The state-owned North-West Power Generation Company Ltd (NWPGCL) will check whether import of re-gasified LNG from India or building LNG import facility and subsequent import of LNG would be feasible for supplying fuel for implementing a 750-800 megawatts (MW) combined cycle power plant project in Khulna, a top official said Monday.
It has already sought appointment of an international consultant to carry out a feasibility study on the import of re-gasified liquefied natural gas (LNG) through cross-border purchase from neighbouring India to run the power plant in the longer term.
The consultant will also see whether installation of a floating storage re-gasification unit (FSRU) near the Mongla Port or building an onshore LNG terminal with storage and re-gasification facilities will be suitable to implement the power plant project.
NWPGCL has planned to re-gasify at least 1.0 million tonnes of LNG per annum and build at least 175,000 cubic meters LNG storage capacity to facilitate necessary fuel supply for the plant.
"Our initial aim is to import re-gasified LNG from India to implement our planned power plant project," NWPGCL managing director A M Khurshedul Alam told the FE.
"But at the same time we want to see if it is feasible for us to build a LNG terminal and establish LNG import facility of our own to execute the power plant project," he added.
NWPGCL has already held talks to import around 125 million cubic feet per day (mmcfd) equivalent of re-gasified LNG from India's West Bengal by June 2018 to run the planned power plant project.
The LNG import might be extended to 500 mmcfd and 1.0 billion cubic feet per day (Bcfd) in future, depending on requirement, Mr Alam said.
It held talks with the state-owned Gas Authority of India Limited (GAIL) and H Energy to facilitate import of LNG for the power plant in south-western Bangladesh.
A 10-member joint working group has already been constituted with five members from NWPGCL and as many from GAIL and H Energy to implement the project on LNG import from the planned offshore terminal of West Bengal.
A Bangladeshi delegation visited India in June and held talks with Indian companies to move forward its plan to import the fuel from there.
India's H-Energy is working to build a LNG terminal with 8 million tonne per year capacity in West Bengal's Digha area, said sources.
Indian authority is expected to issue work order for building the LNG terminal by June 2015. Its construction will be completed within three years to facilitate LNG import by June 2018, the NWPGCL top brass said while elaborating the outcome of discussion with GAIL and H Energy.
Construction of a total of 118 kilometre-long pipeline -- Kolkata-Benapole (72 km) and Benapole-Jessore (46 km) -- will be required to pump the LNG from India into Bangladesh's national gas grid.
Another state-owned company - the Gas Transmission Company Ltd (GTCL) - will build the gas-transmission pipeline inside Bangladesh, while GAIL of India will build it on their side.
The Manila-based Asian Development Bank (ADB) might finance the US$ 700 million LNG-based power-plant project in Khulna, he hoped.
Officials said the government has moved to import LNG by different means to cope with the mounting natural gas demand.
Different state-run companies have moved to build LNG import facilities, following the government's directives to diversify the country's energy sources.
As part of the moves, Petrobangla signed a preliminary agreement with US Astra Oil and Excelerate Energy on June 26 to build the country's first LNG import terminal at Moheshkhali Island in the Bay of Bengal.
The offshore terminal will have a capacity of 5.0 million tonnes per year. A final deal is to be inked on completion of legal vetting and approval by a cabinet committee.
Separately, Power Cell, a state-owned entity under the Ministry of Power, Energy and Mineral Resources (MPEMR), is currently evaluating 15 expressions of interest (EoIs) to build and take a majority stake in Bangladesh's first onshore LNG terminal, to be located at Matarbari on Moheshkhali Island.
Power Cell has moved to build the onshore LNG terminal in the south -- with a handling capacity of 3.5 million tonnes per year -- on build-own-operate basis.
Bangladesh inked a memorandum of understanding (MoU) with Qatar in January 2011 to import 4 million tonnes of LNG per year from Qatar Petroleum. The MoU has been extended until June 2015. Final import deal of LNG is, however, yet to be signed.
LNG terminals are crucial for the country, as it is reeling from an acute gas crisis due to fast depletion of current reserves and dearth of new discoveries. Bangladesh's overall gas output currently stands at around 2,320 mmcfd against the demand for 3,000 mmcfd.
