CPA finds LNG terminal site risky for deep-sea port

The Chittagong Port Authority (CPA) has found the site, preliminarily chosen for building a liquefied natural gas (LNG) terminal in Maheshkhali, crucial for constructing various establishments of the proposed deep-sea port, sources say.
It also considers the proposed LNG terminal 'risky' for ships while entering the port.
"The proposed site for the LNG terminal is almost at the entry point of the deep-sea port and it may create a barrier to incoming and outgoing ships. So, we suggested another place for the terminal," Nazmul Alam, deputy conservator of CPA, told the FE Thursday last.
He said Matarbari Island, located further north of the proposed area, could be suitable for the LNG terminal.
CPA secretary Mohibul Huq in a letter to the ministry of shipping (MoS) wrote that the spot selected for the LNG terminal was very much important and sensitive for the deep-sea port.
"Construction of the terminal at the chosen site will affect the port operation," he said.
Mr Huq said since many large ships would enter and exit the deep-sea port, construction of the LNG terminal at the mouth of it would be risky. Many other establishments would also be set up in that area to facilitate operation of the deep-sea port, he added.
A senior MoS official said construction of both deep-sea port and LNG terminal was now hanging in the balance.
The government is yet to select the source of fund for the deep-sea port from various proposals it received. Countries like the Netherlands, China, Germany, India, Denmark, South Korea and the UAE expressed interest to invest in construction of the port.
On the other hand, government's negotiations with the US consortium of Astra Oil and Excelerate Energy to build the LNG terminal are at the final stage. The US consortium was selected to build the LNG terminal in August 2012.