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Bangladesh plans closure of diesel power

POLICY BANGLADESH plans to close all of its power government is currently preparing measures
plants fired by diesel by next June, State Minister designed to allow the private sector to import
Bangladesh is looking for Power, Energy and Mineral Resources Nasrul oil and gas for retail purposes. “Private pow-
to reduce power sector Hamid said last week during an energy confer- er-producing companies already import oil on
emissions. ence in Dhaka. In total, 12 diesel-fired plants in their own. But now we are formulating a policy
the country generate up to 1 GW of electricity. guideline allowing them to import other types
“The power plants [that] run on other types of of oil and gas and we want them to retail it up
oil will also be phased out within the next two to to customers,” he said.
three years,” Hamid was quoted by Bangladeshi “[The] private sector can import all kinds of
media as saying. “But, dual-fuel, gas and die- liquid fuel as well as LNG alongside the LPG,” he
sel-based plants will remain in operation.” added. “They can set up their own establishment
Between the coronavirus (COVID-19) pan- and supply to dealers for selling in petrol pumps.”
demic and the current energy crisis brought Regarding the energy transition, Hamid said
on by Russia’s invasion of Ukraine, Bangladesh regardless of the plans under consideration by
has found itself in a serious situation regarding the government, the main issue concerns what-
energy generation and distribution. Earlier this ever energy will be less costly. He said it was not
year the government suspended the operations a matter of whether prices would go up or not,
of diesel-powered plants in an effort to cope with but whether the transition would be affordable.
the steep rise in the cost of fuel, but load-shed- Hamid went on recommend that electric vehi-
ding brought about by the energy crisis forced cles (EVs) be used to replace diesel transport.
the government to backtrack on that policy as “The public sector bus and train should come
power shortages began to have an impact indus- up first to use [electricity] as its energy efficiency
trial production and everyday life. is 80%, while diesel-run vehicle efficiency is only
Hamid told the gathering that the 20%,” he said. ™

Singapore's AG&P plans first LNG

terminal in India by 2024

PIPELINES & SINGAPORE-BASED Atlantic, Gulf and Pacific Meanwhile, AG&P plans to start operations
TRANSPORT (AG&P) intends to complete its first LNG ter- of its LNG terminal in the Philippines during
minal in India by 2024, according to Karthik the first quarter of 2023. The Philippines LNG
The project has suffered Sathyamoorthy, president of the company’s LNG (PHLNG) project will have a capacity to process
delays because of the terminals and logistics division. 5mn tpy and it will supply the existing 1.2-GW
COVID-19 pandemic. “AG&P is very bullish on an India import Ilijan power plant in Bantangas. The former
terminal and our aim is to have a terminal up LNG carrier ISH has been converted into a float-
and running in the next two years,” he said ing storage unit (FSU) and positioned at the site.
in a report from Reuters. Although the com- There are also two storage tanks under construc-
pany broke ground for a terminal at Karai- tion at the site, which will be incorporated into
kal port in Puducherry in February 2020, the project in 2024.
Sathyamoorthy said AG&P continues to look AG&P has signed a 15-year contract with
for possible alternative sites in other parts of ADNOC Logistics and Services covering the
southern India. supply, operations and maintenance of the
Work at the Karaikal site was slowed by the 137,512 cubic metre FSU.
onset of the coronavirus (COVID-19) pan- According to a statement issued by AG&P,
demic. “We have restarted focus on the import construction of the terminal began in March
terminal,” Sathyamoorthy said. “But in addition 2021. The cost of the project is put at PHP14.6bn
to Karaikal, we have a couple of other options as ($261mn).
well,” he said, adding that the location does not Besides the contract with ADNOC, PHLNG
have to be in Karaikal without giving a reason. will also receive LNG from spot market pur-
The terminal planned for Karaikal is to have chases and short- and mid-term agreements,
a capacity to process 1mn tonnes per year (tpy) AG&P said.
of LNG and distribute the natural gas to power Philippines’ First Gen Corporation also plans
plants, industries and commercial customers to start operations in the Philippines at an LNG
within a 300-km radius. terminal in 2023.™

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