Petrobangla Signs $950mln Deal with Petronet for LNG Terminal
Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) signed an initial agreement with India's energy company Petronet LNG Limited to set up an LNG re-gasification terminal on Kutubdia Island and a pipeline at an estimated cost of $950 million.
Prabhat Singh, managing director and chief executive officer, Petonet and Syed Ashfaquzzaman, secretary, Petrobangla, sign an agreement at Petrobangla Bhaban in Dakka.
The agreement aims to set up liquefied natural gas infrastructure, which includes a land-based LNG terminal and a pipeline to carry the re-gasified LNG.
The capacity of the terminal is expected to be 7.5 MMTPA (1,000 MMSCFD) at an expected project cost of $950 million.
The project includes setting up a land based LNG re-gasification terminal at Kutubdia Island along with gas pipeline to carry the re-gasified LNG.
“The implementation of the project will be the starting of a new era and bring long lasting benefit for the people of Bangladesh,” says a statement.
Kutubdia Island has a natural harbour with good draft and a natural breakwater, idle for setting up LNG terminal.
The project will be completed in four years with provision for future expansion and can also be used to supply LNG through small barges and LNG trucks to users which are not connected by gas grid.
