Talks on LNG import with 14 firms start tomorrow

The Energy Division is set to award unsolicited deals to some foreign companies to import 200mmcfd (LNG) gas from spot market under "Small Scale LNG Supply" project by February 2018, sources said.
A high-level negotiation committee, headed by Managing Director of Rupantarito Prakitik Gas Company Ltd (RPGCL) MD Kamruzzaman, will kick off the process from August 7 for next two days to meet the country's energy demand.
Around 14 international LNG supplier companies will sit at the negotiation table.
"We are to undertake an initiative to import small scale LNG through using KAFCO (Karnaphuli Fertilizer Company Limited) and Chittagong Urea Fertilizer Ltd (CUFL) jetties. Initially, we will import 100-200 mmcf of gas" Kamruzzaman said.
According to the Energy Division, around 14 companies have been listed to start talks with the division. Earlier they had shown interest to the Energy Division.
"On August 7, we will see the presentations of the listed companies, on August 8, we will discuss various issues relating to LNG export with them, and on August 9, we will start negotiation," a senior official of the Energy Division said.
"Price, quality and timing will dominate the negotiation," the official added.
He said the government will import small scale LNG by February 2018 to meet the domestic demand.
Besides, the government is to install FRSU at Maheskhali Island in Cox's Bazar to facilitate the increase in daily gas supply by 500 mmcf LNG from Qatar to meet the country's growing demand, officials said.
Earlier, the government had inked a deal with Excelerate Energy for FRSU to be built in 18 months. Qatar's state-run firm-RasGas Company Limited (RasGas) will supply gas. But the government will also keep some other sources open for LNG import to mitigate gas crisis.
The demand for gas in domestic market is increasing as government in principle decided to generate 3,000MW of electricity in the next six to nine months under unsolicited deals and tendering process. Gas is mostly use in generating power.
Power Division has already submitted a summary proposal to the Prime Minister's Office for generating 3,000MW of electricity on an emergency basis as the power supply gap is estimated to widen to 1977MW next year against the demand for 14,055MW.   
Electricity supply is currently facing a shortfall of 12 percent against the demand for 12,371MW. However, the country needs 500 to 700 mmcf of gas per day.