Two global firms are vying for clinching contract to build a small floating storage and re-gasification unit (FSRU) and supply around 200-million-cubic-foot-per-day (mmcfd) re-gasified LNG to Bangladesh.
Both the multinational firms--ExxonMobil and Vitol Asia--are currently in close contact with top officials of the state-run Petrobangla and Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) to get the works.
They were among a dozen international firms that had submitted expression of interests (EOIs) to build a small-scale LNG terminal on a build-own-operate (BOO) basis and supply LNG from Sangu platform, a senior EMRD official told the FE.
Sangu platform in the Bay of Bengal is connected to a gas-processing plant in Chittagong by a seabed pipeline.
Australia's oil and gas major Santos had operated the offshore Sangu gas field to supply natural gas through Sangu platform until the closure of its operations in October 2013.
Separately, Petrobangla has picked up Trafigua and Exmar to build two small FSRUs, import LNG and supply around 400 mmcfd re-gasified LNG to two separate jetties adjacent to the state-owned Chittagong Urea Fertilizer Company Ltd (CUFL) and multinational joint-venture Karnaphuli Fertilizer Company Ltd (Kafco) on the River Karnaphuli near the Bay of Bengal, he said.
All the three small FSRUs are in addition to the currently under- construction two bigger-capacity FSRUs, said the official, requesting anonymity.
The selected firms will be responsible to build the FSRUs, import LNG, re-gasify it and supply the re-gasified LNG into a gas-transmission pipeline owned by the state-run Gas Transmission Company Ltd (GTCL) at their own costs, said the official.
Petrobangla will only purchase re-gasified LNG from the contractors.
This is the first time that Bangladesh is going to award contract to any single firm to build FSRU, import LNG and supply the fuel after re-gasifying.
The government has planned to build these small FSRUs on the basis of unsolicited offers under the Speedy Supply of Power and Energy (Special Provision) Act 2010.
The law has a provision of immunity to those involved with providing the quick-fix remedies for energy shortages in Bangladesh.
"We want the small FSRUs to start operation by August 2018," the official said.
Bangladesh is set to start importing LNG early 2018 and is making concerted efforts to move forward building up the LNG-import infrastructure.
The country's first LNG terminal, a 3.75-million-tonne-per-year FSRU, is being developed by US-based Excelerate Energy and expected to be commissioned in April 2018.
The second LNG-import terminal, also with a capacity of 3.75 million tonnes per year, being developed by Summit Group, is expected to be commissioned by October next year (2018).
Both the FSRUs will be on Moheshkhali Island in the Bay of Bengal, and ownership of the vessels will be transferred to Petrobangla after 15 years of operations.
Petrobangla also plans to set up at least two onshore LNG terminals, each with a capacity of 7.5 million tonnes per year, by 2025.
Bangladesh inked the first-ever deal on import of LNG from Qatar's RasGas in September to import 2.5 million tonnes of lean LNG annually for 15 years.
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