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Petrobangla inks MoU with Gunvor for LNG supply
Petrobangla, the state-run oil, gas and mineral resources corporation, on Tuesday signed another non-binding memorandum of understanding (MoU) with trading agency Gunvor Singapore Pte Ltd to procure liquefied natural gas (LNG). The MoU was signed at a function at Petro Center in Dhaka. Petrobangla Secretary Syed Ashfaquzzaman and Speeleveled, Head of LNG-BD Asia of Gunvor Singapore PTE Ltd, signed the MoU on behalf of their respective sides. With this, Petrobangla tied up with five companies to facilitate LNG imports. Bangladesh signed its first MoU to import LNG with Qatar in 2011, then this year did MoUs with Switzerland-based AOT Energy on June 13, Oman Trading International of Oman in early September and Pertamina of Indonesia on September 15. About the MoU, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, who was present at the signing ceremony as the chief guest, said the government would ensure energy security by supplying primary fuel continuously. "Mixed gas will be supplied to the industries by mixing LNG with natural gas that would lead to slight price hike but would be more profitable for the businessmen," he said. He said the gas crisis in the country would be reduced from April next year. Besides long-term agreements with different state-owned enterprises, the government would also explore spot markets and invite tenders for mid-to-long-term contracts to import LNG. Petrobangla and Gunvor will prepare document for commercial agreement later. Besides, 41 companies expressed their interest for LNG purchase from spot market and the Masters Sales Procurement Agreements (MSPA) would be signed after preparing the panel, said Nasrul. He said in the first phase, 500 mmcfd LNG will be used in Chittagong region from April 2018, while 500 mmcfd LNG would be supplied for the middle part of the country from October 2018 in the second phase. Petrobangla now supplies approximately 2,750 million cubic feet per day against a demand for more than 3,700 mmcfd gas leading to interruption on power generation and industrial productions. Among others, Secretary of Energy and Mineral Resources Division Nazimuddin Chowdhury and Petrobangla chairman Abul Mansur Md Fayzullah spoke at the function.
Bangladesh looks to import LNG from Indonesia
September 16, 2017 Saturday 12:02 PM By News Desk, energynewsbd.com
Bangladesh`s Petrobangla is in discussion with Indonesia`s Pertamina to import more than 1.0 million tonnes of liquefied natural gas (LNG) from the state energy company as early as 2018. Under an initial agreement signed by the energy ministers of both countries on September 15, Indonesia will continue discussions with Bangladesh to develop LNG infrastructure in the South Asian country, and potentially supply LNG to Bangladesh, said a press release. "Bangladesh is going hungry for the energy day by day," said Nasrul Hamid, Bangladesh`s minister for electricity, energy and mineral resources. "We are looking for more opportunities in LNG," Hamid said. Pertamina Gas Director Yenni Andayani said the agreement was "just the beginning, opening opportunities to develop business." Bangladesh, a country of more than 160 million people, may import as much as 17.5 million tonnes of LNG a year by 2025, as its domestic gas reserves dwindle and demand grows. Bangladesh expects to sign its first ever LNG import deal in Qatar later this month to help cover a shortfall of domestic natural gas, underscoring the rise of South Asia as a new marketfor the fuel. Petrobangla is finalising several floating storage and regasification units, the first of which is expected to commence operations in April 2018, said Petrobangla chairman Abul Mansur Md Faizullah in Jakarta on Friday. The state company is in discussions with several potential LNG suppliers. "At present we are with Pertamina. We have not decided it yet," Faizullah told reporters, referring to the potential deal with Indonesia`s national oil and gas company. "The initial perception is it might be 1.0 million tonnes per year," he said. Petrobangla is seeking about 7.0 million tones per year of LNG from next year from several sources, he said.
Category: Gas
Bangladesh set to sign 15-year LNG import deal with Qatar
September 14, 2017 Thursday 8:35 AM By News Desk, energynewsbd.com
Bangladesh will sign a 15-year deal with Qatar’s RasGas Co to import liquefied natural gas (LNG) starting in 2018 as the country transforms into a major consumer of the supercooled fuel, two officials told Reuters. The deal will be signed on September 25 in Qatar, said Mohammad Quamruzzaman, Managing Director of the Rupantarita Prakritik Gas Co, part of state-owned oil firm Petrobangla. Under the deal, RasGas will supply 1.8 million tonnes a year of LNG for the first five years and to 2.5 million tonnes over the next 10 years, the Petrobangla officials said. The agreement is Bangladesh’s first LNG import agreement ever. Qatar is the world’s biggest LNG exporter and the fuel will cover the country’s domestic natural gas shortfall.
Category: Gas
Govt to ensure energy security by increasing gas production: Tawfiq
August 10, 2017 Thursday 12:34 PM By BSS
Prime Minister`s Power, Energy and Mineral Resources Affairs Adviser Dr Tawfiq-e-Elahi Chowdhury on Wednesday said the government is working to increase gas production alongside importing liquefied natural gas (LNG) to meet energy demand in the country. "Process is underway to explore onshore gas across the country alongside the importing of LNG," he said this while addressing a seminar at Petro Center in the city`s Karwan Bazar. Energy and Mineral Resources Division organised the seminar marking the National Energy Security Day 2017 with its secretary Nazimuddin Chowdhury in the chair. Among others, chairman of energy regulatory council Monwar Islam, Petrobangla chairman Abul Mansur M Faizullah and BPC chairman Abu Hena Rahmatul Munim spoke. Manager of Rupantarita Natural Gas Company Limited Kazi M Anwarul Azim presented an article entitled "LNG as Primary Energy: Bangladesh Perspective" and Dr Moniruzzaman, deputy secretary of the Energy and Mineral Resources, presented a paper on `Oil Pipeline: to ensure uninterrupted oil supply for energy security` at the seminar. The adviser said the government has also emphasized on offshore exploration of gas. Referring to Father of the Nation Bangabandhu Sheikh Mujibur Rahman`s milestone task for the country after independence by acquiring five gas fields on August 9, 1975, Nazimuddin Chowdhury said Prime Minister Sheikh Hasina is also taking steps to ensure energy security in the country. Earlier, one minute silence was observed commemorating the martyrdom of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and most of his family members.
Category: Gas
Nasrul hopes for gas sector master plan timely
August 7, 2017 Monday 11:48 PM By BSS
State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Monday hoped that the gas sector master plan 2017 would be prepared timely incorporating rational opinions. "To ensure energy security in the country, the Awami League government led by Prime Minister Sheikh Hasina has started preparing the master plan in time," he said while addressing a function on "Presentation Draft Final Report on Gas Sector Master Plan 2017 as the chief guest. Among others, Chairman of Petrobangla Abu Mansur Md Faizullah, Ambassador of Denmark to Bangladesh Mikael Hemniti Winther, Director General of Power Cell Engineer Mohammad Hossain and Director, Departmental Studies of Ramboll Soren Lovstad Christensen spoke on the occasion. The state minister said since the world energy scenario is changing, Bangladesh needs to ensure energy security with its limited resources, adding, "We have prepared the power sector master plan with JICA finance." Referring to the global scenario in the energy sector, he said, "we have a plan to produce 50 percent power from coal-fired plants but the scenario is changing, as the world is going for clean energy. In this context, we don`t have enough land for big power plant or no area for deep sea terminal. So, we have introduced short term, mid-term and long term plans." According to the gas sector master plan details, World Bank is providing financial support to prepare the Gas Sector Master Plan 2017, being done by Denmark-based Ramboll consultancy firm. Earlier, the Power Cell signed a deal to prepare a new master plan for the gas sector focusing on demand-supply projections, assessment of oil and gas exploration possibilities and development of road map to enhance gas reserve earlier. The consultancy firm also presented the draft final report today on the master plan with mentioning several possibilities for supply, diversification in supply possibilities-entails better bargaining power. It said the transmission backbone requires minimum 42" pipeline from Moheskali to Dhaka and a 36" pipeline further on to Khulna in the West. Engineer Mohammad Hossain said the government wanted to bring the management of the gas sector under a new master plan, which is expected to constitute a medium-term plan for least-cost augmentation of supply and sustainable development of the country`s gas sector.
Category: Gas
BERC issues notice on gas price
August 1, 2017 Tuesday 11:15 AM By UNB
Complying with the High Court order, Bangladesh Energy Regulatory Commission (BERC) issued on Monday a public notice on its website on the reduced gas price for household consumers. The notice said the household consumers will pay monthly bill of Tk 750 for a single-burner oven and Tk 800 for a double-burner one while Tk 9.10 per cubic metre will be charged for metre-based consumers. But the increased bills which were paid by the household consumers in June and July will not be refunded, it said. The notice also mentioned that the other consumers like power, captive power, industries, tea garden, fertiliser, commercial and CNG consumers will have to pay gas bills as per the rates fixed by the BERC through its public notice issued on February 23, 2017. The High Court declared illegal on Sunday the gas price hike for household use in the 2nd phase that came into effect on June 01 last. The consumers had to pay Tk 900 and Tk 950 for single and double burners respectively from June 1 as per fresh hike in gas price.
Category: Gas
HC declares second phase gas price hike illegal
July 30, 2017 Sunday 9:34 PM By BSS
The High Court (HC) today declared illegal the second phase hike in gas price for household consumers, enforced from June 2017. A High Court division bench comprising Justice Zinat Ara and Justice Kazi Md. Ejarul Haque Akondo passed the order while disposing of a rule issued earlier in this regard. "The court has declared government`s decision of increasing the gas price in second phase. But the household gas consumers will not get back the extra price they have already paid. The court also pardoned government`s realizing of extra money from the consumers," said advocate Subrata Chowdhury, who moved the writ filed by Consumer Association of Bangladesh (CAB). The lawyer said the court order will come into force from August 1. Earlier on June 5, the Appellate Division of the Supreme Court stayed the High Court order that had stayed for six months the government decision of second phase hike in gas price. The apex court also ordered to dispose of the rule issued by the High Court in this regard, by July 31. On May 30, Chamber Judge of the Appellate Division Justice Syed Mahmud Hossain stayed the High Court order and sent the matter to the apex court full bench for further hearing. The High Court had passed the initial order on February 28, asking the concerned authorities to explain why the public notification of the Bangladesh Energy Regulatory Commission (BERC) for increasing the gas price should not be declared illegal.
Category: Gas
Govt to import 4,000 mmcfd gas in few years
July 30, 2017 Sunday 10:44 AM By BSS
The government is to import 4,000 Million Cubic Feet (mmcfd) gas per day for the national grid over the next few years keeping in view ensuring energy security in the country. This was disclosed by Prime Minister`s Power, Energy and Mineral Resources Affairs Advisor Dr Tawfiq-e-Elahi Chowdhury at a seminar on Saturday. "Initiative is underway to import 500 mmcfd in the early next year to improve supply of gas by 50 percent in 2018," he said. Dhaka Chamber of Commerce and Industry (DCCI) arranged the seminar titled, `Energy Security 2030: Challenges and Opportunities` with its president Abul Kasem Khan in the chair. Chairman of the Parliamentary Standing Committee on Ministry of Power, Energy and Mineral Resources M Tajul Islam was the special guest while Professor of the BUET Dr Mohammad Tamim presented the keynote paper. The advisor said, "It is necessary to identify the priorities including reliable transportation and distribution network, reduction of system loss to single digit by next year." He also said that consultation with private sector to understand the affordability of private sector in fixing the energy price blending with Liquefied Petroleum Gas (LPG) and other primary energy is necessary in this regard. Chowdhury underscored the use of the waste steam/heat to increase the energy efficiency (about maximum 80% from broiler) in industries focusing on investment in zone planning, adding, "$2.5 billion single largest investment contract was signed for installing 1,320 MW coal fired power plant at Matarbari." He said the government is also importing Liquefied Natural Gas (LNG) from Qatar for mitigating energy demand from next year. The DCCI president said Bangladesh would be the 30th largest economy with one trillion-dollar GDP having nearly $200 billion of export earnings and per capita income reaching close to $6000 in the next 17 years from now. "The low-cost production base will not be adequate to qualify Bangladesh as a competitive and attractive investment destination-efficient transportation, modern infrastructure with competitive and reliable energy will become the most crucial elements for Bangladesh to remain competitive in global inventor`s map," he said. Khan said the current-round of industrial momentum in the country has seen notable development in the power generation sector, increasing electricity generation capacity up to 15,300 MW, contributing to transform the economy. The demand for energy consumption is driven by growth of industrialization, modernization of agriculture sector, transformation of rural economy, rapid urbanization, and improved standard of living, he said. The DCCI chief referred to coal as a major source for energy in numerous countries including India, China, Indonesia and Vietnam, where 82 percent of the world`s new coal fired power plants were undertaken as per the report from Energy and Climate Intelligence Unit (ECIU), UK. By 2041, he said, Bangladesh needs to import 60 million tonnes of coal per year as the country needs to utilize optimum level of her large coal reserve for its energy source having enough reserves to meet energy and power needs for decades to come reducing dependence on imported coal. Professor Dr M Tamim highlighted some points including the government`s visions to scale-up economic growth over 7 percent for the next 10 years. "PSMP 2016 developed by JICA- considers SDG goal and the government`s vision stressing on five important areas such as robust infrastructure for primary energy import, domestic energy resource development and efficient use, high quality of robust power system development, advanced development of green energy and policy and human capital development," he said. He also referred to several studies, which have concluded that wind energy potential in Bangladesh is minimal to zero and the current technology in Bangladesh requires 350-400 acre land for a 100-MW solar plant. "Shed light on the energy mandate articulated in the SDG 2030 envisioning ensures access to affordable, reliable, sustainable and modern energy for all," Tamim added. Energy Law and Policy Expert and Chairman, BERC Tribunal Dr Salim Mahmud stated that the government`s focus should have been given on energy policy diversification encompassing Gas, Coal, renewable energy, regional energy trading -at least three decades before. He appreciated the government`s intervention for de-politicization of the energy price as the gas price does not reflect the opportunity cost, adding, "The gas price focus needs to be given on gas value chain encompassing upstream and downstream exploration." The Energy policy should have benchmark covering the criteria of contract like long-term contract, mid-term contract and short terms contract, he said. Engineer Rezwanul Kabeer, Managing Director of ECPV Chittagong, Dr Ahsan H Mansur, Executive Director of Policy Research Institute (PRI), Dr Mushfiqur Rahman, Technical Director of Institute Orgenergostroy, Rooppur Nuclear Power Plant shared their experiences at the seminar.
Category: Gas
Bapex to procure work-over rig to expedite drilling
July 28, 2017 Friday 10:12 PM By News Desk, energynewsbd.com
The state-owned Bangladesh Petroleum Exploration and Production Company Limited (Bapex) will procure a work-over rig from China to expedite its activities of onshore drilling oil and gas across the country. This would be the sixth rig for the Bapex. To gear up the activities of drilling oil and gas, Awami League government has so far purchased three drilling and work-over rigs. “We have already completed negotiations with the Chinese firm--SJ Petroleum Machinery Company -- for drilling a series of work-over wells within 2021 to explore more hydrocarbons with a view to reducing the shortfall of natural gas,” said a Bapex official. He said that they are hopeful to add the rig, having capacity to 600-650HP, to the fleet of Bapex exploration equipment by this year.    
Category: Gas
Deal with Qatar likely this month to import LNG
July 16, 2017 Sunday 10:33 AM By UNB
Bangladesh is reportedly set to strike a long-term deal with Qatar to import (LNG) to meet the rising domestic demand. According to official sources at Energy Division and Petrobangla, the negotiation was completed last week during the visit of a high-powered Qatari delegation to Dhaka which agreed on a sales and purchase agreement (SPA). "We hope, we can sign the deal with Qatar within this month," Md Quamruzzaman, managing director of Rupantarita Prakritik Gas Company Limited (RPGCL), told the news agencies. RPGCL, a subsidiary of the state-owned Petrobangla, has been entrusted with the responsibility to import and supply of LNG, LPG and CNG in the country. Qatar`s second largest LNG producer RasGas Company will supply LNG to Bangladesh. The RasGas manages and operates seven LNG trains, two sales gas production facilities, two helium plants as well as a long-term charter fleet of 27 LNG tankers. According to the sources, Bangladesh will sign a 15-year contract with Qatar to import LNG on a floating price liked with the oil price in international market. The core basis of the deal is that the LNG price will go up and down with the fluctuation of prices petroleum oil on the international market. "The price will be fixed under formula agreed by both sides during the negotiation," RPGCL chief noted. Officials said the imported LNG will cost about Tk 13 per cubic metre on average at the consumer level after meeting re-gasification and other charges and duties. Currently, the government is distributing gas to various consumers at different prices. Of this, the price for CNG station is the highest Tk 40 per cubic metre (cm), and lowest Tk 3.16 per cm, while household consumers are getting gas at Tk 11.20 per cm, commercial consumers at Tk 17.04 per cm and industry at Tk 7.76 per cm. Earlier, Bangladesh signed a memorandum of understanding (MoU) with Qatar about seven years ago to import LNG. But the business deal was not signed so far for lack of re-gasifacation facilities. After a long exercise of negotiation process over the last six years, the government finally awarded a contract to a private operator to set up an LNG terminal with floating storage re-gasification unit (FSRU) at Moheshkhali Island of Cox`s Bazar. Excelerate Energy, a US-based firm that won the project, is now developing the LNG terminal with FSRU and scheduled to start its commercial operation by April next year. As per the current plan, the RPGCL, as a state entity, will import LNG and re-gasify the imported liquid gas through Exelerate Energy`s FSRU. The US company will charge the RPGCL for providing the FSRU service. RPGCL managing director Quamruzzaman said the Excelerate Energy has been scheduled to set up its FSRU facilities and commence service by April next year. "Targeting this deadline, the government is moving ahead to sign the final contract with Qatar and import LNG," he said. State Minister for Power and Energy Nasrul Hamid recently asked the Excelerate Energy to expedite its project works as much as possible. As soon as the LNG import starts, the country will be able to generate 3000 MW additional extra electricity, while 5,000 industries will get energy support. Prime Minister`s Energy Adviser Dr Tawfiq-e-Elahi Chowdhury said the government has been working on diversifying gas import sources as it does not want to depend on a single source. There will be no problem in signing LNG import deal with Qatar although there is diplomatic crisis in the Middle-East between Saudi Arabia-led alliance and Qatar, he said. Currently, Bangladesh is producing about 2,900 mmcfd gas against its demand for 3,400 mmcfd keeping a shortfall of 500 mmcfd. The LNG terminal will have a 138,000 cubic metres capacity floating storage and re-gasification unit (FSRU). The terminal will supply 500 million cubic feet (mmcf) gas per day by regasification of imported LNG to the national gas network. Bangladesh will have to pay a total of $ 90 million as terminal charges excluding tax, VAT and insurance fee to the LNG terminal operator to use its facilities. In that case, Petrobangla will have to pay about $159,186 per day as fixed component of fees, $45,814 as operating component fees and $32,000 to the terminal operator. Calculating the total fees, Petrobangla officials said the terminal company will charge 0.49 US cents per unit of gas on average for regasification and processing the imported LNG. Beyond this cost, the government will have to spend about of $1.56 billion annually to import 182.5 billion cubic feet of LNG from abroad at an estimated cost of $8 per MMBTU gas. And that means Bangladesh will have to spend about $2.5 billion annually to supply 500 mmcfd imported gas, according to the officials. Energy experts believe per unit gas will cost over $9 against the present production cost of below $2 per unit (1000 cubic feet) once the LNG terminal starts operation with imported gas.
Category: Gas
Deal signed with Swiss firm to get LNG supply
June 14, 2017 Wednesday 11:44 AM By UNB
State-owned Petrobangla on Tuesday signed a memorandum of understanding (MoU) with Switzerland-based AOT Energy to receive supply of LNG (liquefied natural gas). As per the initial deal, both sides will start negotiation to settle the issues on quantity of LNG supply to Bangladesh. AOT officials said they have been pursuing the Bangladesh government to sign a medium-term contract to supply bulk quantity of LNG from their different supply channels to Bangladesh. They said Bangladesh`s energy requirement is on the rise following increased manufacturing base. "So in the coming days, Bangladesh will need huge LNG supply to feed its industries," said James O`Brien, head of the AOT. The government has so far signed a number of contracts with foreign companies to set up floating storage and regasification unit (FSRU) with LNG terminals and also signed a deal to have LNG supply from Qatar. After Qatar, this has been the 2nd such deal to get LNG supply from abroad, said Petrobangla officials. Addressing the MoU signing ceremony at Westin Hotel in the city, Energy Division Secretary Nazimuddin Chowdhury said the government has been making its best effort to resolve the gas crisis. Such MoU has been part of such efforts through which the country`s gas crisis will come to an end, he added. Petrobangla Chairman Abul Monsur Md Faizullah expressed the hope to make a good deal with AOT to ensure LNG supply to the country.
Category: Gas
Bangladesh signs MoU on Energy Cooperation with Russia
June 1, 2017 Thursday 8:28 PM By BSS
Bangladesh and Russia on Thursday inked a memorandum of understanding (MoU) on energy cooperation with officials saying the deal sought enhanced engagement of Russian oil and gas exploration giant Gazprom International in the energy sector. According to a statement of Bangladesh embassy in Moscow, the MoU sought Russian technological assistance in Bangladesh`s coal mining, energy researches, hydrocarbon exploration in offshore areas, supply of liquefied natural gas (LNG) to Bangladesh and training of manpower in petroleum sector. “It is expected that concluding of the signing of the MoU would enhance the engagement of Russian oil and gas exploration giant Gazprom in the energy sector of Bangladesh,” the statement read. Until now Gazprom has drilled in 15 gas wells of Bangladesh and successfully explored in 13 of those that adds approximately 180 mmcfd to the national gas distribution network. Russian First Deputy Minister Alexey Texler signed the MoU on behalf of their energy ministry with Bangladesh`s Energy Secretary Nazimuddin Chowdhury at St. Petersburg on the sidelines of St Petersburg International Economic Forum (SPIEF). Commerce Minister Tofail Ahmed, who is attending the seminars of St Petersburg International Economic Forum, and Bangladesh Ambassador to the Russian Federation Dr Saiful Hoque were present among others during the signing ceremony.
Category: Gas
Gas price hike from June 1 as SC stays HC order
May 30, 2017 Tuesday 8:55 PM By UNB
The Supreme Court on Tuesday stayed the High Court order that stayed for six months a government decision for raising gas prices for all consumers in the second phase with effect from June 1. Chamber Judge of the Appellate Division Justice Syed Mahmud Hossain passed the order after hearing a petition filed by the Bangladesh Energy Regulatory Commission (BERC). The court also sent the petition to the regular bench of the apex court for hearing on June 5. The concerned lawyers told reporters that the decision of raising gas prices will be effective from June 1 following today’s (Tuesday’s) order. Talking to reporters, Attorney General Mahbubey Alam said there is no legal bar to raise gas price from June 1. Earlier, on February 28, the High Court stayed for six months the government decision for raising gas prices following a petition filed by engineer Mobeshwar Hossain on behalf of Consumers Association of Bangladesh (CAB). The court also issued a rule asking the authorities concerned to explain why the government’s move to raise gas prices will not be declared illegal. Later, the BERC filed a petition seeking a stay on the HC order. On February 23, gas prices were raised for all types of consumers in two phases as per the BERC decision. Household consumers have been paying Tk 750 for single burner while Tk 800 for double burner a month for the first phase gas price hike which took effect on March 1. Earlier, gas price was Tk 600 for single burner and Tk 650 for double burner. The same consumers will have to pay Tk 900 and Tk 950 for single and double burners respectively from June 1.
Category: Gas
Chevron to sell Bangladesh gas fields to Chinese consortium
April 25, 2017 Tuesday 1:27 AM By Reuters
Chevron Corp is selling its three Bangladesh gas fields, worth an estimated $2 billion, to a Chinese consortium as the U.S. oil and gas group looks to shed non-core assets this year. The deal, if completed, would mark China`s first major energy investment in the South Asian country, where Beijing is pumping in billions of dollars in a race with New Delhi and Tokyo for influence. The gas fields, which account for more than half of the total gas output in Bangladesh, are being sold to Himalaya Energy, Chevron said. Himalaya is owned by a consortium comprising state-owned China ZhenHua Oil and investment firm CNIC Corp. CNIC, set up in Hong Kong in 2012, is a government investment platform that focuses on supporting Chinese companies` overseas investment. Reuters reported in February that ZhenHua Oil had signed a preliminary deal with Chevron to buy the Bangladesh natural gas fields. “The agreement is for the sale of Chevron`s Bangladesh companies, which hold our interests in Bangladesh,” a company spokesman told Reuters by email on Monday. “The value of the transaction is not being disclosed and we are not at liberty to share the details of the agreement.” A ZhenHua spokesperson confirmed the agreement, adding that the closing of the deal would depend on approval from China’s Ministry of Commerce. Chevron sells its entire output from the Bangladesh fields -- 16 million tonnes a year of oil equivalent -- to state oil company Petrobangla under a production-sharing contract. The Bangladesh government has the right of first refusal in any asset sale. Bangladesh`s junior minister for power and energy, Nasrul Hamid, said that energy consultant Wood Mackenzie is still evaluating whether it would be profitable for the country to make a bid. “We can`t take any decision hastily until we get the consultancy report,” Hamid told Reuters. “We believe that Chevron would honor our request.” The Chevron spokesman said that the Bangladesh government is “critical to the ongoing success of the business, including the transition to the new owner,” and that it would maintain continuous communication with Dhaka as the process progresses.  The gas fields -- Bibiyana, Jalalabad and Moulavi Bazar -- had average net daily output of 720 million cubic feet of gas and 3,000 barrels of condensate, or liquid hydrocarbon produced with gas. Chevron said in October 2015 that it planned to sell assets worth about $10 billion by 2017, including the Bangladesh gas fields and geothermal projects in Indonesia and the Philippines, amid a prolonged slump in energy prices.
Category: Gas
Petrobangla, Summit Group sign deal for 2nd LNG terminal
April 21, 2017 Friday 9:39 PM By News Desk, energynewsbd.com
A company of Summit Group will build a floating storage and re-gasification unit (FSRU)–popularly known as LNG terminal–to process imported LNG into natural gas on a build-own-operate-transfer basis in Cox’s Bazar. Summit will become the first Bangladeshi company to build FSRU in the country. Summit LNG Terminal Company signed two agreements with Petrobangla and Energy and Mineral Resources Division (EMRD) for terminal use agreement (TUA) and implementation agreement (IA) respectively for the FSRU with delivery at Gas Transmission Company Limited (GTCL) at Moheshkhali in Cox’s Bazar. The signing ceremony was hold at Petrocenter in Dhaka on Thursday, according to a press release issued by the Summit Group. Managing Director of Summit LNG Terminal Company Md ANM Tariqur Rashid, Director of GE Global Gas to Power Infrastructure Peter Mackey, Deputy Secretary of the Energy and Mineral Resources Division Zanendra Nath Sarker and Secretary of Petrobangla Syed Ashfaquzzaman signed two deals on behalf of their respective sides. According to the deal, Summit will install Bangladesh’s second FSRU with 9 km subsea pipeline at Moheshkhali Island in the Bay of Bengal. The floating storage re-gasification unit will have LNG storage capacity of 137,000 cubic meter and maximum re-gasified liquefied natural gas (RLNG) pumping capacity of 500 mmcfd at 75-80 barg. It will be built jointly with 20% equity stake of US-based GE (and Summit 80%) within 18 months after signing of contract. It will have capacity of supplying 500 million cubic feet of natural gas per day for consumption of Bangladesh. The Petrobangla will pay 0.45 cents per million BTU (mmbtu)–a measure of the energy content in fuel – for the FSRU. Summit is offering competitive rate to Petrobangla in comparison to foreign competition on fixed component fee and port service charge, saving Bangladesh US$ 2,500 per day for the project duration. After 15 years without any cost to Petrobangla, Summit will fully transfer the entire project facilities to government. On completion of the project, the gas supplied by the FSRU can potentially supply to existing oil-run power plants like Meghnaghat and possibly reduce power generation cost by less than half. Prospecting, Summit has also requested permission from government to develop gas-fired power plant of at least 750 MW capacity near this FSRU.    
Category: Gas
RPGCL to build land-based LNG terminal at Moheshkhali
April 14, 2017 Friday 6:58 PM By Staff Correspondent, energynewsbd.com
A land-based liquefied natural gas (LNG) terminal will be built at Moheshkhali in Cox’s Bazar or Payra in Patuakhali under the initiative of state-owned Rupantarita Prakritik Gas Company Limited (RPGCL). The aim of the terminal is to import LNG to face any sudden energy crisis because of supply shortfall in the near future. An expression of interest (EoI) for construction of LNG re-gasification terminal on build-own-operate-transfer (BOOT) has been invited from prospective bidders, Engineer Md Quamruzzaman Manging Director of RPGCL told the energynewsbd.com. On receipt of EoIs, interested companies deemed best suited to perform the operation will be short-listed, he said, adding that later request for proposal (RFP) will be sent to them. May 22 this year is the last submission date of EoI. The terminal developer and government of Bangladesh or its nominated company will invest here.
Category: Gas
Petrobangla mulls to multiply Sangu’s platform commercial use
March 30, 2017 Thursday 9:32 PM By Staff Correspondent, energynewsbd.com
Petrobangla, a state-owned national oil company of Bangladesh, is mulling to multiply commercial use of the Sangu offshore platform in the Bay of Bengal for importing LPG or CNG with a view to meeting the increasing energy demand of the country. Md Mahbub Sarwar, Director (PSC) of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), told the energynewsbd.com that they had already invited Expression of Interest (EoI) to pick up local or international company in multiple commercial use of Sangu offshore facilities in a rental basis. He also informed that the last submission date of EoI is May 3, 2017. Seeking anonymity, an official of Petrobangla said the platform is unused till now after shutting down the Sangu gas field. Tk 2 crore is expending per year for its maintenance. So, the EoI has been called to overcome this unnecessary expenditure, he said. “When a gas field is shut down in other countries, it is decommissioned, but we do not do it as we do not have the system.” The platform has been unused for shut down of Sangu gas field run by Australian oil and gas exploration company Santos since three years. Mahbub also said upon receipt of EoIs, the interceded companies, which will be seemed best suited to perform the operation, will be short-listed. Later, the short-listed companies will get request for proposal (RFP). The EoI said that interested local or international company must provide proof or certificate of operator ship from host country, state host company or relevant regulator. Moreover, interested company must submit its annual reports for at least last five years or a financial report certificated by a chartered accountant firm. Apart from these, it must submit a certificate from company`s statutory auditors stating the company`s net worth. In case the parent company provides the financial and performance guarantee, the certificate from parent company`s auditor should be provided, the EoI added. Fouzdarhat in Chittagong is the location of onshore gas process plant. A 49 kilo-meter long 20-inch diameter seabed pipeline is in between offshore platform and onshore gas process plant. Sangu, the first offshore gas field in the country, was shut down permanently on October 1, 2013 as its reserves was running out fast.
Category: Gas
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China-led AIIB approves $60 mln to finance Bangladesh gas project
Pre-paid metres for household gas consumers by May
Govt inks deal with Daewoo for deep sea block-12 exploration
‘Signing of deep sea exploration deal with Korean company POSCO DAEWOO March 14’
Marubeni keen to set up LNG terminal in Bangladesh
Gas price goes up again; to be effective in two phases
BERC to declare new gas price today
Bangladesh Shipping Corporation to get 2 LNG vessels
BGFCL holds 61st annual general meeting
Cabinet approves PSC for block-12 at deep sea
Drilling starts at Magnama structure
LNG will be imported from Qatar`s RasGas
Cabinet committee okays Summit LNG terminal
Bapex, Santos signs agreement for Magnama structure
Gas supply at several parts of Dhaka to be hampered Wednesday
SPA with Santos for Magnama gets Cabinet body approval
Titas Gas Company launches helpline to receive consumers` complaints
Titas Gas snaps 66,904 unauthorised lines in December
Summit Group initials contract with Petrobangla to implement a new LNG terminal
Request for proposal to six short listed companies for the model PSC
Govt-ADB ink $167 million loan deal for gas sector
Petrobangla signs MoU with Petronet LNG Limited of India
Bapex holds annual general meeting
Gas supply to remain suspended for eight hours at Dhaka’s Agargaon, Mirpur
Three IOCs backtracks from three deep sea blocks
Titas Gas Company makes profit of over Tk 970 crore in 2015-16 fiscal
Govt-ADB to ink $167m loan deal for gas sector

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