Moheshkhali LNG terminal gets green signal


The government today approved a proposal to sign agreement with contractor, Singapore-based Excelerate Energy, to develop the terminal at Moheshkhali in Chittagong.

Petrobangla is now set to sign anytime the deal with Excelerate Energy Bangladesh Limited (EEBL), a subsidiary of the Singaporean Excelerate Energy, for setting up a 138,000 cubic metres capacity floating storage and re-gasification unit (FSRU).

The Cabinet Committee on Public Purchase at its meeting approved signing of the contract.

After the meeting, Additional Secretary Mostafizur Rahman said Petrobangla will have to pay $90 million annually to take 500 cubic feet of gas per day. The amount would be higher as taxes, value added tax, insurance and other charges will be added.

Officials said Bangladesh will actually enter the final stage of implementation of its long-cherished LNG terminal project after signing the deals.

The agreements would make it mandatory for the EEBL to set up the LNG terminal at its own cost within the next 18 months on a build-own-operate and transfer (BOOT) basis with the completion of necessary surveys in the Bay of Bengal in Bangladesh maritime boundary.

According to an official document, once the FSRU started operation, Bangladesh will have to pay a total of $ 90 million as terminal charges excluding tax, VAT and insurance fee to the operator to use its facilities to supply the imported gas to the national gas network.

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