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Govt to import more LNG from Malaysia


Published : 13 Jul 2021 10:16 PM | Updated : 14 Jul 2021 12:45 AM

The government has taken initiatives to import Liquefied Natural Gas (LNG) from Malaysia to meet gas demand in the country.

To this end, a Memorandum of Understanding (MoU) was signed virtually between Ministry of Power, Energy and Mineral Resources of Bangladesh and the Economic Planning Unit of the Prime Minister's Office of Malaysia on Tuesday. 

Nasrul Hamid, State Minister for Power, Energy and Mineral Resources on behalf of Bangladesh and Mustapa Mohamed, Minister of Economic Affairs of the Malaysian Prime Minister's Office on behalf of Malaysia.

State Minister Nasrul Hamid said the share of clean and green fuels in sustainable energy mixing is steadily increasing. Renewable energy will also play an important role in this energy mix.

‘According to the power system master plan, some 3150 million cubic feet of gas will be required per day only for power generation in 2041. But natural gas reserves are declining in our country. Along with increasing exploration activities, the import of liquefied natural gas is also being given importance. Currently there are two FSRUs. Besides, a land based LNG terminal is under construction. Power and energy sector plays an important role behind the scenes to build a prosperous Bangladesh. So the government has given priority to energy security,’ he continued. 

The State Minister said, “There are 20 agreements with fraternal Malaysia on employment, labor, tourism, trade and investment, science and technology, drug control, human trafficking, etc. by bilateral agreement/ memorandum of understanding / protocol. Today's agreement will add a new dimension to energy cooperation.”

Power Division official said Bangladesh Oil, Gas and Mineral Corporation-Petrobangla, Malaysia's Petronas LNG Limited and Global LNG SDN will jointly finalize the terms of trade and carry out the following activities. Initially, the period (term) of the Non-Binding MoU will be two years. However, it can be extended with the consent of both parties.

Among others Md. Golam Sarwar, Bangladesh High Commissioner to Malaysia and Malaysian Ambassador to Bangladesh Puan Haznah Md. Hashim also spoke on the virtual event.