Two foreign cos to build LNG terminal in Cox\'s Bazar

The government is set to allow two foreign companies for constructing a floating liquefied natural gas (LNG) terminal on Kutubdia Island in Cox's Bazar to bridge the existing gap between the demand and supply of natural gas in the country, officials said.
Under the move, the cabinet committee on economic affairs is set to approve the project in the upcoming meeting scheduled for August 09.
Hong Kong-Shanghai Manjala Power Ltd Co (HSMPL) with Global LNG and Petronas, Malaysia will build a LNG terminal having the capacity of 500 million cubic feet (mmcf) along with the facility of floating storage unit (FSU) and fixed jetty-based re-gasification unit.
The companies will develop the LNG terminal on build, own, operate and transfer (BOOT) basis.
LNG will be "quickest and cost-effective" to meet the primary fuel demand as the current supply of gas will start falling in 2018.
The proposed floating LNG terminal will have a capacity to supply 500 mmcf of natural gas per day.
Natural gas is being used for power generation, industrial, commercial, motor vehicles and household and other purposes.
In 2016, the production of natural gas was 2,742 million cubic feet per day. But in 2041, the total demand for natural gas for different purposes will rise to 8,000 mmcfd.
Petrobangla singed a non-binding agreement with Hong Kong-Shanghai Manjala Power Ltd Co (HSMPL) with Global LNG and Petronas, Malaysia on November 11 last year.  
The demand for natural gas is higher than the existing production.
As a result, the government is going to import LNG for meeting the growing demand, according to the ministry of power, energy and mineral resources (MoPEMR).
"We have sent a project proposal to the cabinet division, seeking approval from the cabinet committee on economic affairs for setting up a LNG terminal at Kutubdia in Cox's Bazar," a high official of MoPEMR told the FE.
    talhabinhabib@yahoo.com