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Avoiding any damage from cyclone

2 oil cargoes, LNG vessel taken off to deep sea

M AZIZUR RAHMAN | May 27, 2024 00:00:00


Two oil cargoes and an LNG tanker vessel were taken off to deep sea near Kutubdia island as a precautionary measure to avoid any damage from cyclone 'Remal'.

The LNG vessel - Gaslog Geneva - was unloading lean liquefied natural gas (LNG) to one of the two floating, storage and re-gasification units (FSRUs) until the formation of the cyclone, a senior Petrobangla official said.

Later, it halted LNG delivery to the FSRU and left Moheshkhali area for deep water in the Bay of Bengal near Kutubdia channel.

Gaslog Geneva is set to re-initiate LNG delivery to the FSRU after the landfall of the severe cyclone and normalcy in the sea.

The Petrobangla has squeezed overall LNG re-gasification from the FSRUs to less than one-third to 320 million cubic feet per day (mmcfd) over the past couple of days to avoid any damage of the FSRUs and the mooring facility.

Unlike the previous cyclone 'Mocha', the government high-ups and technical officials concerned have this time instructed the FSRUs to keep tied with the mooring facility.

LNG re-gasification, however, started mounting in the evening as the direction of Remal was away from Moheshkhali island, where the country's both the FSRUs are located.

It reached around 700 mmcfd in the evening and expected to rise to 1,000 mmcfd at night.

LNG re-gasification with regular volume of around 1,100 mmcfd from the FSRUs is expected after the landfall of the storm today (Monday).

The Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) has instructed officials of two power entities of southern region - the Rural electrification Board (REB) and the West Zone Power Distribution Company Ltd (WZPDCL) - to remain alert to the preparedness of cyclone Remal.

Officials of the Geological Survey of Bangladesh (GSB) have been asked to be prepared to face any challenges out of any earthquake and landslide due to the cyclone.

The energy and mineral resources division under the MPEMR has warned of having lower than expected natural gas pressure in different areas across the country due to inclement weather and expressed sorrow to the clients as the consequences.

Sources said during the previous cyclone 'Mocha' in May last year, both the FSRUs had to cease operations, which had triggered an acute power and gas crisis, hampering businesses across the country.

The country's main port city of Chattogram, which is dependent entirely on re-gasified LNG from FSRUs, was almost non-functional, with businesses halting operations completely. To avoid any demurrage or penalty resulting from the late unloading of LNG cargoes from suppliers during the Mocha alert period, Bangladesh had sought to apply the force-majeure provision.

It recently wrote to the country's two long-term LNG suppliers - Qatargas and OQ - previously named as Oman Trading International, to execute the force majeure provision as per the contract.

Force majeure is a common contractual clause that relieves both parties from liability or obligation when an extraordinary event or circumstance beyond their control, such as war, strike, riot, crime, epidemic, or sudden legal change, prevents one or both parties from fulfilling their obligations.

The Petrobangla had to reschedule the delivery of at least five LNG cargoes when the country's floating LNG terminals were shut, said sources. Bangladesh had to defer deliveries of LNG cargoes from both long-term suppliers along with spot supplier TotalEnergies during the Mocha mayhem.

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