Senior Chevron executives on 3 December reaffirmed the company’s long-standing partnership with Bangladesh during a meeting with Chief Adviser Dr Muhammad Yunus in Dhaka.
“Our enduring partnership with Bangladesh and Petrobangla has supported the nation’s energy security and fueled economic growth for close to 30 years,” said Frank Cassulo, Chevron Vice President of international exploration and production.
“We welcomed the opportunity to meet with Dr Yunus today to learn more about the interim government’s efforts to provide stability and progress in economic recovery, including improving the business climate to attract further foreign investment.”
As the largest US investor in Bangladesh, Chevron has contributed over US $4.1 billion to strengthen Bangladesh’s energy infrastructure in the last three decades, including over $580 million with local suppliers, serving as a reliable source of foreign exchange.
“Chevron is Bangladesh’s largest producer of natural gas, with its operations managed by a workforce comprised of 97% Bangladeshi nationals,” said Eric M Walker, Chevron Bangladesh Managing Director and President.
Despite Lower Initial Capital Costs, Floating LNG Terminals have Higher Operating Costs: IEEFA
Despite lower initial capital costs, floating LNG import terminals have higher operating costs than their onshore counterparts and are more vulnerable to harsh weather and oceanic conditions.
Citing Bangladesh’s recent experience, the Institute for Energy Economics and Financial Analysis (IEEFA) said that the risks are especially important for countries in South and Southeast Asia, which are highly exposed to increasingly severe natural disasters caused by climate change.
It said in a recent briefing that none of Asia’s largest LNG importers – including mainland China, Japan, South Korea, Taiwan, India, and Thailand – currently have floating import terminals.
It mentioned that almost 90% of the floating import projects in South and Southeast Asia are proposed in countries prone to oceanic disturbances brought on by tropical storms and typhoons, including India, the Philippines, and Vietnam.
The case of Bangladesh shows that these storms can have a prolonged impact on energy security.
Recent project cancellations in Bangladesh and the Philippines show that floating terminals may not be so simple to complete, adding to a suite of challenges for rapid LNG demand growth forecasts.
