Excelerate Energy and International Finance Corp (IFC) have secured financing for Bangladesh’s first floating liquefied natural gas (LNG) import terminal, the Moheshkhali project.
The project, which will be located offshore Moheshkhali island in the Bay of Bengal, will be build with a cost of $179.5m.
The co-developers of the Moheshkhali Floating LNG project have secured the debt financing for the project, which will help in expanding access to clean energy in Bangladesh.
IFC has taken the role of a lead financer for the project and helped in arranging the debt financing package of $125.7 million for the LNG project.
The lender has also offered $32.8m loan from its own account, while the balance amount was secured from several organisations including CDC Group, DEG, FMO and JICA.
When completed, the project can help Petrobangla, the state-owned energy company to increase LNG supply to the country by 20%, which is sufficient to generate about 3GW of electricity.
Construction of the project is expected to begin in the fourth quarter of this year and is scheduled for completion and will start services by the middle of the next.
Excelerate chief financial officer Nick Bedford said: "Our partnership with IFC has been essential to the development of this project. IFC has demonstrated its commitment to bringing new energy to Bangladesh with the execution of these agreements.
”Excelerate takes great pride in helping bring sustainable energy solutions to countries with high energy demand, and we expect this project to have a great impact on the wider Bangladeshi economy."
IFC Infrastructure and Natural Resources, Asia Pacific regional industry head Hyun-Chan Cho said: "IFC is committed to a sustained effort towards partnering with Bangladesh in bringing reliable and affordable clean energy to all.
"Addressing the issue of depleting gas supplies is critical for the country. We hope this first LNG import facility in Bangladesh will pave the way to expand support to the power sector and industry, promote growth and mitigate climate change impacts."