Petronet to set up $950 mn LNG Project in B'desh

Resource Digest - - NEWS IN BRIEF -

In­dia's largest LNG im­porter Petronet has signed an agree­ment to set up a $950 mil­lion liq­ue­fied nat­u­ral gas im­port project in Bangladesh. Petronet signed an MOU with Petrobangla to set up a 7.5-mil­lion-tonne-a-year project to re­ceive and re­gasify LNG on Ku­tub­dia Is­land in Cox's Bazar and lay a 26-kilo­me­tre pipeline to con­nect it to the con­sump­tion mar­kets. “We in­tend to start marine sur­vey work this month and are tar­get­ing 2020 for com­ple­tion of the project,” Petronet LNG CEO & MD Prab­hat Singh said. Singh signed the mem­o­ran­dum of un­der­stand­ing with Petrobangla sec­re­tary Syed Ash­faquz­za­man on De­cem­ber 30. The project en­vi­sions fu­ture ex­pan­sion and can be used to sup­ply LNG through small barges and LNG trucks to users which are not con­nected by gas grid. While what has now been signed is just a pre­lim­i­nary agree­ment, a for­mal pact will be signed once a joint ven­ture is agreed be­tween Petronet and Petrobangla.

“We are keen that Petrobangla be­comes part of the joint ven­ture project and are will­ing to of­fer them up to 26% stake. But they are not keen to in­vest due to fund con­straints.”

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