Excelerate, IFC secure funding for Bangladesh’s first LNG import terminal

Excelerate Energy signed a debt financing deal with International Finance Corporation (IFC) for Bangladesh’s first liquefied natural gas (LNG) import terminal.

The two companies are co-developing the Moheshkhali floating LNG project with a price tag of $179.5 million.

Excelerate Energy reminded that the equity for the project had been tied up earlier with IFC coming in with a contribution of $10.8 million and Excelerate’s equity amount of $43.1 million.

As lead arranger for the project, IFC helped arrange the debt financing package of $125.7 million for the LNG project including IFC’s loan of $32.8 million from its own account and the balance from CDC Group, DEG, FMO and JICA.

The funding will support the timely construction and installation of the fixed infrastructure required for the project, Excelerate said.

Bangladesh’s first LNG import terminal will enable Petrobangla, the state-owned energy company, to increase natural gas supply in the country by up to 20 percent, sufficient to support up to 3,000 MW of power generation capacity.

The construction of the terminal will commence in the fourth quarter of 2017 and is expected to be in service by mid-2018.

The terminal will include the provision of one of Excelerate’s existing floating storage and regasification units (FSRU) with a 138,000 cubic meters storage capacity, the installation of a subsea buoy system anchored offshore, and the employment of port service vessels during operation.