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New gas reserve found in Bhola
State-owned Bangladesh Petroleum Exploration Company (Bapex) has discovered a new reserve of a significant amount of natural gas in Bhola, a district of the country`s southern region. The new gas reserve, which is found in Bheduria union of Bhola district, is estimated to have 600 billion cubic feet (bcf) natural gas. "With this reservoir, the total gas reserve in Bhola now stands at 1.5 trillion cubic feet (tcf)", Cabinet Secretary Shafiul Alam told a press briefing following the weekly meeting of the cabinet held at Prime Minister`s Office (PMO) with Prime Minister Sheikh Hasina in the chair on Monday. The Cabinet Secretary said Bapex hoped getting more gas in the district, with carrying out more exploration work there. According to Petrobangla, the country has 26 gas fields with remaining reserve of 13.60 tcf as of January 2016. The new gas field in Bhola will be the country`s 27th gas reserve.
Summit Power International awards 15-year contract to PSA Marine for an LNG Terminal
January 5, 2018 Friday 6:40 PM By News Desk, energynewsbd.com
Summit Power International Pte. Ltd, Singapore, on Friday announced that its subsidiary, Summit LNG Terminal Co. (Pvt) Limited has awarded a 15-year contract to PSA Marine Bangladesh Pte. Ltd, a subsidiary of PSA Marine (Pte) Ltd. Under the contract, PSA Marine Bangladesh will provide berthing, mooring, pilot and personnel transfer services to LNG ships calling at Summit LNG FSRU terminal, with its three escort tugboats, one fast crew boat and one offshore supply vessel, said a press release. The award of this contract marks a significant milestone for PSA Marine and commencement of a long-term partnership with SPI. Together with Summit LNG, PSA Marine Bangladesh targets to commence operations in early 2019. Peter Chew, Managing Director of PSA Marine said, “We have an excellent track record of providing towage services to LNG terminals, be it at the Singapore LNG terminal in Jurong Island or the Oman LNG terminal at Sur. We are honored to work alongside Summit Power International and this win is a vote of confidence for our standing and capability as the preferred marine services partner for LNG terminals.” Muhammed Aziz Khan, Chairman of SPI said, “Summit is the largest physical infrastructure company in Bangladesh generating 1,500 MW of electricity, 1,000 MW under construction and 2,400 MW under development. Bangladesh requires 15 million tons of LNG and Summit will provide infrastructure for that. For our first project of LNG, we are pleased to bring on board PSA Marine, a pre-eminent marine services provider, to support our venture to develop region’s fast growing LNG market. Summit Power has an excellent track record in working with world leading corporations to deliver the high standard projects and PSA Marine’s best-in-class services are a natural fit with our operational philosophy.” In 2017, Summit LNG has received a concession from Petrobangla, Bangladesh’s state-owned company, to develop a floating LNG terminal facility comprising of a storage and regasification unit connected to shore by a six-kilometre subsea pipeline, on a build, own, operate, transfer basis in Moheskhali, Cox’s Bazar to supply approximately 500 million cubic feet per day of natural gas to the national grid. This project is part of SPI’s US$ 1 billion investment programme to deliver 1,000 MW of power and gas in Bangladesh.
Category: Gas
No gas in Dhamrai, Manikganj for 10 hrs on Monday
December 18, 2017 Monday 11:13 AM By UNB
Gas supply across a vast area of Dhamrai of Dhaka and Manikganj will remain off for 10 hours on Monday due to tie-in installation between existing gas pipelines and newly installed pipelines crossing Kaliganga river. According to a press release of the Titas Gas Transmission and Distribution Company Ltd, which is responsible for gas supply in greater Dhaka, the gas supply will be suspended from Bathuli of Dhamrai to Tepra DRS area of Manikganj, district town, Shibalaya, Aricha and adjacent areas of the district from 10:00 am to 8:00 pm. The supply will disrupt all kinds of consumers including household, commercial, industrial and CNG refueling stations in these areas.
Category: Gas
Summit signs $100m deal with consortium for LNG terminal
November 26, 2017 Sunday 10:59 AM By News Desk, energynewsbd.com
Summit LNG Terminal Ltd, a subsidiary of Summit Power International, signed a $100 million turnkey contract with a marine work contractor consortium recently. Under the contract signed, the consortium comprising of Geocean SAS and MacGregor will undertake a project for laying design, engineering, procurement, fabrication, installation and testing of the Fixed Infrastructure (FI) for its proposed Floating LNG Storage and Regasification Terminal (FSRT) at Moheskhali, Cox`s Bazar, said a press release. The project is to be completed in 16th month from day of signing the contract, according to a statement of the company issued on Tuesday. However, the statement did not say where and when the contract was signed. The FI will consist, among others, of Disconnectable Turret Mooring (DTM) plug for FSRU (floating storage and regasification unit) vessel system with anchors (suction piles), flexible riser with floatation and tether system, control and hydraulic umbilical, PLEM, Stern Mooring System (SMS) of FSRU vessel offshore pipelines and landfall works. In August 2017, Summit had signed Time Charter Party (TCP) agreement with Excelerate Energy for securing FSRU vessel. Summit Power International is a Singapore incorporated leading infrastructure developer and operator in South Asia. It comprises a group of businesses which develop, own and operate power generating assets and FSRU. Geocean, subsidiary of Entrepose Group, performs turnkey offshore projects under EPCI-type contracts in the oil and gas, mining, chemical industries as well as on the public works market. It builds coastal structural works for power stations, desalination plants, water treatment plants and offshore fields. MacGregor shapes the offshore and marine industries by offering world-leading engineering solutions and services with a strong portfolio of MacGregor, Hatlapa, Porsgrunn, Pusnes and Triplex brands.
Category: Power
Chevron not winding up business in Bangladesh
October 26, 2017 Thursday 9:54 PM By News Desk, energynewsbd.com
State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Thursday said US oil major Chevron is not leaving Bangladesh; rather, it will invest $400 million in the country’s gas sector. While addressing a contract signing ceremony for procuring 200 megawatt (MW) solar electricity at the Bidyut Bhaban in Dhaka, he said Chevron has officially communicated its decision to the government to this end, according to a report of UNB. He said the Chevron`s planned $400 million will be invested in setting up a wellhead gas compressor at Bibiyana gas field to increase the gas pressure to the supply line. Chevron`s three gas fields -- Bibiyana, Jalabad and Moulvibazar -- share 52 percent of the total 2700 mmcf gas now being produced by the country`s 22 gas fields. In September last year, the Chevron Corporation announced its plan to sell out its assets of the three gas fields in Bangladesh. Following the announcement, Bangladesh expressed its desire to buy the assets. But on April 24, 2017, Chevron further announced that it entered into an agreement to sell the shares of its wholly-owned indirect subsidiaries operating in Bangladesh to a Chinese consortium named Himalaya Energy Co Ltd. Following the announcement, Bangladesh got very frustrated and continued its efforts to block the Chevron-Himalayan deal. The state minister said the new decision of Chevron for investing money in the gas field will boost the confidence of other foreign companies to continue their businesses in Bangladesh. He said many foreign companies are now showing their immense interest to invest in Bangladesh as its demand for energy is growing fast for the growing economy.
Category: Gas
Bapex discovers 700bn cubic feet of new gas reserve in Bhola
October 24, 2017 Tuesday 12:43 AM By News Desk, energynewsbd.com
Amid the growing energy crisis, Bapex has discovered a new gas reserve of around 700 billion cubic feet near Shahbazpur in Bhola, raising the overall gas reserve of the area to around one trillion cubic feet. "There’s good news for the country as Bapex has found initially estimated some 700 billion cubic feet of gas reserve in Bhola. If the new gas reserve is added to the previous ones, the total gas reserve of that area will reach around one trillion cubic feet," said Cabinet Secretary Mohammad Shafiul Alam. The Cabinet Secretary said this while briefing reporters at Bangladesh Secretariat on Monday after the Cabinet meeting held at the Prime Minister`s Office with Prime Minister Sheikh Hasina in the chair, according to a report of UNB. He said the news on the new gas reserve was revealed at the cabinet meeting.
Category: Gas
Petrobangla inks MoU with Gunvor for LNG supply
September 19, 2017 Tuesday 10:23 PM By News Desk, energynewsbd.com
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.
Category: Gas
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
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