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The government plans to establish three more floating LNG terminals by 2029 amid a worsening gas crisis following a fire at an existing floating LNG terminal, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku said on Thursday.
He said feasibility studies were underway for potential terminals at Payra, Mongla and Hiron Point, while the government was also seeking investors for the projects.
The minister made the remarks while joining an online discussion organised by the Centre for Policy Dialogue (CPD) titled “Bangladesh’s Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future.”
He said the government had never imagined that a floating storage and regasification unit (FSRU) operating in the deep sea could catch fire.
“The FSRU caught fire. Since the incident, we have been facing this problem,” he said.
The minister said the damage could have been much greater as another LNG carrier was anchored near the terminal. However, it was moved away quickly after the fire broke out.
Bangladesh currently has two FSRUs. One became inoperable after developing a technical problem, creating a shortfall in gas supply. Although the other remains operational, engineers have advised that it will need to be shut down for 72 hours to allow both units to operate together after repairs are completed on the damaged unit.
Warning that the gas shortage could worsen during that period, Tuku said, “At this moment, there is nothing I can do except count the days.”
He, however, assured that steps were being taken to minimise load-shedding and maintain gas supplies to industries.
The government has purchased four LNG cargoes to address the shortage, he said, expressing hope that supplies could be increased quickly once the affected terminal resumes operations.
Tuku said the government had placed an order for a new FSRU over the past six months and was in discussions with investors to establish three more terminals.
“We are studying Payra, Mongla and Hiron Point and inviting investors,” he said.
The minister said the government was targeting completion of the new terminals by 2029. However, he stressed that adding terminals alone would not increase gas supply unless adequate transmission infrastructure was also developed.
He pointed to limitations in the existing gas transmission network between Chattogram and Bakhrabad, saying the capacity to transport additional gas through the existing pipeline would remain limited even after new FSRUs were installed.
To address the issue, the government plans to construct a new subsea gas pipeline to Bakhrabad, he said.
The minister also stressed the need to intensify domestic gas exploration. He said Bangladesh Petroleum Exploration and Production Company (BAPEX) would begin drilling new wells and that orders had been placed to procure two additional rigs for the state-owned company.
To increase gas supplies to industries, the government also plans to transport gas from Bhola in containers. Tuku said a private company had been authorised to transport gas using 30 container trucks.
He added that Bangladesh was discussing the technology and equipment required for containerised gas transportation with Malaysia. Malaysian authorities have said that if the containers are to be supplied to Bangladesh, they would have to be manufactured in China, he said.
The minister expressed hope that the initiative, once operational, would help ease pressure on gas supplies to industries.