$1 Billion Offshore LNG Deal Sparks Bangladesh Energy Crisis

The Bangladesh energy sector is on the brink of disaster due to a contentious $1 billion offshore LNG deal. The proposed Third LNG Terminal, to be built by China National Energy Engineering and Construction Company (CNEE), will come with a steep 36% hike in service charges compared to existing operations.

A seven-member government feasibility committee, chaired by Petrobangla Chairman Md. Abdul Mannan, has been unable to justify the exorbitant cost. The push for this expensive project is driven by high political lobbying fees and profit-sharing schemes among influential government figures.

Industry sources claim an artificial gas crisis was intentionally engineered to force high-cost spot-market LNG purchases. Instead of utilizing the full capacity of the nation's two existing FSRUs, authorities are prioritizing this costly new installation to extract massive financial gains.

The seeds of the present shortage trace back to the political regime change on August 5, 2024. Following the shift, the interim government led by Muhammad Yunus cancelled Summit Group's proposal and handed control of both regasification-capable FSRUs over to the US-based Excelerate Energy, a move widely seen as a geopolitical reward to former US diplomats.

The concentration of operations under Excelerate Energy has severely heightened Bangladesh's energy vulnerability. Following a major accident on July 21, 2026, Excelerate's FSRU went offline, instantly wiping out half of the total LNG supply to the national grid.