Summit and US Firm to Import LNG for Power Wants

Import LNG for Energy Needs My News Bangladesh

The private sector will now handle liquefied natural gas (LNG) import in Bangladesh, with US firm Speed Up Energy and local Summit Oil and Shipping Company securing the task. The government decided in a Cabinet Committee meeting to enter into long-term agreements with these companies for 15 years starting in 2026. Currently, all LNG imports have been by government agencies. Additionally, the tenure of three gas-based power plants, owned by Summit Power Limited, was extended by five years. The government also approved the procurement of repair services from a Swiss company for the Ghorashal III Unit Re-Powered Combined Cycle Power Plant’s damaged compressor.

This time the LNG Import of liquefied pure fuel (LNG) goes to begin by way of the non-public sector. Two corporations are getting the job. Certainly one of these is the US firm Speed Up Vitality Bangladesh Restricted, the opposite is Summit Oil and Delivery Firm Restricted of the native Summit Group. They are going to provide LNG for 15 years from 2026.

The federal government has taken a coverage resolution to enter into a settlement with two corporations for long-term LNG import. This resolution was taken on the assembly of the Cupboard Committee on Financial Affairs under the chairmanship of Finance Minister AHM Mustafa Kamal on Wednesday. At the finish of the assembly, the Further Secretary of the Cupboard Division knowledgeable the reporters in regards to the resolution. Amin Ul Ahsan.

Md. Amin Ul Ahsan mentioned Speed Up Vitality will provide one to at least one and a half million (10-15 lakh tons) of LNG yearly. Equally, Summit will provide one and a half million (15 lakh) tonnes of LNG yearly. This settlement is being signed with each corporation for 15 years from 2026. The Division of Vitality and Mineral Assets will provoke the LNG import contract course.

LNG Import and Conversion: Role of Terminals and Government Contracts

After LNG is imported, it’s transformed into fuel by way of pipelines. At the moment there are two floating terminals at Maheshkhali in Cox’s Bazar for LNG conversion. One is managed by Speed up Vitality and the opposite by Summit.

Import of LNG into the nation began in 2018. All the LNG that has been imported thus far has been introduced by authorities companies. At the moment, the federal government imports LNG from Oman and Qatar under two long-term contracts. Two extra agreements have been signed with these two international locations this yr to extend the import of LNG within the nation. Below the brand new contract, they’ll begin supplying LNG in 2026. Aside from this, LNG is usually imported from the open market.

Aside from this, 3.36 million MMBTU of LNG from Switzerland’s Whole Engineering Gasoline and Energy Restricted under the ‘Enhance in Fast Provide of Electrical Energy and Gasoline (Particular Provisions) (Modification) Act-2021’ by Petrobangla underneath the Division of Vitality and Mineral Assets immediately within the assembly of the Cupboard Committee on Public Procurement. 478 crores 63 lakhs 53 thousand 936 rupees have been permitted for import.

The time period of three energy plants elevated by 5 years

Within the cupboard committee assembly immediately, the federal government has determined to increase the tenure of Ashulia, Madhavadi, and Chandina fuel-based mostly energy vegetation by 5 years. Ashulia 33.75 MW, Madhavadi 24.30 MW, and Chandina 13.50 MW are fuel-based mostly energy vegetation. These have been prolonged by one other 5 years from the present expiry date. These three energy vegetation are owned by Summit Energy Restricted. The federal government company Energy Growth Board (PDB) pays 1,118 crore rupees as 5 rupees 65 paise per unit of their 5 years.

Ghorashal III Unit Re-Powered Mixed Cycle Energy Plant’s broken compressor restore service will probably be taken from a Swiss firm.

A coverage resolution has been taken to obtain these providers underneath the direct procurement technique (DPM). Approval has been given to buy electrical energy from a 50 MW solar energy plant in Dimla Upazila of Nilphamari. In this case, for an interval of 20 years, the consortium of ASK New Vitality Firm, AJ Energy Firm, and ATN Options will obtain roughly 1 thousand 732 crores 80 lakhs as 10.698 takas per kilowatt hour.

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