Tokyo Gas, the largest natural gas supplier of Japan, is likely to be selected for conducting the feasibility study on the first ever land-based Liquefied Natural Gas (LNG) terminal in Bangladesh.
Out of two bidders, Tokyo Gas's proposal meets Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) requirements, said a source at Petrobangla.
American energy advisory company Galway Group LLC is the other bidder.
Both parties are now negotiating the different terms and conditions for signing the contract.
"After getting the approval from the finance committee, we will sign the contract as early as we can," said a senior Petrobangla official.
Tokyo Gas will be given one year to conduct the feasibility study. Besides conducting the study during the period, the Japanese company will also prepare the tender documents for builders interested in constructing the terminal.
The energy division of the Ministry of Power, Energy and Mineral Resources has planned to set up a land-based LNG terminal with a re-gasification capacity of 1,000 million cubic feet per day in Matarbari, Cox's Bazar.
But Petrobangla will be able to extend the capacity later if necessary.
Petrobangla, in charge of LNG imports into the country, plans to build a land-based terminal that can handle 7.5 million tonnes of LNG annually in Matarbari.
The project will cost over $1 billion to complete, said Petrobangla officials.
At present, Petrobangla has two floating storages at Maheshkhali, a facility for re-gasifying imported liquefied natural gas, with a 1 billion cubic feet regasification capacity.
It has been importing LNG from Oman and Qatar through two long-term contracts.
Under its 15-year deal with Qatar, Bangladesh pays 12.65 percent of the three-month average price of Brent oil, plus a constant of 50 cents per million British thermal units.