Bangladesh Approves New FSRU Amid Ongoing Gas Shortage

The Bangladesh government has given approval to a Chinese company to build a new floating storage and regasification unit (FSRU) in Maheshkhali, Cox's Bazar. The move comes as the country struggles with a gas shortage due to disruptions at existing terminals.

The Cabinet Committee on Economic Affairs approved the proposal from China National Energy Engineering & Construction Co Ltd (CNEE) for the new FSRU at Kutubjom in Maheshkhali. This is the third FSRU to be built in Bangladesh, and it will be processed under a government-to-government framework.

The decision was taken on an urgent basis to address the acute gas shortage, which has worsened following a recent fire and technical failure at the American company-operated Maheshkhali LNG terminal. This incident effectively halved the country's imported LNG-supply capabilities overnight.