DHAKA, Feb 23, 2018 (BSS) - The country's first two liquefied natural gas (LNG) terminals, which are set to go into operation this year, will accelerate both local and foreign direct investment (FDI) in Bangladesh through ensuring energy security and meeting its growing demand, observed experts.
"As per the schedule, the country's first floating LNG terminal will supply LNG to the national grid from June which will ensure energy security and increase the flow of investment," Energypac Power Generation Ltd (EPGL) Managing Director and Chief Executive Officer (CEO) Humayun Rashid told BSS here today.
The government is constructing two Floating Storage and Re-gasification Unit (FSRU) Terminals at Moheskhali in Cox's Bazar district.
Singapore-based Excelerate Energy is setting up the first FSRU having 500 million meter standard cubic feet per day (mmscfd) capacity at Moheshkhali in the Bay of Bengal, which will be operational from May this year and Summit LNG Terminal Company, a unit of Summit Group, is developing the second floating facility at its own cost having 500 mmcfd per day capacity, which is likely to open in October this year. The government also signed an agreement with Qatar's state-owned RasGas Company in 2017 for importing yearly 1.8 million tons LNG under G2G process. The import is likely to increase up to 2.5 million annually.
Besides, the government is taking a series of projects to face the growing energy demand and ensure the energy security.
Humayun Rashid said the government projects will augment energy supply smoothly and meet the increasing demand as the country has been experiencing shortage of energy resources for many years.
CPD Research Director Khondaker Golam Moazzem said Bangladesh is entering a new era through the LNG terminals, which will accelerate the investment flow as many investors are waiting for gas to open their industry.
"Everyone knows that Bangladesh is going through gas crisis. If the terminal can start the supply of gas to the national grid, there will be a positive impact on the country's industrial sector," he added.
Moazzem urged the authorities concerned to build more terminals as early as possible, saying the initiative of the government will play a vital role in accelerating the economy.
He also urged the government to fix the gas price for the next five years in order that the business community can calculate their costing properly.
Bangladesh is using gas in electricity production, fertilizer factories, industries, commercial organizations, CNG and housing. Though the country's existing gas production has increased to over 2,700 million cubic feet daily, yet the nation is facing 900 million cubic feet gas deficit.