Another deal signed with Swiss firm for LNG import
Dhaka: Petrobangla on Tuesday signed another non-binding memorandum of understanding (MoU) with Geneva-based Gunvor Group to procure liquefied natural gas (LNG).
Petrobangla Secretary Syed Ashfaquzzaman and Speeleveled, Head of LNG-BD/Asia of Gunvor Singapore PTE Ltd, signed the MoU on behalf of their respective sides.
With this, the state-owned hydrocarbon and mineral resource corporation has so far signed five deals with the LNG supplying firms.
"Now, both sides will start negotiation to set the detailed terms and conditions of the LNG supply deal," Petrobangla Chairman Abul Mansur M Faizullah said after the deal signing ceremony with the Swiss firm.
The deal is a part of the government's aggressive move to enhance the gas supply for the energy-hungry industries, currently facing about 500 mmcfd shortfall.
The country can hardly supply 2,700 mmcfd gas against a demand of 3,200 mmcfd and the demand-supply gas is forecast to widen in the days to come if local gas supply is not enhanced.
Against this backdrop, the government has moved to import the LNG and set a target to raise the import volume to 4000 mmcfd in the next few years.
About the plan, State Minister for Power and Energy Nasrul Hamid, who was present at the contract signing ceremony as the chief guest, said the government wants to take the advantage of globally competitive price of LNG.
He said the government has moved to set up some LNG-based power plants alongside the import of LNG for industries and power plants. "We want to ensure the gas supply for the country's growing industries," he told the signing ceremony.
The government has already signed a number of deals for setting up floating storage and re-gasification units (FSRU) to process the imported LNG and supply it to the national gas supply network.
The first of such FSRUs is scheduled to start operation in April next and the first shipment of LNG will come from Qatar under a deal signed recently.
The state minister said during his recent Indonesia visit, he had signed a deal with the South-East Asian nation to import LNG.
Energy Secretary Nazimuddin Chowdhury was also present at the function at Petro Centre, the headquarters of Petrobangla.