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