Project detail - EXCELERATE ENERGY BANGLADESH LTD

Who is our customer

FMO’s intended client is Excelerate Energy Bangladesh Ltd (“Excelerate”), a company incorporated in Bangladesh. Excelerate will develop, construct and operate the first LNG import terminal in Bangladesh.

What is our funding objective?

FMO intends to provide an up to USD 30 mln senior loan to Excelerate. The objective of FMO’s financing is to fund the development and construction of the first LNG import terminal in Bangladesh.

Why do we fund this investment?

FMO funds this project as it will fulfil a crucial need for the country. Bangladesh’s once significant gas reserves are being fast depleted given the country’s growing energy demand resulting in a major gas shortage today and the gap is expected to rapidly widen if sources of fuel are not diversified soon. With 62% of the country’s power generation capacity being gas fired, the lack of a reliable supply of gas has imposed a major constraint on development, leading to power shortages, which have caused disruption in industrial production.

What is the Environmental and Social categorization rationale?

This transaction has been categorized as Category A, in line with FMO environmental and social risk categorization. The project requires a Gas Delivery Point, located on a legally protected area, recognized as Ecologically Critical Area. The permanent footprint is limited (45 * 45 m2 un-manned station), impacts on biodiversity are low to negligible. A dedicated biodiversity action plan has been prepared. The biodiversity action plan will seek to ensure net positive gain of biodiversity in the legally protected area. For the rest, the project is about a floating liquified natural gas storage and regasification terminal situated offshore Moheshkali Island, Bangladesh, with a 7.5 km sub-sea gas pipeline connection to an existing underground gas pipeline distribution system. The following Performance Standards are triggered by the transaction: PS1: Assessment and Management of Environmental and Social Risks and Impacts PS2: Labor and Working Conditions PS3: Resource Efficiency and Pollution Prevention PS4: Community Health, Safety and Security PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources IFC PS 5 is not triggered, as the only part of land required for the project, the Gas Delivery Point, is owned by the government. IFC PS 7 is not triggered because no impacts on local groups qualifying as Indigenous were identified. IFC PS 8 is not triggered, as no cultural objects or places were identified.