Petrobangla, the state-run Oil, Gas and Mineral Resources Corporation, on Tuesday signed a non-binding memorandum of understanding with trading agency Gunvor Singapore Pte Ltd to import Liquefied Natural Gas under a long- term contract.
Petrobangla and Gunvor will prepare documents for commercial agreement later, said officials.
With this, Petrobangla tied up with five companies to facilitate LNG imports, Petrobangla chairman Abul Mansur Md Faizullah said at the contract signing programme.
Earlier, Petrobangla signed similar MoUs with the companies of Qatar, Oman, Indonesia and Switzerland for LNG imports and its transportation to Bangladesh under long-term contracts.
Petrobangla is expected to sign a 15-year agreement with Qatar’s RasGas to import LNG, said officials.
The government plans to increase gas supplies from LNG imports in the face of fast depleting domestic reserves of natural gas.
Installation of two floating terminals and re-gasification units is underway near Moheshkhali Island in Cox’s Bazar to enable the government to increase daily gas supplies by 500 mmcfd from April 2018 and another 500 mmcfd from October 2018.
State minister for power, energy and mineral resources Nasrul Hamid said that the government planned to set up LNG-based power stations to meet the growing demand of electricity.
Besides long-term agreements with different state-owned enterprises, the government would also explore spot markets and invite tenders for mid-to-long-term contracts to import LNG, he said.
Petrobangla now supplies approximately 2,750 million cubic feet per day against a demand for more than 3,700 mmcfd gas amid frequent disruption in power generation and industrial production.