The government would require US$844.20 million to import around 1,000 million cubic feet per day (mmcfd) equivalent of LNG (liquefied natural gas) annually and its re-gasification in two FSRUs before supplying to users.
The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) has estimated the LNG import cost recently to fix domestic natural gas prices after import of expensive LNG, said a senior MPEMR official.
He said the energy ministry has calculated the LNG import cost in line with the LNG price as set in the sales and purchase agreement (SPA) between Qatar's RasGas and Petrobangla and costs as set in the terminal use agreements (TUAs) and implementation agreement (IAs) with US-based Excelerate Energy and local Summit Group.
The purchase price of LNG from RasGas has been set at around 12.65 per cent of the three-month average Brent crude prices plus 50 cents per million British thermal unit (MMBtu), he said.
At current levels the LNG price would be around $6.50 per Mcf (1,000 cubic feet), he added almost three times the weighted average price of natural gas in Bangladesh at $2.19 per Mcf.
Excelerate Energy and Summit Group are developing two floating, storage and re-gasification unit (FSRU)-based LNG import terminals having the capacity of 500 mmcfd each at Moheshkhali Island in the Bay of Bengal.
LNG import costs in each of the FSRUs would be $422.10 million, according to the estimate.
Bangladesh is expecting to start LNG imports in early 2018 and is making concerted efforts to move forward with relevant infrastructure.
The country's first FSRU-based LNG import terminal being developed by Excelerate is expected to be commissioned in April 2018 and another terminal having the same capacity being developed by Summit is expected to be commissioned by October 2018.
The third FSRU-based LNG import terminal having the similar capacity of 3.75 million tonnes per year or 500 mmcfd per year will be built by Indian Reliance at Kutubdia Island.
Bangladesh is also planning to purchase around 600 mmcfd in total from three small FSRUs to be built by contractors at two separate jetties adjacent to state-owned Chittagong Urea Fertilizer Company Ltd (CUFL), and multi-nationally owned joint venture Karnaphuli Fertilizer Company Ltd (Kafco) on the River Karnaphuli near the Bay of Bengal and Sangu platform in the Bay.
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