The government has approved a proposal to sign a memorandum of understanding (MoU) with the consortium of Japanese Marubeni Corporation for building the country's biggest ever deep sea LPG terminal at Maheshkhali.
Japanese Marubeni Corporation, Swiss trading firm Vitol and local PowerCo International will build the million-tonne capacity LPG terminal at a cost of $305 million.
The Energy and Mineral Resources Division of the Ministry of Power Energy and Mineral Resources has asked Bangladesh Petroleum Corporation (BPC) to take necessary initiatives to sign the MoU.
Md Anisur Rahman, senior secretary of the energy division, confirmed the news to The Business Standard.
He said, "The prime minister who also holds the post of the minister of energy and mineral resources has approved the proposal. Therefore, we've asked the BPC to take necessary measures to sign the MoU with the consortium."
The project will be constructed on the Build, Own, Operate and Transfer (BOOT) model, he added.
The terminal will be able to handle large LPG ships directly, helping to cut down import and distribution costs by $35-40 per tonne.
LPG delivered there will be sent directly via special smaller ships to various storage facilities of different private companies in Chattogram and Mongla at a cost much cheaper than the current rate.
As a result, the market price of a 12.5kg LPG cylinder is projected to come down by Tk30-40, according to market players.
Presently, companies import LPG from the Middle East by small or bigger ships that are anchored far away from Chattogram and Mongla ports. Smaller lighterage ships unload the gas and deliver it to storage tanks on the shore. This process adds a huge extra cost.