Bangladesh’s First LNG Import Terminal on Schedule to Open in Early 2018
December 13, 2016
CHITTAGONG, BANGLADESH – Following the execution of definitive agreements with Petrobangla (Bangladesh Oil, Gas & Mineral Corporation) earlier this year, Excelerate Energy (“Excelerate”) has completed the required geotechnical and geophysical studies for the implementation of the Moheshkhali Floating LNG terminal. Moheshkhali Floating LNG is a joint effort between Excelerate and the International Finance Corporation (IFC, and a member of the World Bank Group) under a joint development agreement. Completion of these activities allows the project to remain on schedule to receive its first liquid natural gas (LNG) delivery in early 2018, with financial close targeted for early 2017. The studies performed confirmed the viability of the project site location, the superiority of Excelerate’s FSRU and offshore mooring designs, and the overall project cost.
The geotechnical and geophysical studies are significant components of the project and provide the technical path forward to final engineering and detailed design. The studies also provide critical data for the Environmental Social Impact Assessment to ensure that a safe and environmentally sound project will be delivered to Bangladesh and will meet IFC’s requirements. The completion of these studies is a result of the excellent cooperation between Excelerate, IFC, Petrobangla, and local authorities.
“Our dedicated project development, operations, and technical teams are working aggressively to ensure that the project moves forward quickly and efficiently. We stand ready to deliver LNG to Bangladesh and are pleased with the progress we’ve made and relationships we’ve developed with Petrobangla and the Government of Bangladesh,” stated Excelerate Chief Executive Officer Rob Bryngelson. “Excelerate is the only FSRU provider capable of delivering a comprehensive end-to-end floating LNG import solution, and we look forward to a long and productive relationship with Petrobangla in Bangladesh.”
Unlike other floating terminals, where responsibilities are divided among several companies, Moheshkhali Floating LNG will be the world’s first fully integrated turnkey floating LNG terminal whereby all services will be provided under a single contract by a single provider – Excelerate. The company will fully develop, design, permit, construct, install, finance, and operate the terminal. This structure will allow for a single point of interface and responsibility to Petrobangla and provide seamless operations for the Bangladeshi market. Excelerate will own and operate the terminal under a 15-year agreement with Petrobangla.
Under the contract with Petrobangla, Excelerate will provide a floating storage and regasification unit (FSRU), an offshore subsea buoy system to anchor the FSRU, and a subsea pipeline to interconnect into the onshore natural gas system. In addition, Excelerate will provide full operational services, including the provision of port service vessels and overall facility management. The FSRU will be capable of delivering natural gas at a base regasification rate of 500 million standard cubic feet per day, with peaking capacity substantially in excess of this.
The project is expecting to achieve financial close on the project in early 2017, which will allow for the construction and installation of the terminal to commence. IFC is mandated to provide and arrange the financing for the project. Excelerate is in final negotiations for the major project contracts including EPC, O&M, and Port Services.