The Bangladesh government has approved plans to rapidly develop a new Floating Storage and Regasification Unit (FSRU) at Kutubjom in Maheshkhali, Cox’s Bazar, as the country faces a dire natural gas shortage following a fire at an existing terminal.
The decision was made at a meeting of the Cabinet Committee on Economic Affairs at the Finance Ministry on Tuesday, chaired by Finance Minister Amir Khosru Mahmud Chowdhury. The committee approved a proposal from the Energy and Mineral Resources Division to process an offer from a Chinese company, China National Energy Engineering & Construction Co. Ltd (CNEE), under a government-to-government agreement.
This approval is the first official step towards building another LNG import terminal at Maheshkhali. Government officials said the project became urgent after a recent fire at one of the country’s working terminals reduced gas supplies, forcing state company Petrobangla to cut gas to factories, power plants, fertilizer units, and homes.
Bangladesh relies heavily on imported liquefied natural gas (LNG) to make up for falling domestic gas production. The imported liquid gas is converted back into gas at floating terminals before being pumped into the national grid. The recent fire showed how risky it is to depend on only a few terminals without back-up options.
According to official numbers, Bangladesh needs about 3,800 million cubic feet of gas per day (MMCFD), but supply has dropped to around 2,700 MMCFD, leaving a gap of about 1,100 MMCFD. This shortfall has hit industrial output, electricity generation, and household supplies.
Business leaders, especially in the garment and textile sectors, have repeatedly asked the government to restore normal gas flow, warning that low pipeline pressure has forced many factories to run far below their normal capacity.
The proposed Kutubjom terminal aims to increase the country’s gas import capacity and make the supply system safer if another terminal breaks down. Bangladesh first started importing LNG in 2018 through its first floating terminal at Maheshkhali.
While the full technical details, costs, and project timeline have not yet been announced, officials hope the new Kutubjom terminal will help create a more reliable energy supply for the country.
