Bangladesh to Ink Final Deal to Build First LNG Terminal

Bangladesh is expected to ink final deal with Excelerate Energy by April to build the country's first LNG terminal at Moheshkhali Island in the Bay of Bengal.

A senior Petrobangla official told Financial Express Bangladesh both parties will discuss and settle all pending issues in the coming week.

Petrobangla last year signed a term-sheet for terminal-use agreement with Excelerate to build the LNG terminal. Excelerate has already carried out a met-ocean study and found building of the terminal viable, Financial Express reported. The firm is also carrying out a geo-technical study and detailed engineering design before starting construction of the LNG terminal, which will have floating storage and re-gasification unit.

The US firm will build the terminal within 16 months of signing of the final deal. The LNG import might start early 2017, the Petrobangla top official said. The terminal will have a capacity of 5 million tons per year and a re-gasification capacity of at least 500 million cubic feet per day (mmcfd).

Bangladesh is looking to import LNG from Qatar. Speaking to Qatar Tribune on the sidelines of an event in Doha earlier this month, country’s state minister for Finance and Planning MA Mannan said, “A high government level talk is currently underway with Qatari counterparts to settle the pricing and other issues related to LNG imports."

In 2011, Bangladesh signed a memorandum with Qatar for import of LNG. The memorandum was later extended.