Novatek Floats Offshore LNG Terminal Proposal for Bangladesh

Russian energy company Novatek has proposed building a $950 million seabed-fixed liquefied natural gas (LNG) terminal in Bangladesh, aiming to provide an alternative to the country's existing land-based LNG terminals.

The proposed facility would be built in the Bay of Bengal and would have a regasification capacity of 7.5 million tonnes per annum (MTPA), with the option to expand to larger volumes. According to Novatek, building an offshore terminal would be cheaper than constructing a conventional land-based LNG terminal, with estimated savings of $250 million, or 21 percent.

The main difference between this proposal and existing LNG terminals is that it would place the storage and regasification facilities on a reinforced-concrete structure fixed to the seabed, rather than keeping them onshore. This approach has been used for Novatek's Arctic LNG 2 project in Russia and is claimed to offer greater weather resilience.

The proposal also includes plans for a 'virtual pipeline' system, where small vessels would transport LNG from the offshore terminal to riverbank facilities near major cities. The goal is to supply gas to areas outside of the main pipeline network. Additionally, Novatek envisions the terminal becoming a regional LNG transhipment and bunkering hub.