Japanese, American companies interested to install LNG terminal in Cox’s Bazar

Two international companies have submitted their Expression of Interest for conducting a feasibility study to install a land-based liquefied natural gas (LNG) terminal in Matarbari, Cox's Bazar.

One of them is a joint venture of Japanese Nippon Koei and Tokyo Gas, and the second one is American energy advisory company Galway Group LLC, sources with knowledge of the matter informed The Business Standard.

The energy division is now evaluating the proposal to select one of the companies for conducting the feasibility study.

"Thursday was the date for opening the tender. Now, we are evaluating the proposals," said a Petrobangla official. 

Petrobangla, in charge of LNG imports into the country, plans to build a land-based terminal that can handle 7.5 million tonnes of liquefied natural gas annually in Matarbari, Moheskhali.

The project is expected to start in 2021. 

"The selected company will work to determine whether the site is suitable for the project. It will also be responsible for conducting an Environment Impact Assessment (EIA) and a geological survey," the sources said. 

At present, Petrobangla has two floating storages at Moheshkhali, facility for re-gasifying imported liquefied natural gas, with a one billion cubic feet regasification capacity. 

It has been importing LNG from Oman and Qatar through two long-term contracts.  

Under its 15-year deal with Qatar, Bangladesh pays 12.65 percent of the three-month average price of Brent oil, plus a constant of 50 cents per million British thermal units (mmBtu).