On Wednesday, the International Finance Corporation (IFC), together with Excelerate Energy Bangladesh Limited (Excelerate) announced that they have secured debt financing to co-develop the Moheshkhali Floating Liquefied Natural Gas (LNG) project.
The pair stated that this project marks Bangladesh’s first LNG import terminal.
LNG import terminal
The LNG import terminal is projected to provide the critical infrastructure required for the country to access natural gas from global markets and enable the state-owned energy company, Petrobangla, to increase natural gas supply in the country by up to 20%.
As the lead arranger for the project, IFC helped arrange the debt financing package of $125.7 million for the project, including some of its loan of $32.8 million from its own account and the balance from UK-led CDC Group, Germany’s DEG, Dutch-lead Entrepreneurial Development Bank and Japan International Cooperation Agency.
Energy solutions to Bangladesh
Excelerate’s chief financial officer, Nick Bedford, commented:“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.”
Also commenting on the development was IFC regional industry head, infrastructure and natural resources, Asia Pacific, Hyun-Chan Cho:“IFC is committed to a sustained effort towards partnering 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.”
IFC is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries.
Featured image: 123rf