Qatar agrees to export LNG to Bangladesh
Sunday, 6 June 2010
FE Report
Qatar Petroleum has agreed in principle to export liquefied natural gas (LNG) to Bangladesh to meet the country's mounting natural gas demand, officials said Saturday.
The Gulf country has also intended for entering into a long-term contract with Bangladesh for supplying LNG, a senior Petrobangla official told the FE.
The Qatari company's assurance for supplying LNG came during a meeting between top officials of Qatar Petroleum and Bangladesh delegation last week.
Energy secretary Mohammad Masbahuddin led the Bangladesh delegation that returned home Saturday.
"We will soon send a formal letter to Qatar Petroleum elaborating our LNG requirement and the duration of contract," said the official.
Initially the country would require LNG equivalent to daily gas supply of 500 million cubic feet or around 3.9 million tonnes of per year, he said.
The government has moved to import LNG on urgent basis as the country's perennial gas crisis turned more acute.
Apart from the gas-guzzling industrial units -- fertiliser factories and power plants -- the residents are now facing the pinch of gas crisis due to low pressure and inadequate supplies.
Prior to the contact with Qatar Petroleum Petrobangla also held talks with several reputed global players who have the capacity to provide LNG through floating, storage and re-gasification units (FSRUs).
The energy ministry has also assigned Excelerate Energy, a US company, to complete a study to find out the best possible location for the terminal and how much it will cost.
Petrobangla also held talks with the Asian Development Bank (ADB) to arrange funding for the LNG project.
Some 20 foreign firms have shown interest to provide technical support and build the LNG terminal during the recently held overseas road shows in New York, London and Singapore.
Officials said the LNG will be supplied to the port city Chittagong on a priority basis where the supply shortfall is most acute.
"We are only able to supply 170 million cubic feet per day (mmcfd) of gas to Chittagong against demand for 300mmcfd," Petrobangla official said.
Qatar Petroleum has agreed in principle to export liquefied natural gas (LNG) to Bangladesh to meet the country's mounting natural gas demand, officials said Saturday.
The Gulf country has also intended for entering into a long-term contract with Bangladesh for supplying LNG, a senior Petrobangla official told the FE.
The Qatari company's assurance for supplying LNG came during a meeting between top officials of Qatar Petroleum and Bangladesh delegation last week.
Energy secretary Mohammad Masbahuddin led the Bangladesh delegation that returned home Saturday.
"We will soon send a formal letter to Qatar Petroleum elaborating our LNG requirement and the duration of contract," said the official.
Initially the country would require LNG equivalent to daily gas supply of 500 million cubic feet or around 3.9 million tonnes of per year, he said.
The government has moved to import LNG on urgent basis as the country's perennial gas crisis turned more acute.
Apart from the gas-guzzling industrial units -- fertiliser factories and power plants -- the residents are now facing the pinch of gas crisis due to low pressure and inadequate supplies.
Prior to the contact with Qatar Petroleum Petrobangla also held talks with several reputed global players who have the capacity to provide LNG through floating, storage and re-gasification units (FSRUs).
The energy ministry has also assigned Excelerate Energy, a US company, to complete a study to find out the best possible location for the terminal and how much it will cost.
Petrobangla also held talks with the Asian Development Bank (ADB) to arrange funding for the LNG project.
Some 20 foreign firms have shown interest to provide technical support and build the LNG terminal during the recently held overseas road shows in New York, London and Singapore.
Officials said the LNG will be supplied to the port city Chittagong on a priority basis where the supply shortfall is most acute.
"We are only able to supply 170 million cubic feet per day (mmcfd) of gas to Chittagong against demand for 300mmcfd," Petrobangla official said.