China CNEE Approved to Build Bangladesh's Third Floating LNG Receiving Terminal

en.Wedoany.com Reported - On November 12, Bangladesh's Cabinet Committee on Government Purchase approved the proposal submitted by China National Energy Engineering and Construction Co., Ltd. (CNEE) to build the country's third floating liquefied natural gas (LNG) receiving terminal. The project is proposed to be located in the Kutubjom sea area off Moheshkhali Island in Cox's Bazar District, employing a floating storage and regasification unit (FSRU) with a standard regasification capacity of 600 million cubic feet per day and a peak capacity of 750 million cubic feet per day. According to the company's latest plan, the project is scheduled to commence operations in 2028.

The project will be implemented through an intergovernmental cooperation arrangement. The plan approved by Bangladesh's Cabinet Committee on Government Purchase includes two service term options: a 15-year term with an estimated payment of 123.24 billion taka (approximately USD 988 million), and a 20-year term with an estimated payment of 131.61 billion taka (approximately USD 1.055 billion). These two amounts correspond to government payment arrangements under different terms and should not be regarded as independent construction investment that has already been committed.

The proposed FSRU will receive LNG delivered by LNG carriers, complete storage and regasification on the floating facility, and then deliver the natural gas to Bangladesh's national gas pipeline network. Available information shows that the CNEE plan has a standard processing capacity of 600 million cubic feet per day, with peak capacity reaching up to 750 million cubic feet per day. Once the terminal is operational, Bangladesh's two existing floating receiving terminals, with a combined regasification capacity of approximately 1,100 million cubic feet per day, will be increased to 1,700 million cubic feet per day under standard conditions, with peak capacity reaching 1,850 million cubic feet per day.

Bangladesh's two existing floating LNG receiving terminals are both located on Moheshkhali Island, operated by Excelerate Energy of the United States and Summit LNG of Bangladesh, with standard regasification capacities of 600 million and 500 million cubic feet per day, respectively. The two facilities handle the country's main imported natural gas receiving tasks; after regasification, LNG enters the domestic gas transmission network to supply power plants, fertilizer plants, and industrial users.

Bangladesh's current daily natural gas demand is approximately 3.8 billion cubic feet, while domestic production and LNG imports together supply about 2.7 billion cubic feet, leaving a daily supply gap of approximately 1.1 billion cubic feet. The new receiving facility will increase imported natural gas receiving and regasification capacity and reduce the impact of maintenance or shutdowns at existing terminals on domestic gas supply.

This approval followed a prior procurement review. CNEE submitted the project proposal on June 19, 2026, and Bangladesh's Economic Affairs Committee granted in-principle approval on July 28 to proceed with the relevant arrangements. In October, the Cabinet Committee on Government Purchase deferred consideration of the proposal for further review of financial terms; it was resubmitted on November 12 and approved. According to CNEE's latest plan, the project's target commissioning time is 2028.