Bangladesh seeks to im­port LNG from RI

The Jakarta Post - - BUSINESS - Fe­d­ina S. Sundaryani

State-owned oil and gas gi­ant Per­tam­ina may soon sup­ply its Bangladesh coun­ter­part, Petrobangla, with liq­ue­fied nat­u­ral gas (LNG) to sup­port the South Asian coun­try’s power sec­tor.

Bangladesh plans to tap the cur­rently low-priced and plen­ti­ful global LNG sup­plies to dou­ble its na­tional power ca­pac­ity to 24,000 megawatts (MW) by 2021 and even­tu­ally 40,000 MW in 2031, which will also help boost the coun­try’s in­dus­trial sec­tor.

In­done­sia is among the coun­tries it is eye­ing to im­port LNG from, with a me­moran­dum of un­der­stand­ing (MoU) signed on Fri­day be­tween Per­tam­ina and Petrobangla, in ad­di­tion to one signed by the In­done­sian En­ergy and Min­eral Re­sources Min­istry and the Bangladesh Power, En­ergy and Min­eral Re­sources Min­istry.

Petrobangla chair­man Abul Md. Faizul­lah said the coun­try’s gas sup­plies were ex­pe­ri­enc­ing a deficit, and that Bangladesh would start im­port­ing LNG next April.

Bangladesh is ex­pected to have a gas deficit of 1 mil­lion tons start­ing next year, which may grow to 11 mil­lion tons by 2030.

Although the MoU did not de­scribe a spe­cific LNG vol­ume, Petrobangla was ex­pect­ing a sig­nif­i­cant amount from its In­done­sian brethren.

“We have just given some sort of idea when we met with Per­tam­ina at our of­fice. We say that it might be more than 1 mil­lion tons per year [mtpa],” he said at a press con­fer­ence, adding that if ne­go­ti­a­tions went smoothly, Petrobangla had high hopes that it would start im­port­ing Per­tam­ina’s LNG start­ing next year.

Bangladesh’s first float­ing stor­age and re­gasi­fi­ca­tion unit (FSRU) will be com­mis­sioned by April 2018. It’s sec­ond will start op­er­at­ing next Oc­to­ber. Each unit will have a ca­pac­ity of 500 mil­lion stan­dard cu­bic feet of gas per day (mm­scfd).

Per­tam­ina is not the first com­pany Bangladesh has eyed for LNG im­ports. Petrobangla is ex­pected to sign a deal with Qatar’s RasGas on Sept. 25, for a 15-year con­tract start­ing next April to im­port 1.5 mtpa for the first five years and 2.5 mtpa for the next decade af­ter that.

The LNG Bangladesh seeks to im­port is in­tended for the power sec­tor, which pow­ers 71 per­cent of elec­tric­ity in the coun­try, with a de­mand of 700 mm­scfd.

The Bangladesh gov­ern­ment hopes the growth of the coun­try’s power sec­tor can also help it de­velop its in­dus­trial sec­tor and reach its tar­get to ex­port US$50 bil­lion worth of ready made gar­ments by 2021.

In­done­sia con­tin­ues to have an an­nual sur­plus of LNG that re­mains un­ab­sorbed by both the do­mes­tic and for­eign mar­ket.

Data from the En­ergy and Min­eral Re­sources Min­istry shows the coun­try had an ex­cess of 66.6 car­goes, made up of 43 car­goes in­tended for ex­port and 23.6 car­goes for the do­mes­tic mar­ket last year. This fig­ure in­creased from 22 car­goes in 2014.

Un­der the signed MoU, Per­tam­ina also seeks op­por­tu­ni­ties to de­velop nat­u­ral gas and LNG in­fra­struc­ture, in­clud­ing FSRU, trans­mis­sion pipes and a pos­si­ble in­te­grated-gas power plant in Bangladesh.

Per­tam­ina gas and re­new­able en­ergy di­rec­tor Yenni An­dayani said this was part of the firm’s plan to ex­pand its in­fra­struc­ture busi­ness to South Asian coun­tries such as Bangladesh, In­dia and Pak­istan.

Fur­ther­more, Per­tam­ina has formed a con­sor­tium made up of undis­closed in­ter­na­tional and Bangladesh part­ners to fol­low up on the MoU.

“The con­sor­tium is pre­par­ing an un­so­licited pro­posal for an elec­tric­ity so­lu­tion in the form of an in­te­grated project start­ing from LNG sup­ply un­til power sup­ply to the Bangladesh gov­ern­ment,” she said.

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