Mr. Hamad Mubarak Al-Muhannadi, CEO of RasGas and Mr. Abdul Mansur Md Faizullah, Petrobangla Chairman signed the country’s first ever sales and purchase agreement on 25 September 2017 in Doha to import 2.5 million tones of Liquefied Natural Gas (LNG) annually for 15 years to meet the country’s demand.
H.E. Dr. Mohammed bin Saleh Al Sada, Qatar’s Minister of Energy and Industry, the honorable Bangladesh State Minister Nasrul Hamid, H.E. Mr. SaadSherida Al Kaabi, the President and CEO of Qatar Petroleum, and Mr. Syed Ashfaquzzaman, Secretary of Petrobangla attended the meeting.
Earlier, Qatari officials initialed the deal in Dhaka in July and Cabinet Purchase Committee approved the deal.
Nasrul Hamid, who has been leading a high-profile energy delegation on a visit to Qatar, said Bangladesh would need to import huge amounts of gas, as country’s demand will go up to 8,000 mmcfd by 2041 from the current demand of 3,600 mmcfd.
He also said that Bangladesh is now developing two floating storage and re-gasification units (FSRU), having annual 7.5 million tonnes capacity, to import and process the LNG to meet the country’s growing demand.
RasGas sets a condition that Bangladesh would not be able to review the terms and conditions within nine years. Per year 1.7 million tonnes LNG will be imported by base volume condition where total cost would be around $ 6.50 per Mcf that is three times higher than the average price. The quantity could be increased later as the deal is flexible in both sides.
From the RMG sector, Mr. Engr. Ahsan, owner of Touha Textile reacted instantly and said, “We are struggling at the present gas price. It’ll be very difficult to sustain if the gas price will increase more. On the other hand, Bangladesh Energy Regulatory Commission is trying to increase electricity price.”
The government has also signed deals with US firm Exellarate Energy and local firm Summit group, Indian firm Reliance Group and Chinese firm Hong Kong Shanghai Manjala for supplying capacity floating storage and re-gasification unit (FSRU) daily 500 MMCFD commissioned by 2018, 500 MMCFD commissioned by 2019 and 500 MMCFD commissioned by 2020.