US-based Excelerate Energy's bid for building a floating storage and regasification unit (FSRU) near Payra seaport, its third in the Bay of Bengal, fails as an initial deal is rescinded.
The interim government has scrapped the term-sheet agreement with the energy giant's Bangladesh outfit, said sources.
State-run Petrobangla has issued a letter terminating the non-binding agreement with Excelerate Energy, they said.
The scrapping of Excelerate Energy's deal with Petrobangla happens to take place within a couple of weeks of former US ambassador to Bangladesh Peter D Hass having joined Excelerate Energy as a strategic adviser.
The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) earlier had directed Petrobangla to cancel the deal as the interim government decided not to ink any fresh deal under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 (Amended 2021), officials said.
Petrobangla would need to extend the tenure of the term-sheet agreement and ink a terminal use agreement (TUA) with Excelerate Energy to ensure its effectiveness, he said.
