Thursday, 9 December, 2021

Summit proposes new LNG terminal at Matarbari

The company plans to upgrade, utilise Matarbari Deep Sea Port jetty

Summit proposes new LNG terminal at Matarbari

Bangladesh energy sector giant Summit has proposed to set up another Floating Storage and Regasified Unit (FSRU) liquefied natural gas (RLNG) terminal at Matarbari Deep Sea Port in Cox’s Bazar.

Summit will invest to upgrade and utilise Matarbari Deep Sea Port jetty, which is expected by mid-2022, official sources confirmed.

The company needs approval from the ministry of Power, Energy and Mineral Resources.

The company sent a letter to the Energy and Mineral Resources Division in this regard on September 30, 2021.

“Summit is willing to invest a significant amount of money in various studies relevant to any LNG terminal at Matarbari,” read the letter.

“We seek your cooperation in providing access to information and permission to carry out various studies at our own cost,” said the letter sent by Summit Oil and Shipping Co Ltd.

The letter was signed by Summit Oil and Shipping vice president Jafer Ummeeed Khan. Summit Oil and Shipping Co Ltd already formed a committee led by its adviser Engr Md Quamruzzaman.

Quamruzzaman previously served as a managing director of Rupantarita Prakritik Gas Company Limited (RPGCL).

Managing Director of SOSCL Rear Admiral (retd) Riazuddin Ahmed, Summit director Salman Khan, legal counsel of Summit Imtiaz Mahmood and technical expert from Hoegh LNG are also in the committee. “With the completion of Single Point Mooring (SPM) project, the oil jetty adjacent to the 1200MW Coal Power Generation Company Ltd owned coal-based power plant would be redundant,” the letter read.

 It said the Navigation and Metrocean studies are required to be carried out immediately.  The studies are required to assess the traffic situation to allow 120-160 incoming LNG cargoes each year and to find the most suitable mooring system for the FSRU, it also said. Summit also sought cooperation with various stakeholders including Chittagong Port Authority and CPGCBL.                   

In early 2021, Summit proposed to set up another RLNG having combined capacity to supply 500 mmcfd natural gas to the grid at Payra of Patuakhali.

 Summit proposed to set up another RLNG terminal having combined capacity to supply 500 mmcfd natural gas to the grid at Payra. The new proposal comes as the government seems to become increasingly reliant on on imported LNG to meet the country’s energy demand.

Summit also urged the government to allow setting up a transshipment storage terminal at Kutubdia Island in Cox’s Bazar having the capacity between 1.38 lakh and 1.70 lakh cubic meters daily.   

The company already installed a RLNG at Moheskhali Island of the district, which has the capacity to supply 500 mmcfd daily.

According to a fresh proposal, it said the 500 mmcfd capacity of the new RLNG at Pyra will have fixed jetty and hybrid LNG storage and regasification terminal.

Besides, two separate LNG Carriers (LNGC) having capacity of 40,000 cubic meter each will supply LNG to hybrid terminal at Payra from transshipment terminal at Kutubdia, the proposal said, which was sent to Prime Minister’s energy adviser Dr Tawfiq-e-Elahi Chowdhury.

The hybrid LNG terminal will have a storage capacity to supply LNG for eight days, the proposal said. 

The energy giant said the project will be implemented under “no supply, no payment” basis. Besides, the company proposed to set up LNG cold energy utilisation unit that will help to utilise the industrial units, especially for export-oriented food industry.

According to Petrobangla, the government is now importing 850 mmcfd of the imported LNG against the supply of 3145 mmcfd daily to meet the growing demand of natural gas. The government has a plan to import 3,350 mmcfd of LNG against the demand 5,092 mmcfd in 2041 as locally produced gas depleting gradually.