Petronet LNG signed a contract with PetroBangla for construction of LNG Terminal

Upcoming LNG terminal project in Bangladesh will increase the LNG market globally.

Bangladesh: India’s Petronet LNG and Bangladesh Oil, Gas and Mineral Corporation (PetroBangla) have signed an agreement for construction of LNG terminal in Bangladesh at Kutubdia Island. The value of project is expected to be more than USD900 million and the terminal after construction would have a capacity of 7.5 MMTPA of LNG. It is expected that the project would be completed within four years.

TechSci Research depicts that growing focus on increasing construction of LNG terminals, expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favourable government policies is boosting demand for LNG across the globe. In addition, increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of TechSci Research “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.