Bangladesh Bolsters LNG Imports Amid Domestic Production Slump

The government of Bangladesh is planning to expand its liquefied natural gas (LNG) import capacity in response to declining domestic production and rising costs. A new floating storage and regasification unit (FSRU) will be installed at Moheshkhali, which can supply around 550-600 million cubic feet of gas per day. The project will be implemented through government-to-government procurement with China National Energy Engineering and Construction Co.

The move comes after the recent shutdown of an Excelerate Energy-operated FSRU in Moheshkhali, which disrupted gas supplies to the national grid by around 450 million cubic feet per day. The government is also proceeding with plans for a land-based LNG terminal at Matarbari in Cox's Bazar.

According to Petrobangla data, domestic gas production has dropped 22.1% over five years, while LNG imports have increased from 6.12 billion cubic meters in fiscal 2020-21 to around 8 billion cubic meters in fiscal 2025-26. The cost of LNG imports has risen sharply, with the government providing a subsidy of Tk 14,600 crore in fiscal 2025-26.