AEC to submit feasibility study on floating LNG terminal in May

The Singapore-based Astra Oil and Excelerate Energy Consortium (AEC) would submit its 'met ocean study' report within the next 15 days for establishing a Floating Storage Re-gasification Unit (FSRU) at Moheshkhali area of the Bay of Bengal, reports BSS.

"The AEC would submit its study report within the next month for construction of the LNG floating terminal," secretary of the Energy and Mineral Resources Division of Power, Energy and Mineral Resources Ministry Abubakar Siddique told the news agency Sunday.

He said the AEC has already submitted their draft study report to the ministry and assured of submitting the final report in May. "The government has decided to construct the first ever liquefied natural gas (LNG) terminal aiming at importing LNG to meet the growing demand for energy in the country," Mr Siddique added.

He said the Singaporean company also sought 18-month for construction of the floating LNG terminal at Moheshkhali.

Officials of the ministry said the state-run Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has signed a term-sheet agreement with Astra Oil and Excelerate Energy Consortium on February 25, 2015 to set up the floating storage and FSRU terminal at its own cost.

The officials added that the LNG terminal having a capacity of 1,38,000 cubic metre LNG is expected to supply 500 million metre standard cubic feet per day (mmscfd) from the FSRU based LNG terminal by 2016.

As per the deal, the contractor will implement the project at Maheshkhali area of the Bay of Bengal on Build-Own- Operate-Transfer (BOOT) basis and it would be transferred to the government after 15 years.