Energy Ministry yet to decide location for LNG terminal

The Energy Ministry is yet to decide the location of the LNG (liquefied natural gas) terminal to be offered to Russia and built under a state-to-state deal, reports UNB. "We've not yet decided whether the proposed LNG terminal would be built at Moheshkhali or elsewhere in Chittagong region," said a senior official at the Energy Ministry. He mentioned that as per a directive of the Prime Minister (PM), the Energy Ministry has asked the Petrobangla to contact a potential Russian company and initiate move for negotiation to build the LNG terminal and set up a Floating Storage Regasification Unit (FSRU). "The issue of selection of a suitable location for the project will come next," the official told the news agency, wishing anonymity as he is not officially authorized to speak on the issue. He also said that the existing Moheshkhali site or any new location might be selected later if any state-owned Russian firm agrees to accept the Bangladesh offer. PM Sheikh Hasina recently directed the Energy Ministry to move for building an LNG terminal with Russian help, particularly of the Russian oil major Gazprom which already entered into a number of deals with Petrobangla for gas exploration and production. The directive came during an ECNEC meeting early this month as a "top-down" decision when an energy-related issue was discussed. Officials said the PM, at one stage of the discussion at ECNEC, wanted to know about the latest development on the LNG terminal and gave her instant directive to seek Russian help as she learnt that an existing move for LNG terminal is facing delay. Generally, any proposal goes to the highest policy level from the bottom of the administration passing through different procedures. "But, in the case of LNG terminal, the decision came from the top," said the Energy Ministry official. Following the Prime Minister's directive, the Energy Ministry instructed the state-owned Petrobagngla to move for Russian help. But, interestingly, it was learnt that the Russian company Gazprom or any such oil producing company does not get involved in LNG terminal construction business.