UNB, Dhaka :
State-owned Petrobangla on Wednesday signed a ‘term-sheet for terminal use agreement’ with Euro-American joint venture company Excelerate Energy Limited Partnership (EELP) in order to set up an LNG (liquefied natural gas) terminal in the country to facilitate import of the gas.
Under the deal, the company, which won the
contract on unsolicited basis, will get the scope for conducting a ‘metocean study’ prior to its move for installing the LNG terminal having a floating storage and re-gasification unit (FSRU) at Maheshkhali of greater Chittagong region.
Experts say this study will cover ‘meteorology’ and ‘ceanography’ at the location at the coast of Bay of Bengal to determine physical environment near an offshore platform.
Once the study is accepted by the Petrobangla and approved by the Cabinet Purchase Committee, then the EELP will get the opportunity to sign a final deal with Petrobangla, the principal hydrocarbon agency of Bangladesh.
Then EELP, a subsidiary of the consortium of American Excelerate Energy and Switzerland-based Astra Transcor Energy, will set up the LNG terminal on build-own-operate-Transfer (BOOT) basis within 18 months targeting to start its operation from early 2017.
The FSRU will have a reserve capacity of 138,000 cubic metre LNG while the terminal will have a capacity to supply 500 million cubic feet gas per day (mmcfd).
Then Petrobangla will sign a ‘terminal use agreement’ with the EELP for 15 years and pay $0.474 per mmbtu including other charges on Take or Pay basis to use the facility.
As per this estimation, the EELP will be paid annually grossly $ 86.5 million by Petrobangla to use the terminal and FSRU facilities.
State-owned Petrobangla on Wednesday signed a ‘term-sheet for terminal use agreement’ with Euro-American joint venture company Excelerate Energy Limited Partnership (EELP) in order to set up an LNG (liquefied natural gas) terminal in the country to facilitate import of the gas.
Under the deal, the company, which won the
contract on unsolicited basis, will get the scope for conducting a ‘metocean study’ prior to its move for installing the LNG terminal having a floating storage and re-gasification unit (FSRU) at Maheshkhali of greater Chittagong region.
Experts say this study will cover ‘meteorology’ and ‘ceanography’ at the location at the coast of Bay of Bengal to determine physical environment near an offshore platform.
Once the study is accepted by the Petrobangla and approved by the Cabinet Purchase Committee, then the EELP will get the opportunity to sign a final deal with Petrobangla, the principal hydrocarbon agency of Bangladesh.
Then EELP, a subsidiary of the consortium of American Excelerate Energy and Switzerland-based Astra Transcor Energy, will set up the LNG terminal on build-own-operate-Transfer (BOOT) basis within 18 months targeting to start its operation from early 2017.
The FSRU will have a reserve capacity of 138,000 cubic metre LNG while the terminal will have a capacity to supply 500 million cubic feet gas per day (mmcfd).
Then Petrobangla will sign a ‘terminal use agreement’ with the EELP for 15 years and pay $0.474 per mmbtu including other charges on Take or Pay basis to use the facility.
As per this estimation, the EELP will be paid annually grossly $ 86.5 million by Petrobangla to use the terminal and FSRU facilities.
