Energy Division for granting waiver to US company

The Energy Division suggested that the Shipping Ministry should grant the US-based Excelerate Energy , chosen to set up  a  liquefied natural gas (LNG) terminal,  general waiver under the Bangladesh Flag Vessel Protection Ordinance, 1982.
Bangladesh Flag Vessel Protection Ordinance, 1982, Flag of convenience (FOC) is a business practice whereby a merchant ship is registered in a country other than that of the ship's owners, and the ship flies that country's civil ensign.
The owner of a ship may register the ship under a flag of convenience to reduce operating costs or avoid the regulations of the owner's country. The closely related term open registry, which describes a ship register that will register foreign-owned ships, also exists.
Following a meeting with a high official of the US government last week, the Energy Division has taken up the move like Chevron's wind-up from Bangladesh without settling payment of dues.
Energy Division wrote the Shipping Ministry to declare general waiver to the US company. However, the company had already obtained huge waivers in different SD -VAT and other taxes.
The overall cost for handling and re-gasification of the imported LNG would be $0.59 for each thousand cubic feet of gas.
Of the total cost, Excelerate Energy will realise $0.49 and other service charges, such as tugboat charge, fuel costs and port fees would cost another $0.10, he said.
However, local company Summit Group has signed an initial contract with Petrobangla to set up similar plant that will cost the government $0.45 per 1,000 cubic feet of natural gas. Summit will transfer the facilities to Petrobangla after operating it for 15 years.
"According to the signed agreement, per unit processing cost of Summit gas will be 0.45 cent which is lower compared to that of the US company Excelerate Energy Bangladesh Limited."
However, the US company asked for $ 0.47 for per unit LNG processing cost…now we are set to allow them to enjoy all tax holidays as per their wish," a senior official of the Energy Division said.
 As per Bangladesh's law, the foreign countries should follow the ordinance along with some other regulations implied by the Shipping Ministry in accordance with the country's Cabotage laws.
This ordinance also ensures regular checking system and monitoring system on security related issues of a country. "If they get the waiver we will lose our authority to vigilance on the vessel…it should not happen," the official added.
The Excelerate Energy will set up Bangladesh's first terminal to handle imported liquefied natural gas and meet growing demand for the energy in the country in innovative floating LNG solutions.
The company will install a floating storage and re-gasification unit (FSRU) and LNG terminal on the island of Moheshkhali in the Bay of Bengal. It would develop the terminal in 23 months and operate it for the next 15 years to facilitate a supply of 500 million cubic feet of natural gas per day from imported LNG.