The government of Bangladesh has announced its plan to seek fresh overseas proposals for establishing its first Floating Storage Regasification Unit (FSRU) under a Government to Government (G2G) method. The terminal is planned to be built at Maheshkhali to address the country’s increasing demand for imported liquefied natural gas (LNG).
Government to Government Method
Petrobangla Chairman Abdul Mannan informed that the government has sought proposals from different overseas state-owned companies for building the first FSRU under a G2G arrangement. This move aims to secure a steady supply of LNG at competitive international prices.
Previous Proposals and MoU
Earlier proposals were sought for the terminal under the G2G method, and the State Oil Company of Azerbaijan (SOCAR) had sent a proposal. An MoU was signed with the interim government on November 7, 2025. According to the MoU, SOCAR expressed interest in supplying 0.5 million to 1.5 million tonnes of LNG per year for five to fifteen years.
Current LNG Situation in Bangladesh
Bangladesh started importing LNG in 2018 due to dwindling domestic gas reserves and increasing demand. Currently, there are two FSRUs in the country operated by private companies—one by Summit Group and the other by US Company Excelerate Energy. These terminals have a combined capacity of around 1,100 mmcfd (million cubic feet per day).
Domestic Gas Production
Petrobangla reports that domestic gas fields, which once produced about 2,800 mmcfd, now produce only 1,627 mmcfd. The government is supplying around 2,700 mmcfd against a demand of 3,800 mmcfd. The shortfall is being addressed through LNG imports.
Future Prospects and Expert Opinion
According to an energy expert, it will take at least 24 months to set up a floating LNG terminal. The new FSRU under the G2G method is expected to significantly contribute to meeting Bangladesh’s energy needs and reducing the dependency on domestic gas reserves.
