AOT awaits for final nod to supply LNG
২৫ জানুয়ারি ২০১৯ ১১:১৬
।।Special Correspondent।।
DHAKA: Swiss company ASTRA Transcore Energy, AOT now waiting for the final nods from the government of Bangladesh for a long-term deal for supplying the liquefied natural gas (LNG) to the country.
It is almost one and half a year since the world famous European company and the government of Bangladesh signed an MoU, and now the things are at the stage of a finalisation, a highly placed source has confirmed.
The offer is now to be sent to the purchase committee of the cabinet for a final appoval as honourable prime minister Sheikh Hasina, who herself is in the charge of the concerned ministry, has already signed the summery note, the source in the ministry of energy said.
AOT has also been given a letter of appeciation from the office of the prime minister for their efforts and offer.
`We highly appreciate your continued business interest in Bangladesh and recognise your strong interest in supplying liquified Natural Gas (LNG),’ the letter, sent in in mid December 2018, said.
Once finalized, the world famous company AOT will second to supplying world standard LNG to both the Floating LNG Terminals (FSRU) developed by Excelerate Energy Bangladesh Limited (EEBL) and Summit Corporation Limited.
Bangladesh will be benefitted more from AOT offer in comparison with other similar offeres, a concerned person said on the condition of annonimity.
The AOT proposal for 1.25 Metric Ton LNG supply for 15 years has offered 12.00 USD per unit while the country is presently paying 12.65 USD per unit to RasGas, Qatar. The payment term offered by AOT is 45 Days while it is 15 days for RasGas.
Getting one-month extra time for international payment will be high benefiting to the country, a concerned official said.
The mid-december letter, signed by a director at PMO, to AOT’s Global Head for LNG Mr. James O’Brien also mentioned that the follow-up discussions for the LNG supply agreement would be held after general elections.
As the election is over and the new government has been formed under the same leadership of Sheikh Hasina, AOT is now keen to step forward with its support in connection with LNG supply, a connected source with the business offer told sarabangla.net.
The upcoming decision will help not only to getting best LNG supply for the industrial development but also to enhancing the bilateral trade relationship between Bangladesh and Switzerland, the person said in condition of not to be quoted.
The govt was committed to start imported LNG supply to the national grid within the year 2018 to reduce the pressure on own natural gas. Accordingly the first shipment arrived late April last year which was carrying 133,000 cubic metres of liquefied natural gas or LNG from Qatar.
After receiving the first contingent at program in Dhaka the State Minister for Power and Energy Nasrul Hamid said that the government has a robust plan for liquefied natural gas. “We want to go big in LNG because the financing is available. LNG is technologically better, as the cleaner energy needs less land,” he said at a seminar held on early May 2018.
The decisions of choosing companies for LNG supply are being made through a transparent manner and now the ministry is almost in the brink to finalizing AOT as second supplying company, the ministry sources said.
Initially the ministry signed a non-binding MoU with ASTRA Transcor Energy, AOT Trading AG in mid-June 2017 and continued their discussions and negotiations with them. Later in early September a proposal processing committee decided to send the summery to the minister of the ministry of Power, Energy and Mineral Resources (Prime Minister herself) after vetting it under Quick Enhancement of Electricity and Energy Supply (Special. Provisions) Act-2010.
And once the vetting was completed on September 18, 2017 Nasrul Hamid, State Minister for Power, Energy and Mineral Resources sent the summery to the minister of Power, Energy and Mineral Resources (Prime Minister herself) for consideration and approval.
According to a highly placed source the Prime Minister signed the copy of the summery to give her approval as minister of Power, Energy and Mineral Resources at early second week of October 2017.
The ministry then took a decision to send an inter-organisational delegation to visit AOT Headquarters and their industrial sites to learn about their experience and capacities. The delegation comprising of EMRD, Petrobangla, PMO, NBR and Law Ministry went to Switzerland in March 2018 and they submitted a report upon their return and was very positive.
The six-member high-level Bangladeshi team having Towhid Khan , Director, Finance at Petrobangla as head, was consisted of MD. Khalilur Rahman, DG, Admin of Prime Minister’s Office, Sayed Ahmed, joint Secretary, ministry of Law, Kazi M. Anwarul Azim, DGM, RPGCL, Zanendra Nath Sarkar, Joint Secretary, EMRD and a representative from NBR.
This inter-organisational team visited AOT headquarters in March 2018 and reported in a very positive manner based on verifiable facts including the long trading and shipping experience, financial capabilities of the Swiss company, a concerned source has confirmed.
Abul Mansur Md Fayezullah, Chairman, Petrobangla sent a letter to the secretary of the energy and mineral resources division of the ministry of Power, Energy and Mineral Resources in late April last year in this connection. The team has found AOT as experienced in LNG Management, scheduling and trading, Mr. Mansur mentioned in his letter.
And in December 2018 a Director of Prime Minister’s Office wrote to AOT appreciating their efforts and interest.
AOT is presently doing the same LNG supply business with several European countries, America and Canada and is capable in ship-to-ship LNG supply with minimum lead time and maximum payment duration.
Established in 1947, AOT is known to be highly recognized for supporting with quality services in the field of energy. It has also brought a good will for the country through international trading.
Apart from the two FSRUs of 500 MSCFD capacity govt is keen to establish three more land-based LNG terminals at Maheshkhali and Kutubdia in Cox’sbazar and Paira Port in Patuakhali..
The government is planning to import about 2000 mmcfd LNG by installing four separate floating storage and re-gasification unit (FSRU) by the year 2020 and will import LNG at a cost of $2 billion.
