United News of Bangladesh

Gas-rich Qatar on Tuesday agreed to work on technical details for a proposed land-based LNG terminal in Bangladesh and renew a recently expired Memorandum of Understanding (MoU) on LNG supply for Bangladesh. Qatar Minister of State for Energy Affairs Saad bin Sherida Al Kaabi made the promise when he  met Chief Adviser Professor Muhammad Yunus on the sidelines of the Earthna Summit in Doha. “We want to support Bangladesh as much as possible, and we will continue doing that,” Kaabi told the Chief Adviser. Qatar and Bangladesh signed a Sell Purchase Agreement (LNG SPA) in September 2017 for 1.5-2.5 MTPA LNG imports for 15 years in a G2G process with Qatar Gas. Forty cargoes are being imported under this agreement annually. Prof Yunus, Qatar’s Energy Minister explore energy sector collaboration A second LNG SPA was signed in June 2023 for an additional 1.5 MTs of LNG annually for 15 years, with effect from January 2026. An MoU signed regarding the LNG SPA expired in January, prompting Qatari authorities to come up with a renewed pledge. “We will sign the MoU right away,” said the Qatari state minister, who insisted on a long-term partnership between the two countries and said that they were expecting the price of LNG to come down as the country was planning to double their production. “Long-term contracts are always the best solution for supply security,” he said. Chief Adviser Professor Yunus told the Qatari state minister that Bangladesh wants to explore its energy potential with the help of Qatar. “We need your help to reorganize our energy sector,” he said. Energy Adviser Mohammad Fouzul Kabir Khan, who was present during the meeting, said that Bangladesh is planning to build a land-based LNG terminal with pipeline and supply of LNG and deliver R-LNG through construction of a pipeline under an umbrella in Matarbari Cox’s Bazar to upgrade energy infrastructure. He also informed that the country was planning to raise the number of LNG cargoes from Qatar, with the country’s LNG terminals currently able to handle 115 cargoes annually. Peace, stability key to meaningful, sustainable development: Prof Yunus During the meeting, the Qatari state minister said that they were also planning to increase urea fertiliser supply to Bangladesh. Foreign Adviser Md Touhid Hossain, National Security Adviser Khalilur Rahman, BIDA Chairman Ashik Mahmud, SDGs Affairs Principal Coordinator Lamiya Morshed, and Energy Secretary Mohammad Saiful Islam were, among others, present.

The proposed land-based LNG terminal near Matarbari Deep Sea port will now be implemented through public private partnership (PPP).   The Advisers Council Committee on Economic Affairs (ACCEA) at a meeting on Tuesday, made the decision in principle. Finance Adviser Dr Salehuddin Ahmed, who is now in the USA on an official trip, presided over the meeting virtually. Officials at the Energy and Mineral Resources Division said the planned land-based terminal-development project was undertaken to ensure the country's stable liquefied natural gas (LNG) import and re-gasification. State-owned Rupantorito Prakritik Gas Company Ltd (RPGCL), a wholly owned subsidiary of Bangladesh Oil, Gas & Mineral Corporation—Petrobangla, took up the project few years ago and moved to implement it through an unsolicited process.  Earlier, as per directive of the Energy and Mineral Resources Division the RPGCL cancelled a short-listing process in this regard. Matarbari Port to open new horizon for global trade: Adviser Sakhawat The 1,000 million cubic feet per day (mmcfd)-capacity land LNG terminal at Matarbari in Cox's Bazar was processed under the recently repealed “Speedy Increase of Power and Energy Supply Act (Special provision-2010)”, as revised in 2021. The defunct law had allowed the implementing agency to award any contract without a competitive tender process. Such practice drew huge criticism on transparency issues from the business circles.  As a result, immediately after assuming office the interim government repealed the Speedy Increase of Power and Energy Supply Act (Special provision-2010)” and cancelled all projects pending under the law. Bangladesh has two Floating Storage and Re-gasification Units (FSRUs) at Moheshkhali in Cox's Bazar. These terminals are operated by Excelerate Energy and the Summit Group. Once the new land-based LNG terminal is implemented, it will be first of its kind, said the officials.  

Gas supply is expected to improve from Saturday evening in Dhaka city and elsewhere as a floating LNG Terminal resumed operation from 7 am on Saturday after three days of suspension. “We hope, gas supply situation will improve by this evening”, Eng Md Rafiqul Islam, Director (Operation & Mines) told UNB. He said the resumption of supply from the LNG terminal will increase gas supply by 210 million cubic feet per day (mmcfd). He said the country’s two LNG terminals will together supply 780 mmcfd against their capacity of 1100 mmcfd. “It means there is still shortage of 320 mmcfd,” he said adding that the nagging gas crisis will not be fully resolved soon. Gas supply to be low countrywide for 72 hours from Wednesday A top official of Petrobangla said that the two LNG terminals need at least 10 cargoes for the month of January but so far 7 cargoes are confirmed for supply. The consumers in Dhaka city and elsewhere have been experiencing acute gas crisis for last several months. But situation severely deteriorated from Wednesday last when one LNG Terminal, operated by Excelerate Energy, went on repair and maintenance work. Petrobangla in a press release had said that countrywide low pressure will prevail in gas supply for 72 hours (3 days) from January 1 to January 4 due to suspension of operation of a LNG station, known as floating storage and re-gasification unit (FSRU). Currently, the country has two FSRUs which supply about 1000-1100 million cubic feet of gas per day (MMCFD) of the total gas production of 2900 MMCFD. Meanwhile, consumers in many areas in the city alleged that they are not getting gas to cook. Gas supply to halt for 11 hours Wednesday in parts of Dhaka city Abdur Rahman, a resident of Rayerbazar area, said,” We suffer all the year round due to short supply of gas but the situation turned worse in the last three days. Now we have to buy food as we have no gas to cook.” Aysha Chowdhury, a resident of Malinagh area and Jahanara of Shantinagar area also expressed anger for the suffering they have been enduring for the last of days for poor supply of gas.

Gas supply to Chattagram and elsewhere has started to improve after a floating LNG terminal in Moheshkhali resumed production after its 45-day scheduled maintenance programme. “Excelerate Energy’s FSRU started production after scheduled maintenance today. Now it has been supplying 230 million cubic feet of gas per day (mmcfd) and hopefully the supply will reach 500 mmcfd soon,” said a top official of the Rupantarita Prakritik Gas Company Limited (RPGCL). The RPGCL, a subsidiary of state-owned Petrobangla, has been responsible to import LNG from abroad and receive re-gasification service from the existing two LNG terminals in Moheshkhali, one set up by Summit Group and another by US-based Excelerate Energy. Each LNG terminal has a capacity to supply 500 mmcfd gas to the national gas network from which a major portion is supplied to Chattagram . Read: Energy Division regrets inconvenience from gas crisis in Chattagram, elsewhere The Excelerate Energy’s FSRU went on a 45-day maintenance programme suspending supply of gas to the national gas grid while the Summit’s FSRU experienced a technical fault halting gas supply to the national gas network, leading to a severe gas crisis in Chattagram and elsewhere. Many areas in Dhaka, Narayanganj and Gazipur experienced extreme gas crises or low pressure problems. The RPGCL official, however, informed that Summit’s FSRU also resumed production to a very low scale and it is providing a supply of 130 mmcfd against its capacity of 500 mmcfd. He noted that the gas shortage problem is unlikely to be fully resolved as the Summit’s FSRU also has a schedule to start maintenance programme within 3-4 days. Read: Uninterrupted gas supply by 2026 : Nasrul Hamid outlines energy plans “We think the situation will improve to some extent, but not fully”, he told UNB. The Energy Division on Friday expressed regrets for the inconvenience caused to consumers over the gas crisis in Chattogram and elsewhere in the country due to the suspension of the LNG supply from FSRU in Moheshkhali following a technical fault there. In a press release, the Energy and Mineral Resources Division said that due to a technical fault at a Moheshkhali LNG FSRU, gas supply to Chattogram and other areas of the country remained suspended since early morning on Friday. Read more: Acute gas crisis hits Chattogram city residents hard

Full scale gas supply from one of the Maheshkhali floating LNG terminals, which remained off from May 11 due to the impact of cyclonic storm Mocha, resumed on Saturday. Aslam Alam, public relations officer (information officer) of Power, Energy and Mineral Resources Ministry, said the operation of one of the floating LNG terminal in Mahishkhali of Cox’s Bazar district resumed on Saturday night. Earlier, the gas supply from the two LNG terminals in Maheshkhali remained suspended due to the impact of Cyclone Mocha from May 11. On May 16, the authorities resumed the operation of one the floating LNG terminals. Also read: Gas supply from two floating LNG terminals to remain off due to cyclone With the resumption of gas supply from the second floating LNG terminal, some 800 million cubic feet of gas (mmcfd) is being added to the national pipeline from the two LNG terminals. People of the country, especially the residents of Chattogram, faced frequent load shedding for several days due to the suspension of the gas supply from two LNG terminals. Production in many factories also remained suspended due to the lack of gas supply. END/UNB/Corr/MAS/SH /FH

State-owned Petrobangla has moved to set up three more liquefied natural gas (LNG) terminals in addition to the existing two currently being operated to regasify imported gas. The proposed three new LNG terminals will be set up in Payra, Moheshkhali and Matarbari whose total regasification capacity would be 2000-3000 MMcf/d, said Petrobangla Chairman Zanendra Nath Sarker. Sarker informed that of the three LNG terminals to be set up, two will be floating – known as floating storage and regasification unit (FSRU), while one will be land-based terminal. Read More: Govt resumes importing LNG from int'l spot market According to official sources, all three LNG terminals will be set up on the basis of unsolicited offers received from local and foreign companies. Two floating storage and regasification units have been in operation since 2018, of which one was set up by Excelerate Energy of USA at Moheshkhali of Cox’s Bazar with 500 million cubic feet per day while another with the same capacity was set up by the Summit Group in the same area. Of the three terminals to be set up, Excelerate Energy has made an offer for the Payra site while Summit Group made an offer for Moheshkhali. Petrobangla has shortlisted 12 firms for the Matarbari site. Read More: Risky way of supplying gas in cylinders: Petrobangla body for strong safety rules Each of the FSRUs in Payra and Moheshkhali will have the capacity to regasify 500-1000 MMcf/d gas. “Negotiations are progressing fast… We have prepared the term sheet agreement for Payra and Moheshkhali terminals and sent those to the concerned ministry for approval,” the Petrobangla chairman said recently. For the Matarbarti land-based terminal, Petrobangla is waiting to receive a no-objection certificate from Bangladesh Power Development Board (BPDB) which is the original owner of the land. Read More: No additional LNG supply from Qatar before 2025: Petrobangla “Once we receive the NOC, our team and consultant are ready to select the firm for the Matarbari terminal,” Sarker said, adding that there will be options to increase the capacity of Matarbari land-based terminal from its initial capacity. He, however, said that if the government gives approval for setting up the terminals now, it will take 3-5 years to get them installed and ready for operation. He also justified Petrobangla’s move to setting up the new LNG terminals, saying that the country’s demand for gas supply is growing rapidly and it will reach 6500 MMcf/d by 2030 from the current demand of 4,000 MMcf/d against a supply of 3,000 MMcf/d. Read More: Petrobangla starts drilling in Shahbazpur Gas Field If the moves are not undertaken, the country will experience more deficit in gas supply, the Petrobangla chairman said.