ADB keen to help build LNG import terminal
Thursday, 11 February 2010
FE Repot
The Asian Development Bank (ADB) has shown interest to provide funds to build the country's first liquefied natural gas (LNG) import terminal worth over US$ 1.0 billion and assuage the mounting energy crisis, officials said.
"The ADB expressed that it would come up with monetary support for building the LNG terminal if the government moves forward with the project," Petrobangla Chairman Dr Hossain Monsur told the FE Tuesday.
The Manila-based multilateral donor agency also told Petrobangla to prepare terms of reference (ToR) for the proposed LNG project to approve lending of fund, the Petrobangla chairman said.
A delegation of the ADB's consultation mission led by Priyantha Wijeytunge held discussions Tuesday with Petrobangla top officials over the LNG project.
The government has already decided to build at least one 3.5 million-tonne capacity LNG import terminal to meet the country's long-term energy needs.
It is also working for immediate import of LNG to supply natural gas to the country's gas-hungry industries and power plants in the port city Chittagong via special tankers known as floating, storage, re-gasification units or FSRUs.
The country offered the project along with several large power plant projects before global investment players during the recently-held three roadshows in London, New York and Singapore.
Some 20 foreign LNG firms took part in the roadshows to provide technical support and supply LNG to Bangladesh, the Petrobangla chairman said.
Ecomtrade Holding Pte Ltd, Golar LNG Energy, IST Gas Asia Pacific BP Singapore Pte Ltd, Saipem FSRU FPSO, Shell Trading, Mitsui and Company Pte Ltd, Vitol Asia Pte Ltd, Worley Parsons Resources and Energy, Adani Group and Petronas LNG took part in Singapore roadshow in January 25-26 last.
Eight firms - CH-Iv International, Global Edison, Greentek Energy, Poten and Partners Inc, Clem Potter, Omnicom Pte Ltd and Index Capital Group - participated in New York roadshow during January 28-29.
SBM Imodco was the lone company that participated in London roadshow.
Several foreign firms including the US's Poten & Partners and Excelerate Energy would be visiting the country next month to search out an ideal spot to build the LNG terminal.
"During Tuesday's meeting we told ADB that the government has not yet assessed the actual cost of the proposed LNG terminal project," said Dr Monsur.
But if we seek ADB assistance, the finance should be released soon, he stressed.
The ADB mission also inquired about the country's other energy projects undertaken by the government to quickly fix the energy crisis.
A senior energy ministry official said the government has planned to import LNG immediately to supply natural gas to Chittagong where the supply shortfall is the most acute.
Currently Petrobangla is supplying nearly 170 million cubic feet of gas per day (mmcfd) to Chittagong against the demand for 300 mmcfd.
Drastic fall in gas supply from the country's lone offshore Sangu gas field, which was once the lifeline for Chittagong, caused the energy crisis in the port city, he added.
Sangu is now supplying only around 35 mmcfd of gas down from 220 mmcfd several years ago.
Besides, the overall gas supply shortfall across the country has pushed Petrobangla to suspended gas supplies to new industries and rationing of gas consumption in fertiliser factories, power plants and industries.
Officially the country's gas demand stands at around 2,200 mmcfd but the hidden demand would be much more, Petrobangla officials said.
Country's overall gas supply is hovering around 1980 mmcfd.
The Asian Development Bank (ADB) has shown interest to provide funds to build the country's first liquefied natural gas (LNG) import terminal worth over US$ 1.0 billion and assuage the mounting energy crisis, officials said.
"The ADB expressed that it would come up with monetary support for building the LNG terminal if the government moves forward with the project," Petrobangla Chairman Dr Hossain Monsur told the FE Tuesday.
The Manila-based multilateral donor agency also told Petrobangla to prepare terms of reference (ToR) for the proposed LNG project to approve lending of fund, the Petrobangla chairman said.
A delegation of the ADB's consultation mission led by Priyantha Wijeytunge held discussions Tuesday with Petrobangla top officials over the LNG project.
The government has already decided to build at least one 3.5 million-tonne capacity LNG import terminal to meet the country's long-term energy needs.
It is also working for immediate import of LNG to supply natural gas to the country's gas-hungry industries and power plants in the port city Chittagong via special tankers known as floating, storage, re-gasification units or FSRUs.
The country offered the project along with several large power plant projects before global investment players during the recently-held three roadshows in London, New York and Singapore.
Some 20 foreign LNG firms took part in the roadshows to provide technical support and supply LNG to Bangladesh, the Petrobangla chairman said.
Ecomtrade Holding Pte Ltd, Golar LNG Energy, IST Gas Asia Pacific BP Singapore Pte Ltd, Saipem FSRU FPSO, Shell Trading, Mitsui and Company Pte Ltd, Vitol Asia Pte Ltd, Worley Parsons Resources and Energy, Adani Group and Petronas LNG took part in Singapore roadshow in January 25-26 last.
Eight firms - CH-Iv International, Global Edison, Greentek Energy, Poten and Partners Inc, Clem Potter, Omnicom Pte Ltd and Index Capital Group - participated in New York roadshow during January 28-29.
SBM Imodco was the lone company that participated in London roadshow.
Several foreign firms including the US's Poten & Partners and Excelerate Energy would be visiting the country next month to search out an ideal spot to build the LNG terminal.
"During Tuesday's meeting we told ADB that the government has not yet assessed the actual cost of the proposed LNG terminal project," said Dr Monsur.
But if we seek ADB assistance, the finance should be released soon, he stressed.
The ADB mission also inquired about the country's other energy projects undertaken by the government to quickly fix the energy crisis.
A senior energy ministry official said the government has planned to import LNG immediately to supply natural gas to Chittagong where the supply shortfall is the most acute.
Currently Petrobangla is supplying nearly 170 million cubic feet of gas per day (mmcfd) to Chittagong against the demand for 300 mmcfd.
Drastic fall in gas supply from the country's lone offshore Sangu gas field, which was once the lifeline for Chittagong, caused the energy crisis in the port city, he added.
Sangu is now supplying only around 35 mmcfd of gas down from 220 mmcfd several years ago.
Besides, the overall gas supply shortfall across the country has pushed Petrobangla to suspended gas supplies to new industries and rationing of gas consumption in fertiliser factories, power plants and industries.
Officially the country's gas demand stands at around 2,200 mmcfd but the hidden demand would be much more, Petrobangla officials said.
Country's overall gas supply is hovering around 1980 mmcfd.