Petronet LNG Limited, the biggest liquefied natural gas importer of India, has submitted a firm proposal to set up an LNG import facility in Bangladesh at an investment of about $1.00 billion, official said.
The company had signed a memorandum of understanding (MoU) with Petrobangla last year to set up a 7.5 million tonnes a year project to receive and regasify LNG on Kutubdia Island in Cox's Bazar.
According to the agreement, the Petronet is also to set lay a 26-km pipeline to connect the terminal to the consumption markets if the government accepts the proposal.
The firm has now made a formal proposal with techno-economic details including the cost to the Bangladesh government for approval, its Managing Director & CEO Prabhat Singh said.
He said, "We have told them that we can build the land-based LNG receipt facility in 42 months from the date of receiving all approvals."
The project envisions future expansion and can be used for supplying LNG through small barges and LNG trucks to users which are not connected by the gas grid, reports The Economic Times.
Once Bangladesh government accepts the proposal, a formal pact will be signed between Petronet and Petrobangla, Singh said.
Kutubdia islands has a natural harbour with a good draft and a natural breakwater, ideal for setting up LNG terminal.
The proposed terminal is beside the one Bangladesh is looking to set up at Matar Bari in Moheshkhali Island of Cox's Bazar district or Anwara, Chittagong.
The terminal, to be set up on the build-own-operate basis, will supply gas to power plants.