Bangladesh Fast-Tracks New LNG Terminal Amid Severe Gas Shortage

The Bangladesh government has approved a plan to fast-track the installation of a new Floating Storage and Regasification Unit (FSRU) at Kutubjom in Maheshkhali, Cox's Bazar, as it seeks to address an acute natural gas shortage. The Cabinet Committee on Economic Affairs, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, cleared a proposal submitted by China's China National Energy Engineering & Construction Co. Ltd (CNEE) for the development of the Kutubjom FSRU under a government-to-government (G2G) arrangement.

The move is aimed at reducing Bangladesh's dependence on imported liquefied natural gas and increasing regasification capacity after a fire at an existing LNG terminal significantly reduced gas supplies. The country currently relies heavily on imported LNG, which is regasified through floating terminals before being injected into the national transmission network.

According to official estimates, Bangladesh's daily gas demand stands at around 3,800 million cubic feet (MMCFD), while supply has fallen to roughly 2,700 MMCFD, leaving a deficit of about 1,100 MMCFD. The shortage has affected industrial production, electricity generation, and household consumers across the country.

The proposed Kutubjom FSRU is expected to enhance the resilience of Bangladesh's gas supply system by diversifying import infrastructure and reducing the impact of unexpected disruptions at individual terminals.