The proposed land-based LNG terminal near Matarbari Deep Sea port will now be implemented through public private partnership (PPP).  

The Advisers Council Committee on Economic Affairs (ACCEA) at a meeting on Tuesday, made the decision in principle.

Finance Adviser Dr Salehuddin Ahmed, who is now in the USA on an official trip, presided over the meeting virtually.

Officials at the Energy and Mineral Resources Division said the planned land-based terminal-development project was undertaken to ensure the country's stable liquefied natural gas (LNG) import and re-gasification.

State-owned Rupantorito Prakritik Gas Company Ltd (RPGCL), a wholly owned subsidiary of Bangladesh Oil, Gas & Mineral Corporation—Petrobangla, took up the project few years ago and moved to implement it through an unsolicited process. 

Earlier, as per directive of the Energy and Mineral Resources Division the RPGCL cancelled a short-listing process in this regard.

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The 1,000 million cubic feet per day (mmcfd)-capacity land LNG terminal at Matarbari in Cox's Bazar was processed under the recently repealed “Speedy Increase of Power and Energy Supply Act (Special provision-2010)”, as revised in 2021.

The defunct law had allowed the implementing agency to award any contract without a competitive tender process.

Such practice drew huge criticism on transparency issues from the business circles. 

As a result, immediately after assuming office the interim government repealed the Speedy Increase of Power and Energy Supply Act (Special provision-2010)” and cancelled all projects pending under the law.

Bangladesh has two Floating Storage and Re-gasification Units (FSRUs) at Moheshkhali in Cox's Bazar. These terminals are operated by Excelerate Energy and the Summit Group.

Once the new land-based LNG terminal is implemented, it will be first of its kind, said the officials.