Bangladesh delays FLNG terminal plan after finding quote excludes pipelines
Dhaka (Platts)--26Nov2012/409 am EST/909 GMT
Bangladesh's plan to build its first floating LNG import terminal has
been delayed after the consortium chosen in a preliminary selection process,
US-based Astra Oil and Excelerate Energy, indicated its quote was not
inclusive of pipeline costs, Petrobangla Chairman Hussain Monsur said Monday.
The consortium quoted a processing fee of $0.39/Mcf to cover
installation and processing, LNG import and re-gasification costs, but
subsequently said its quote did not include the installation of sub-sea and
onshore pipelines, Monsur said.
It also sought an engineering, procurement and construction contract fee
and credit support, he added.
"We sought clarification from the consortium over the deviation from its
initial quote, but it is yet to come up with satisfactory response," Monsur
said. If the consortium does not provide a satisfactory response, Petrobangla
might relook its selection, he added.
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South Korea's Samsung C&T Corp. and India's Hiranandani Electricity were
also short-listed to submit final bids by June 11 after the initial January
31 deadline was extended five times.
Bangladesh is planning a FLNG import terminal on Moheshkhali island
in the Bay of Bengal with a capacity of 5 million mt/year, regasification
capacity of at least 500,000 Mcf/d and berthing and mooring facilities for
LNG ships with a capacity of 138,000-260,000 cubic meters, which Petrobangla
is looking to contract on a build-own-operate-transfer basis for 15 years.
The country signed a memorandum of understanding to import 4 million
mt/year of LNG from Qatar Petroleum in January 2011 and its private sector
can also import LNG under recent policy changes. It has also moved to build
power plants based on LNG.
Bangladesh's natural gas output hovers around 2.25 Bcf/d against demand
of 2.7-3 Bcf/d.
--Mohammad Azizur Rahman, email@example.com
--Edited by Wendy Wells, firstname.lastname@example.org