Petrobangla is waiting for reports on the geotechnical and geophysical studies for implementation of the country’s first floating LNG terminal in Maheshkhali of Cox’s Bazar, said a top official of the state-owned hydrocarbon corporation. Singapore-based subsidiary of Excelerate Energy, a US company, has been implementing the project as a private sector initiative under an agreement with Petrobangla. “Excelerate Energy has recently completed geotechnical and geophysical studies for the project and they’re now carrying out tests on the study findings outside the country. We’re waiting for the reports,” Rafiqul Islam, a deputy director of Petrobangla, told UNB.
He also informed that the private sponsor of the project is going ahead as per the timeline. “We’re within the timeline of the project and everything is going on as per the schedule,” he added. Officials said once the test reports are approved by Petrobangla, the Excelerate Energy will start the physical works to construct the terminal.
Petrobangla signed the final deal with Excelerate Energy Bangladesh Limited (EEBL) on July 18 last year to set up the LNG terminal in Maheshkhali to have a daily supply of 500 million cubic feet (MCF) of natural gas for feeding the country’s energy-starved industries and power plants. Bangladesh is currently producing about 2,700 mmcfd gas against its demand of 3,200 mmcfd, showing a shortfall by 500 mmcfd. As per the deal, Excelerate Energy will set up the terminal within the next one and half years on build-own-operate-and-transfer (BOOT) basis.
The LNG terminal will have the facilities of 138,000 cubic metres capacity floating storage and re-gasification unit (FSRU). Excelerate Energy will fully develop, design, permit, construct, install, finance and operate the terminal. This structure will allow for a single point of interface and responsibility to Petrobangla and provide seamless operations for the Bangladeshi market. Excelerate will own and operate the terminal under a 15-year agreement with Petrobangla. Under the contract with the hydrocarbon corporation, Excelerate will provide a floating storage and regasification unit (FSRU), an offshore subsea buoy system to anchor the FSRU, and a subsea pipeline to interconnect into the onshore natural gas system. In addition, it will provide full operational services, including the provision of port service vessels and overall facility management. The FSRU will be capable of delivering natural gas at a base regasification rate of 500 million standard cubic feet per day, with peaking capacity substantially in excess of this.
The project is expected to achieve financial close early this year, which will allow for the construction and installation of the terminal to commence. IFC is mandated to provide and arrange the financing for the project. Excelerate is in final negotiations for the major project contracts including EPC, O&M, and Port Services.
