The terminal is Bangladesh's first LNG import facility, and this latest announcement signifies the official commencement of operations for the project. This milestone was achieved approximately 25 months after the execution of project agreements, which took place in July 2016, with state-owned Bangladesh Oil, Gas & Mineral Corp. (Petrobangla) and 13 months following the receipt of all permits required to achieve financial close in August 2017 with its lenders, led by International Finance Corp. (IFC).
The terminal is located offshore Moheshkhali Island in the Bay of Bengal. It has already started delivering natural gas to the Chittagong region of Bangladesh, marking the first time the country has received natural gas from the global market. The new terminal allows Petrobangla to procure LNG from international natural gas markets and is expected to increase natural supply to the country by 20%.
Excelerate's Managing Director, Steven Kobos, said: “This innovative project would not be possible without the tremendous support and collaboration of Petrobangla and the Government of Bangladesh.
“I am proud of our team for successfully completing this critical piece of infrastructure under some of the most challenging offshore conditions. I believe that MLNG will support the future growth of Bangladesh's economy, and we are committed to providing safe and reliable operations for many years to come.”
IFC Regional Head of Infrastructure, Asia, Hyun-Chan Cho, added: “This is a thrilling achievement for Bangladesh, and IFC congratulates the Government of Bangladesh, Petrobangla, and Excelerate Energy who have been tremendous partners to work with. IFC is committed to the Bangladesh power and gas sector, and IFC's support to the project has been multifaceted as an early shareholder, and the lead debt arranger. Moheshkhali LNG is a transformational project that will create a new market for energy supplies into the country, help diversify fuel sources and secure the much-needed additional natural gas to address power shortages in the country.”
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