The government has shortlisted two firms for setting up two small Liquefied Natural Gas (LNG) terminals using the jetties of Karnaphuli Fertiliser Company Limited (KAFCO) and Chittagong Urea Fertiliser Company Limited (CUFL).
The government is planning to import LNG in a smaller scale within a short period of time to supply gas to the industrial units in the port city, which has been facing a shortage of gas supply.
The proposed LNG terminals will also help meet the natural gas demand for country’s two major fertiliser factories through facilitating the import of LNG.
The shortlisted companies are Singapore-based Trafigura Pte Ltd, and a joint-venture between Cranbore of Belgium and Exmar Marine of Singapore. The authorities have already discussed the terms and conditions of the deal with the shortlisted firms.
State Minister for Power and Energy Nasrul Hamid told the Daily Sun that they will pick one of the two shortlisted firms by next week for building the LNG terminals.
A total of 10 international firms have shown interest in setting up the LNG terminals.
Rough estimates suggest that the country will require 8000mmcfd of natural gas for meeting the domestic demand by 2041.Of the total requirement, around 5700 mmcfd of gas will be used in electricity generation by in 20141.
The shortfall in the country’s gas supply stood at 600mmcfd against the supply of 2700mmcfd in 2016.
The Energy and Mineral Resources Division wants to install the small LNG terminals as low draft marine jetties are suitable for establishing such facility.
A summary proposal was sent for the prime minister’s approval for installing the LNG terminals in the jetties of KAFCO and CUFL.
The government has so far allowed 1000mmcfd LNG terminals in public sector in Moheskhali and Patuakhali.
Local Summit Group has secured a contract from Petrobangla to build a floating liquefied natural gas terminal at offshore Moheshkhali Island.
The government will also build another three LNG terminals in Kutubdia, Sonadia and Sangu platforms.
The requirement of gas for country’s seven fertilizer factories is around 316mmcfd while they are receiving only 63mmcfd at present.
“We will be able to supply LNG to KAFCO and CUFL within six months subject to the availability of logistic support,” an EMRD official said.
It takes at least three years to build a large LNG terminal having the capacity to store 500 mmcfd of natural gas while the smaller ones with the capacity of 150-250 mmcfd take a year or less.