Bangladesh approves 600 mmcfd floating LNG terminal at Moheshkhali

Bangladesh on 12 November approved a proposal from China National Energy Engineering and Construction Co Ltd (CNEE) to develop the country’s third floating liquefied natural gas (LNG) terminal. The facility will be built off Kutubjum in Moheshkhali, Cox’s Bazar, to expand import capacity as a persistent gas shortage affects power generation and industry.

The proposed floating storage and regasification unit (FSRU) will receive LNG from carriers, store it and convert it back into gas for delivery to Bangladesh’s national transmission network. It will have a standard regasification capacity of 600 million cubic feet per day (mmcfd), with peak output of 750 mmcfd. CNEE’s proposal envisages operations starting in 2028.

Bangladesh’s two existing floating terminals, both at Moheshkhali, have a combined capacity of about 1,100 mmcfd. The third unit would raise that figure to 1,700 mmcfd at standard output, an increase of about 55 per cent. Combined capacity could reach 1,850 mmcfd when the new unit operates at peak output.

The Cabinet Committee on Government Purchase cleared the state-owned Chinese company’s proposal under a government-to-government arrangement. The proposal sets out two options, costing Tk 123.24 billion (Tk 12,324 crore) over 15 years or Tk 131.61 billion (Tk 13,161 crore) over 20 years. The committee had deferred the proposal in October to review its financial terms and approved it in November at the proposed cost.

This story was originally published by Maritime Gateway. Read the full story at Maritime Gateway →