Excelerate, Petrobangla, and the Government of Bangladesh have executed the Terminal Use Agreement (“TUA”) and the Implementation Agreement (“IA”) for the construction and operation of Bangladesh’s first LNG import terminal Moheshkhali Floating LNG.
Located offshore near Moheshkhali Island in the Bay of Bengal, the terminal will provide the crucial infrastructure required for the country to access natural gas from global markets. The signing of the agreements signals the commencement of the project and the approval to move forward to implementation. The terminal is expected to be in operation in 2018.
The project is a result of the collaboration between Excelerate, Petrobangla, and IFC, a member of World Bank. Among the executives and government officials present for the event were Excelerate Chief Development Officer Mr. Daniel Bustos, Petrobangla Chairman Mr. Istiaque Ahmad, and the Honorable Advisor to the Honorable Prime Minister of Bangladesh Dr. Tawiq-E-Elahi Chowdhury, Bir Bikrom. Also in attendance were representatives of IFC, who is delegated to provide and arrange the required financing for the terminal.
“This innovative project would not be possible without the critical support and collaboration of Petrobangla and the Government of Bangladesh,” stated Mr. Bustos. “The signing of these agreements not only authorizes Excelerate to begin developing this vital project, but it also demonstrates the trust bestowed upon us by Petrobangla and the nation. We are confident our experience and expertise in delivering floating regasification solutions in a cost-effective and timely manner ensure we will provide an efficient and reliable project for Bangladesh.”
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. Expanding access to diverse and abundant sources of natural gas supply will promote power reliability, industrial development, and job creation in the region.
Moheshkhali Floating LNG will be the world’s first fully integrated turnkey floating LNG terminal whereby all services will be provided under a single contract by a single provider – Excelerate Energy. Excelerate will fully develop, design, construct, install, finance, and operate the terminal. This structure will allow for a single point of interface and responsibility to Petrobangla and provide seamless operations for the Bangladeshi market. Excelerate will operate the terminal for 15 years, after which the company will transfer ownership to Petrobangla.
The terminal will include the provision of one of Excelerate’s existing floating storage and regasification units (FSRU), 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.
Source & Image credit: Excelerate