Bangladesh signed two agreements on Monday with a unit of Texas-based LNG player Excelerate Energy to build the country’s first LNG terminal at Moheshkali Island in the Bay of Bengal.
The contracts have been signed between the ministry of power, energy and mineral resources, Petrobangla and Excelerate Energy Bangladesh regarding the implementation and the use of the LNG terminal.
IFC, a member of World Bank will provide and arrange the required financing for the terminal.
Excelerate Energy will deliver Bangladesh’s first floating storage and regasification unit (FSRU) on a build-own-operate-transfer basis, Petrobangla said in a statement.
The new terminal will enable Petrobangla to procure LNG from international gas markets which will further “complement and enhance Bangladesh’s ability to reliably use the country’s domestic natural gas reserves,” Excelerate Energy said in a separate statement on July 25.
Excelerate will operate the terminal for 15 years, after which the company will transfer ownership to Petrobangla.
The FSRU will have a storage capacity of 138,000 cubic meters and a base regasification capacity of 500 million standard cubic feet per day.
The terminal will include the provision of one of Excelerate’s existing FSRUs, the installation of a subsea buoy system anchored offshore, and the employment of port service vessels during operation. The FSRU will have 138,000 cubic meters of LNG storage capacity and a base regasification capacity of 500 million standard cubic feet per day.
The terminal is expected to be in operation in 2018.
(This article has been amended on July 25 to include a statement by Excelerate Energy)