LNG terminals to accelerate investment: experts
Saturday, 24 February 2018
The country's first two liquefied natural gas (LNG) terminals, which are set to go into operation this year, will accelerate both local and foreign direct investment (FDI) in Bangladesh through ensuring energy security and meeting its growing demand, experts said.
"According to the schedule, the country's first floating LNG terminal will supply LNG to the national grid from June, which will ensure energy security and increase the flow of investment," Energypac Power Generation Ltd (EPGL) Managing Director and Chief Executive Officer (CEO) Humayun Rashid said on Friday.
The government is constructing two Floating Storage and Re-gasification Unit (FSRU) Terminals at Moheskhali in Cox's Bazar district, reports BSS.
Singapore-based Excelerate Energy is setting up the first FSRU having 500 million metre standard cubic feet a day (mmscfd) capacity at Moheshkhali in the Bay of Bengal, which will be operational from May this year.
Summit LNG Terminal Company, a unit of Summit Group, is also developing the second floating facility at its own cost having 500 mmcfd a day capacity, which is likely to open in October this year.
The government also signed an agreement with Qatar's state-owned RasGas Company in 2017 for importing yearly 1.8 million tonnes LNG under G2G process.
The import is likely to increase up to 2.5 million annually.
Besides, the government is taking a series of projects to meet the growing energy demand and ensure the energy security.
Mr Rashid said the government projects would augment energy supply smoothly and meet the increasing demand as the country had been experiencing shortage of energy for many years.
CPD Research Director Khondaker Golam Moazzem said that Bangladesh is entering a new era through the LNG terminals, which will accelerate the investment flow as many investors are waiting for gas to open their industry.
"Everyone knows that Bangladesh is going through gas crisis. If the terminal can start the supply of gas to the national grid, there will be a positive impact on the country's industrial sector," he added.
Mr Moazzem urged the authorities to build more terminals as early as possible, saying the initiative of the government will play a vital role in boosting the economy.