Bangladesh Considers Offshore LNG Terminal as Alternative to Conventional Land-Based Facility

A Russian energy company has proposed building an offshore LNG terminal in Bangladesh's Bay of Bengal. Novatek Middle East estimates that the project, which would be a fixed seabed structure, would cost around $950 million and have a lifespan of 60 to 80 years.

This is significantly cheaper than a conventional land-based terminal, according to Novatek's own estimates, with costs estimated at around $1.2 billion. The company also claims that the offshore structure could withstand severe weather conditions, including cyclones, better than floating storage and regasification units (FSRUs).

The proposal includes two designs for the GBS: a larger one with 290,000 cubic meters of LNG storage capacity, and a smaller one with 194,000 cubic meters. Both would have 7.5 million tonnes per annum of regasification capacity, as well as 1 million tonnes per annum of LNG bunkering capacity and 42 megawatts of captive power generation capacity.

Novatek also plans to use the facility as a regional hub for exporting LNG to neighboring countries. The company estimates that the project could be completed in 30-36 months, although no formal proposal has been submitted yet.