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China gets approval to set up third LNG terminal at Kutubjom
Bangladesh has moved to establish its third liquefied natural gas (LNG) terminal at Kutubjom in Moheshkhali, Cox’s Bazar, with a Chinese state-owned company proposed to develop the facility under a government-to-government (G2G) arrangement.
The proposed floating storage and regasification unit (FSRU) will be developed by China National Energy Engineering and Construction Company Limited (CNEE), which submitted a proposal to the Energy and Mineral Resources Division.
The Cabinet Committee on Economic Affairs initially gave policy approval to process the proposal on July 28, 2026, as the government seeks to strengthen the country’s LNG import capacity and address its persistent gas shortage.
The proposed terminal will have a basic daily regasification capacity of 600 million cubic feet (mmcfd), with a maximum capacity of 750 mmcfd.
It is expected to convert imported LNG into gas for supply to the national transmission network.
Project cost and service charges
According to documents from the Energy and Mineral Resources Division, the government will have to pay approximately Tk 12,324 crore under a 15-year arrangement or Tk 13,161 crore under a 20-year arrangement.
Under the earlier proposal, CNEE sought a daily service fee of $342,000 for the 15-year agreement. This is around 35–37 per cent higher than the daily charges for the country’s two existing floating terminals operated by Excelerate Energy and Summit LNG.
Earlier rejection and fresh approval
The Cabinet Committee on Government Purchase returned the proposal for further review in October, raising questions about its cost and other aspects.
However, at a meeting on Thursday, November 12, the committee approved CNEE’s offer without changing the proposed overall cost, according to the Finance Ministry statement.
Bangladesh currently has two floating LNG terminals at Moheshkhali, with combined daily regasification capacity of around 1,100 mmcfd.
The country faces a substantial gas supply deficit. Daily demand is estimated at around 3,800 mmcfd, against a supply of approximately 2,700 mmcfd from domestic production and imported LNG.
The new terminal is expected to help diversify LNG import infrastructure, improve energy security and reduce the risk of gas supply disruptions when existing facilities face technical problems.
The Chinese company has proposed bringing the terminal into operation by 2028, although further implementation details are yet to be finalised.
