middle-income country by 2041 will fade away, businesses said.
They are being urged by the government to invest afresh in energy-extensive industries and continue expansion of their industrial units, eyeing on the planned LNG imports, sources said.
Excelerate’s sale issue surfaced at a time when US’s oil and gas giant Chevron moved to sell its Bangladesh stakes along with other Asian stakes.
Excelerate has been contracted to build a FSRU (floating, storage and re-gasification unit) on build-own-operate and transfer (BOOT) basis.
Excelerate would have to complete construction of the FSRU within 18 months (by December 2017) as per the deal.Petrobangla separately inked a ‘confidentiality’ deal with Qatar’s Ras Gas in Doha in early October 2015 over its planned import of LNG for re-gasification in Moheshkhali LNG terminal.
Energy Division said, the new owner of the US Company might implement the project while local business people were apprehending it would create an uncertainty, causing a major setback in ensuring uninterrupted energy supplies in the country and accelerating its economic growth.
American investment bank JP Morgan has been appointed to oversee the process of its sale, which could be wrapped up by March or early in the second quarter of 2017.
Bangladesh’s long-cherished plan of importing liquefied natural gas (LNG), riding on the proposed LNG terminal, is feared to be faltered as the consequence.
The government has a target to import around 500 million cubic feet per day (mmcfd) equivalent LNG through the Moheshkhali LNG terminal by 2017.
The aim is to supply re-gasified LNG to the gas-guzzling industries and power plants to expedite the country’s economic growth. Another US firm ConocoPhillips had earlier exited from two separate deepwater blocks — DS-08-10 and DS-08 -11 — in 2014 after carrying out 2D seismic surveys due to fiscal terms what the company says was ‘poor’.
ConocoPhillips also had backed out from signing a deal for shallow-water block SS-07 as the fiscal terms were deemed not supportive for them.
When contacted, Petrobangla Chairman Istiaque Ahmad acknowledged of having the news of Excelerate being on sale vent through international media.
But, he said, Petrobangla did not yet receive any concrete decision from Excelerate.
However, even if the ownership of Excelerate is changed, its deal with the government and Petrobangla would remain operative and the new owner would implement its job timely.
The ownership of Excelerate might be changed to strengthen further its working capacity, he assumed.
“It will be a big blow for the business people if Excelerate Energy is sold to a new owner and subsequently the construction of the LNG terminal is delayed further,” First Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Shafiul Islam said.
The business people are waiting to see implementation of the LNG terminal project and starting of the import of LNG to decide for further investments in gas-guzzling industries and their expansion, he said.
According to an unofficial estimate on its values, Excelerate will be valued at a price between US$2.0 billion and $3.0 billion, which controls 10 floating storage and re-gasification units (FSRU) and one conventional LNG carrier.
Excelerate’s long-term US philanthropist investor Georse Kaiser is putting up the firm for sale, according to TradeWinds, a global news provider.
It indicated that Kaiser, 74, is keen to sell his entire position with immediate effect.
Bangladesh inked final deals in July with Excelerate Energy Bangladesh Ltd for construction of the LNG terminal at Moheshkhali Island in the Bay of Bengal.
The import of Liquefied Natural Gas (LNG) by 2017 has become uncertain after news circulates that the US farm Excelerate Energy, responsible to build LNG terminal in the Bay of Bengal, might be sold.
If the LNG import plan is suspended, the country’s economic growth would be slashed and the dream of becoming a middle-income country by 2041 will fade away, businesses said.
They are being urged by the government to invest afresh in energy-extensive industries and continue expansion of their industrial units, eyeing on the planned LNG imports, sources said.
Excelerate’s sale issue surfaced at a time when US’s oil and gas giant Chevron moved to sell its Bangladesh stakes along with other Asian stakes.
Excelerate has been contracted to build a FSRU (floating, storage and re-gasification unit) on build-own-operate and transfer (BOOT) basis.
Excelerate would have to complete construction of the FSRU within 18 months (by December 2017) as per the deal.Petrobangla separately inked a ‘confidentiality’ deal with Qatar’s Ras Gas in Doha in early October 2015 over its planned import of LNG for re-gasification in Moheshkhali LNG terminal.
Energy Division said, the new owner of the US Company might implement the project while local business people were apprehending it would create an uncertainty, causing a major setback in ensuring uninterrupted energy supplies in the country and accelerating its economic growth.
American investment bank JP Morgan has been appointed to oversee the process of its sale, which could be wrapped up by March or early in the second quarter of 2017.
Bangladesh’s long-cherished plan of importing liquefied natural gas (LNG), riding on the proposed LNG terminal, is feared to be faltered as the consequence.
The government has a target to import around 500 million cubic feet per day (mmcfd) equivalent LNG through the Moheshkhali LNG terminal by 2017.
The aim is to supply re-gasified LNG to the gas-guzzling industries and power plants to expedite the country’s economic growth. Another US firm ConocoPhillips had earlier exited from two separate deepwater blocks — DS-08-10 and DS-08 -11 — in 2014 after carrying out 2D seismic surveys due to fiscal terms what the company says was ‘poor’.
ConocoPhillips also had backed out from signing a deal for shallow-water block SS-07 as the fiscal terms were deemed not supportive for them.
When contacted, Petrobangla Chairman Istiaque Ahmad acknowledged of having the news of Excelerate being on sale vent through international media.
But, he said, Petrobangla did not yet receive any concrete decision from Excelerate.
However, even if the ownership of Excelerate is changed, its deal with the government and Petrobangla would remain operative and the new owner would implement its job timely.
The ownership of Excelerate might be changed to strengthen further its working capacity, he assumed.
“It will be a big blow for the business people if Excelerate Energy is sold to a new owner and subsequently the construction of the LNG terminal is delayed further,” First Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Shafiul Islam said.
The business people are waiting to see implementation of the LNG terminal project and starting of the import of LNG to decide for further investments in gas-guzzling industries and their expansion, he said.
According to an unofficial estimate on its values, Excelerate will be valued at a price between US$2.0 billion and $3.0 billion, which controls 10 floating storage and re-gasification units (FSRU) and one conventional LNG carrier.
Excelerate’s long-term US philanthropist investor Georse Kaiser is putting up the firm for sale, according to TradeWinds, a global news provider.
It indicated that Kaiser, 74, is keen to sell his entire position with immediate effect.
Bangladesh inked final deals in July with Excelerate Energy Bangladesh Ltd for construction of the LNG terminal at Moheshkhali Island in the Bay of Bengal.
