Summit’s floating LNG terminal set to resume gas supply in early April

A relief for the country's ongoing gas woes is on the way as Summit Group's floating LNG terminal is expected to resume operations in the first week of April following routine maintenance work.

The terminal, which is tasked with storing, re-gasifying, and distributing imported liquefied natural gas (LNG), departed Singapore aboard a vessel on 27 March after maintenance, said Engineer Shah Alam, general manager of Converted Natural Gas Supply Company Limited (LNG), the entity responsible for operating the terminal.

"It is expected to reach the Bay of Bengal at Maheshkhali by 31 March and become operational in a week," he added.

There are currently two Floating Storage and Regasification Units (FSRUs) in the country, located at Maheshkhali in Cox's Bazar. One is owned by the US-based Excelerate Energy, while the other is owned by the Summit Group.

Summit's FSRU ceased operations for routine maintenance in mid-January right after Excelerate Energy's FSRU resumed operations after maintenance work.

The restart of Summit's terminal is anticipated to nearly double the current level of imported LNG supplies, providing an additional 500 million cubic feet of gas per day (mmcfd).

Currently, LNG is being supplied through US Accelerate Energy's floating terminal, averaging 630 mmcfd.

With the absence of Summit's terminal, the nation has been experiencing a shortfall of around 10% in meeting gas demand.

Engineer Shah Alam said two FSRUs in operation would mitigate the prevailing gas crisis to some extent.

He indicated that the Summit terminal's capacity would remain unchanged at 500 mmcfd, thus the total gas supply capacity would reach 1,100 mmcfd.

According to Petrobangla, the country's gas demand is around 4,000 million cubic feet per day (mmcfd), but the average supply is only 2,700mmcfd.

The government's strategies for LNG procurement encompass both long-term agreements and spot market purchases, ensuring a stable supply unaffected by international price fluctuations. 

Notably, recent efforts have seen significant LNG imports from Qatar and Oman, in addition to purchases from the spot market, primarily from the United States.

Despite progress, logistical challenges persist, as evidenced by delays in unloading LNG from vessels due to limited operational terminals. 

However, stakeholders in the energy sector remain optimistic that the commissioning of both terminals will enhance supply capacity, thereby ameliorating the current situation.

As Bangladesh braces for the upcoming summer and irrigation season, the government reassures uninterrupted power supply, with plans to utilise LNG for power generation and minimise load shedding. 

Additionally, increased gas supply is expected to benefit residents with uninterrupted gas services and facilitate improved industrial operations.