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The government has taken two initiatives to boost the country’s gas supply, planning to import five cargoes of liquefied natural gas (LNG) from Oman and Malaysia in 2027 and set up a new floating LNG terminal in Maheshkhali, Cox’s Bazar.
The proposed terminal will cost between Tk 12,324 crore and Tk 13,161 crore over a period of 15 to 20 years.
The proposals from the Energy and Mineral Resources Division were approved at a meeting of the Cabinet Committee on Government Purchase on Thursday, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
Under the decisions, Bangladesh will import three LNG cargoes from OQ Trading Limited (OQT) of Oman and two from Malaysia’s Pantech Energy Sdn Bhd in 2027.
The move is aimed at ensuring LNG supplies next year through existing agreements as well as purchases from a new supplier.
The three cargoes from OQT will be imported under Bangladesh’s existing long-term and short-term agreements with Oman. The committee recommended approval of three separate side-letter agreements for the purchases, which will be made on a government-to-government (G2G) basis.
The committee also recommended approval of the proposal to purchase two cargoes from Malaysia’s Pantech Energy.
The price has been set at $0.18 per million British thermal units (MMBtu) below the Japan-Korea Marker (JKM) rate. However, the number of cargoes may be increased or reduced by mutual agreement between the two parties.
New terminal in Maheshkhali
Alongside LNG imports, the government is also planning to expand its capacity for storing and regasifying the fuel.
To this end, the committee recommended approval of a proposal to establish a new floating storage and regasification unit (FSRU) at Kutubjom in Maheshkhali, Cox’s Bazar.
China National Energy Engineering and Construction Company Limited (CNEE) has submitted the proposal under the G2G arrangement.
According to the proposal, the project will cost around Tk 12,324 crore over 15 years and Tk 13,161 crore over 20 years.
An FSRU stores imported LNG aboard a vessel before converting it back into gas and supplying it to the national grid through pipelines.
Expanding terminal capacity is therefore crucial to increasing the country’s ability to receive imported LNG and deliver it to consumers.
The proposed imports from Oman and Malaysia, together with the new terminal, are part of the government’s broader efforts to strengthen the country’s import-dependent gas supply system.
