The first LNG terminal under the initiative of private sector is likely to start commercially by March this year.
The terminal is being constructed at Moheshkhali in Cox’s Bazar by the Summit LNG Terminal Company (Private) Limited, a concern of the Summit Group.
Even though the terminal has the capacity to supply 500 million cubic feet of gas per day, it will be able to supply 250 million cubic feet because of the lack of installed pipeline, said a Petrobangla official.
The new terminal of Summit is going to be launched six month after the first LNG terminal started supplying LNG to the national grid.
ANM Tariqur Rashid, Managing Director of the Summit LNG Terminal Company Private Limited told energynewsbd.com that working on offshore location is always very risky and it is hard to envisage anything before the completion of the work.
“We however hope to start our commercial activity in the terminal by March,” said Rashid.
Summit Group signed two separate contracts with Energy and Mineral Resources Division and Petrobangla in April 20, 2017. As per the contracts, the Summit LNG Terminal Company Private Limited will construct the terminal along with a nine kilometer long pipeline under the sea. After operating the terminal for 15 years, Summit will hand over the terminal to Petrobangla.
Under the LNG terminal project, Summit will supply gas to Gas Transmission Company Limited after converting the LNG into gas in the floating storage re-gasification unit (FSRU).
Petrobangla will have to pay 45 cent (Tk 37) per million BTU to Summit. GTCL meanwhile will supply the gas to the national grid.
The annual target of re-gasification in the terminal is 3.5 million ton. The initial estimated cost of the project is 500 million US dollar. Japan based Mitsubishi Corporation has already purchased 25 percent of the under construction terminal.
The construction of the terminal started in the end of 2017. Earlier, for the construction of the terminal, Summit signed a 100 million US dollar turnkey contract with the marine contractor consortium Geocean SAS and MacGregor.
Under the contract, the two organisations are working on the design, engineering, procurement, fabrication, installation and testing of the LNG storage and re-gasification terminal in Moheshkhali of Cox’s Bazaar.