Gas importer Petronet LNG Ltd plans to set up a ₹5,000-crore LNG import terminal at Kutubdia islands in Bangladesh as it looks to build terminals to feed demand in neighbouring countries.

“We have proposed to construct a 5-million tonnes (mt) per annum capacity liquefied natural gas (LNG) import terminal at Kutubdia islands, off Cox’s Bazar,” Petronet Managing Director and CEO Prabhat Singh told PTI here.

“Bangladesh has huge unmet gas demand, particularly to power generation. During the recent visit of Petroleum Minister Dharmendra Pradhan to Dhaka, we proposed to set up a 5 mt capacity terminal on government-to-government basis,” he said.

Initial response from Bangladesh, he said, has been encouraging and the company officials will be visiting Dhaka again this month to make a presentation on its plans.

“While we will source gas (from international market) and supply (to utilities in Bangladesh), we are seeking some kind of payment assurances to cover for our investments in an event where we have to pull out of the country,” he said.

Besides Bangladesh, Petronet has also proposed to set up 1 mt LNG terminal in Sri Lanka to meet local demand.

Singh said Kutubdia islands has a natural harbour with good draft and a natural breakwater, ideal for setting up an LNG terminal.

The proposed terminal is besides 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.

Petronet is one of the five global energy firms shortlisted for setting up this LNG import terminal. The others shortlisted include Anglo-Dutch super-major Shell, China’s Huanqiu Contracting & Engineering, Tractebel Engineering of Belgium and Japan’s Mitsui.

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