Govt braces for costly LNG future

The disruption showed how quickly a problem at a single LNG facility can affect the national gas supply system.

The proposed new FSRU would provide additional regasification capacity, while the ...

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Asifur Rahman Asifur Rahman The government is moving to expand the country’s LNG import capacity with another floating storage and regasification unit (FSRU) and a land-based facility as domestic gas production continues to decline and the cost of imported gas is rising sharply.

The move comes amid renewed concerns over Bangladesh’s dependence on liquefied natural gas following the recent shutdown of an Excelerate Energy-operated FSRU in Moheshkhali , which has disrupted gas supplies to the national grid.

The government is considering hiring a new FSRU capable of supplying around 550-600 million cubic feet of gas per day (mmcfd), while also moving ahead with plans for a land-based LNG terminal at Matarbari in Cox’s Bazar.

Yesterday, the cabinet committee on government purchase approved a proposal to install a new FSRU in the Kutubjom area of Moheshkhali.

The project will be implemented through government-to-government procurement with China National Energy Engineering and Construction Co.

Rupantarita Prakritik Gas Company, a Petrobangla company, issued a request for expression of interest on June 28 to appoint transaction advisers and/or consultants for the proposed land-based LNG terminal.

The notice was revised on July 15, with the deadline for submitting expressions of interest extended to August 10 from July 27.

The moves mark a further step towards developing the Matarbari facility as Bangladesh seeks to increase its capacity to import and handle LNG.

The expansion comes at a time when the country is increasingly relying on imported gas to compensate for falling domestic production.

Petrobangla data show that domestic gas production dropped 22.1 percent over five years to 19.60 bcm in fiscal 2024-25.

Over the same period, LNG imports increased from 6.12 bcm to 7.98 bcm.