Monday, 15th July, 2024
Monday, 15th July, 2024

Japan firm to study feasibility of Matarbari LNG terminal

Japanese firm Tokyo Gas Co Ltd has finally been awarded the job of carrying out a feasibility study, preparing documents and helping select a final bidder to build the country’s maiden land-based LNG terminal.

Tokyo Gas has inked a final deal with state-run Petrobangla recently, around 18 months after receiving bids from the interested parties to build the 7.5 million tonnes per year capacity land-based LNG terminal at Matarbari in Cox’s Bazar.

Under the deal, the Japanese firm will carry out a feasibility study and prepare a request for proposal (RfP) documents for selecting the final bidder to build the land-based LNG terminal.

It will also help the government evaluate the bid to select the appropriate bidder.

Petrobangla signed the final agreement after inking an initial deal several months back, which got approval from the Ministry of Law, a senior Petrobangla official told the FE.

Officials said the government is working to build a 7.5 million tonne per year, or MTPA, capacity land-based LNG terminal doubling the country’s overall LNG re-gasification capacity to 15 MTPA.

Currently, two 3.75 million tonne per year capacity LNG import terminals having floating, storage, re-gasification units (FSRUs) are in operation at Moheshkhali. The two terminals are re-gasifying around 550 million cubic feet per day (mmcfd), almost half their total capacity to re-gasify 1,000 mmcfd.

Twelve global firms and their joint ventures are now vying to bag the contract to build the country’s first land-based LNG terminal, having the capacity to handle 7.5 million tonnes per year (Mtpa) of LNG at Matarbari.

Of the firms, four are from Japan, two from Bangladesh, and one each from the Netherlands, France, Qatar, Hong Kong, Korea and India.

The Japanese firms which submitted the EOIs are: Mitsui & Co Ltd, Japan Investment Corporation for Matarbari Regas Terminal, a joint venture of Inpex Corporation, Sojitj Corporation, Kyushu Electric Power Co and local Unique Hotel and Resorts Ltd, joint venture of Marubeni Corporation and Osaka Gas Co Ltd, and joint venture of Sumitomo Corporation and Chungko Electric Power Co. Inc.

Joint venture of local Summit Corporation Ltd, Mitsubishi Corporation, and Jera Co Inc and joint venture of United Enterprises & Co Ltd, Posco International Corp and Korea Gas Corporation are the Bangladeshi firms eyeing to bag the project.

Shell Gas and Power Development of the Netherlands, joint venture of Total Gas Electric Holdings and Total Gas and Power Business Service of France, joint venture of Qatar Petroleum LNG Services and Exxon Mobil of Qatar, Samsung C&T Corporation of Korea, joint venture of Poly-GCL Petroleum Group Holding Ltd and H Sterling Group PTE Ltd of Hong Kong also submitted EOIs.

The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) is scrutinising the EOIs, or expression of interests, submitted by the firms to short-list them.

The short-listed firms would be requested to submit request for proposals (RfPs) to implement the project.

The proposed land-based terminal is planned to be built by the selected sponsor on build, own, operate and transfer (BOOT) basis at Matarbari in Cox’s Bazar district near the Bay of Bengal.

The project company would own, operate and maintain it for 20 years.

Bangladesh started regular imports of LNG from Qatar’s then RasGas, which has been renamed Qatargas from September 9, 2018.

Apart from Qatargas, Oman Trading International is also supplying LNG in the country under long term deals.

Bangladesh has two operational FSRUs, or floating, storage, and re-gasification units to re-gasify imported LNG.

Each of the two operational FSRUs in Bangladesh has the capacity to re-gasify around 500 million cubic feet per day, or mmcfd, of LNG.

Excelerate Energy started supplying re-gasified LNG from its FSRU commercially since August 2018, while Summit started supplies in April 2019.

:: Share ::