Faulty LNG terminal to be shut again to restore full capacity: State Minister

The floating LNG terminal operated by Excelerate Energy in Maheshkhali, Cox's Bazar, will need to be temporarily shut down again to restore it to full capacity, said State Minister for Power, Energy and Mineral Resources Anindya Islam Amit. Discussions are underway with the operator to determine the timing that would cause minimal disruption to industry, power and other consumers, he said.

Gas supply from the terminal to the national grid dropped by approximately 45 crore cubic feet per day in late July due to a technical fault. A part of the terminal was partially restarted on Thursday after nearly two weeks. However, to fully recommission the other unit, the currently operational part must also be shut down for some time.

Speaking at an event in Dhaka on Tuesday, the state minister said the terminal's operations have been partially restored with the assistance of domestic and international experts. The government's goal is now to bring the entire terminal back to its previous capacity. The shutdown period is being chosen to minimise public inconvenience.

At a seminar titled 'Energy Sector Crisis: Prospects and Way Forward' organised by the Forum for Energy Reporters Bangladesh, the state minister said the problem at one LNG terminal has created a major gas supply crisis across the country. He noted that alternative infrastructure is needed to handle such situations.

A foreign private investor group has shown interest in setting up a large-scale new LNG terminal in the country, said Anindya Islam Amit, though he did not name the company. The group has held meetings with the government and expressed interest. The government has requested a formal proposal, which will be evaluated before any decision is made.

Regarding a new floating LNG terminal project, the state minister said no specific company's project has been approved directly. The government has decided to implement the project either at the government level or through a government-to-government (G2G) basis. Interested companies are being shortlisted after evaluation. Detailed proposals will be followed by negotiations and, if satisfactory, a contract.

The state minister stressed the need to increase domestic gas production for a permanent solution to the current energy crisis. He said importing more LNG alone will not provide a lasting solution; the crisis will persist unless domestic production is increased.

The government has floated new tenders for oil and gas exploration at sea, with the submission deadline in November. The government expects international oil and gas companies to show interest in Bangladesh's offshore blocks. Preparations are also underway to invite tenders for new onshore oil and gas exploration.