Photo : Messenger
Summit owns a floating storage and regasification unit (FSRU) capable of handling 600 million cubic feet per day (mmcfd), but it has yet to begin operations due to a shortage of gas supply to power plants. As a result, the country is experiencing load shedding for an average of 10 to 12 hours.
According to Summit officials, the floating LNG-regasification unit has arrived in Moheshkhali after undergoing maintenance for the past two and a half months.
Mohsena Hassan, Assistant General Manager of Public Relations, informed the Daily Messenger, "We are prepared to commence operations. The FSRU can begin regasification at any time."
Despite the initial plan for the FSRU to commence operations on April 3, the unit has yet to be commissioned, resulting in a shortfall of 600mmcfd of gas supply to the national grid. The Power Development Board (PDB) reported load shedding of 1,235MW as of April 3, but experts argue that the actual load shedding may exceed 2,000MW.
According to approvals, Summit Oil & Shipping Co Ltd, a subsidiary of the Summit Group, is set to sign a 15-year Terminal Use Agreement (TUA) and Implementation Agreement (IA) to establish an LNG terminal with a capacity of handling 600 million cubic feet per day (MMCFD). This terminal will provide LNG regasification services for a fee of $300,000.
This marks the establishment of the third LNG terminal in the country, alongside the two existing terminals. One of these terminals was set up by Excelerate Energy of the United States in Moheshkhali of Cox's Bazar, with a capacity of 500 mmcfd.
The government approved the Floating Storage and Regasification Unit (FSRU) on December 6, 2023, under a 15-year agreement with a capacity of 600mmcfd. The FSRU underwent maintenance in Singapore and has since arrived at its designated location. However, it has yet to be commissioned, despite its scheduled operation date of April 3.
According to Petrobangla, the current demand for gas stands at 3,000 mmcfd, but Petrobangla can only supply 2,300 mmcfd domestically, with the rest being sourced from imports.
Senior Secretary of the Power Division, Md. Habibur Rahman, emphasised the need to increase the supply of furnace oil and diesel to boost electricity generation. He stated to the Daily Messenger, "Not only LNG, but we also need to increase the supply of furnace oil and diesel to enhance generation."
With the onset of Ramadan, the gas shortage in Dhaka and its surrounding areas has intensified, as the supply of Liquefied Natural Gas (LNG) to the grid has decreased.
As a consequence, the country is facing a significant deficit of approximately 1000 million cubic feet per day (MMCFD) of gas to meet the demand of 4000 MMCFD.
Recently, Petrobangla has entered into two new agreements with Qatar and Oman to procure additional LNG supply starting from 2026, supplementing the existing agreements with these nations. Additionally, Petrobangla has signed a new 15-year agreement with Excelerate Energy to import additional LNG starting from 2026. These endeavors aim to address the growing demand for LNG and alleviate the gas shortage in the country.
Messenger/Disha
