Petrobangla, local co sign term sheet on LNG terminal
Wednesday, 18 October 2017
State-owned Petrobangla on Tuesday signed a term sheet for LNG Terminal Use Agreement with local company Hong Kong Shanghai Manjala Power Limited (HSMPL) and its foreign partners, reports UNB.
As per the contract, HSMPL and its consortium partners Global LNG and Petronas LNG Limited of Malaysia will set up 500 mmcfd capacity LNG terminal with FSU and Fixed Jetty Based Re-gasification Unit at Kutubdia of Cox's Bazar.
Petrobangla officials said this is the third agreement for setting up LNG terminal with storage and re-gasification facilities in the private sector.
Earlier, the Petrobangla signed similar agreements with US-based Excelarate Energy and local Summit Group to set up similar capacity terminal.
The government has planned to import LNG and supply it to local consumers through re-gasification at these terminals.
For receiving the service, the government will have to pay $1.6 billion to each of the companies for their services.
Petrobangla Secretary Syed Asfaquzzaman and HSMPL CEO Kazi Omar Zafar signed the term sheet contract on behalf of their respective sides.
Ruling Awami League leader Kazi Zafrullah who owns HSMPL, his wife Nilufar Zafrullah, MP, Energy Secretary Nazimuddin Chowdhury and Petrobangla Chairman Abul Mansur M Faizullah were present at the contract signing ceremony held at Petrobangla office in the city.
HSMPL will set up the LNG terminal on build-own-operate basis for 15 years of operation.
At present, gas supply stands at about 2,700 million cubic feet per day against the demand for 3,300 mmcfd.
The gas shortage has prompted the government to import LNG and re-gasify it through the terminal and its facilities.
The HSMPL-led consortium will set up the terminal within 18-20 months of signing the final agreement.
Petrobangla will pay HSMP $158,200 as fixed component fee and $30,500 as port service charge per day.
However, in case of Summit, the fixed component fee will be $158,511. The fixed component fee and port service charge for Excelerate Energy will be $159,186 and $32,000 a day respectively. Summit Group and Excelerate Energy will set up LNG terminals at Moheshkhali Island.