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.