Staff Reporter :Petrobangla and US-based Excelerate Energy signed implementation agreement on Monday to build the Moheskhali Floating LNG Terminal.It is Bangladesh’s first terminal to handle imported liquefied natural gas and meet growing demand for the energy in the country.Two separate agreements have signed between Energy and Mineral Resources Division (EMRD) and Excelerate Bangladesh Limited for implementing the project, Deputy Secretary of EMRD Zonenthra Nath Sarker signed the deal on behalf of EMRD. Petrobangla Secretary Syed Ashfakuzzaman signed in Terminal Use Agreement, while Chief Development Officer Daniel Bustos signed on behalf of Excelerate Limited in both the agreements.The terminal will be implemented with floating ship having capacity of supplying 500MMCF gas daily. Petrobangla will have to spend $1.6 billion annually to increase the supply of natural gas by 500 MMCF per day, according to a handout distributed after the signing of the agreement. The price of per unit gas may stand at Tk 17, which is six times higher rate that the domestic natural gas.The terminal known as a floating storage and re-gasification unit will be set up on the island of Moheshkhali in the Bay of Bengal.The unit will provide natural gas to Chittagong which has been facing an acute gas crisis for a long time.Prime Minister’s Energy Adviser Tawfiq e Elahi Chowdhury was present at the function as chief guest. While State minister for Power, Energy and Minarel Resources Nasrul Hamid and US ambassador to Dhaka Marcia Bernicat were present as special guest so. Istiaque Ahmed, chairman of Petrobangla spoke at the function. Energy Secretary Nazimuddin Chowdhury presided over the signing ceremony.The agreement is the first step of the government to alleviate the gas crisis in the long-run, Nasrul Hamid, State Minister for Power, Energy and Mineral resources, said at the deal signing ceremony. Excelerate Energy, the pioneer and market leader in innovative floating LNG solutions, would develop the terminal in 18 months and operate it for the next 15 years to facilitate a supply of 500 million cubic feet of natural gas per day from imported LNG.A 90km pipeline of 30-inch diametre will carry the gas from the floating terminal to Anowara to feed the national grid. The LNG will be imported from Qatar.The LNG import is expected to start in early 2018.In 2010, the government took the step to import LNG in the wake of declining reserves of natural gas which has worsened the gas crisis. The government plans to set three more LNG terminals. Bangladesh is now reeling from an acute natural gas crisis with the daily average output of around 2,700 mmcfd against the demand for over 3,200 mmcfd.Petrobangla on January 25 inked a term-sheet for the terminal-use agreement with Excelerate to build the LNG import terminal after several rounds of negotiations and revising initial fiscal and technical terms.Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister, said the overall cost for handling and re-gasification of the imported LNG would be $0.59 for each thousand cubic feet of gas.The people of the country are always like hospitality for foreign national inheriting, against terrorism, he said.Nasrul Hamid said, “We expected more American investment in Bangladesh”.
