Govt plans three more FSRUs by 2029 to ease energy crisis: Minister

The government plans to install three more floating storage and regasification units (FSRUs) by 2029 to strengthen Bangladesh's liquefied natural gas (LNG) import infrastructure and reduce the impact of disruptions at existing terminals, Power, Energy, and Mineral Resources Minister Iqbal Hassan Mahmood said today (13 August).

He said the government has already placed an order for one FSRU and is looking for investors for three additional terminals.

"We have decided that by 2029 Bangladesh will have three more FSRUs," he said, adding that the government is studying potential locations at Payra, Mongla, and Hiron Point in the country's southern region.

The minister made the remarks while addressing a programme, titled "Navigating Bangladesh's Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future", organised by the Centre for Policy Dialogue (CPD), at BRAC Centre Inn in Dhaka.

Bangladesh currently operates two FSRUs, both situated off Moheshkhali, boasting a combined regasification capacity of around 1,100 million cubic feet per day (mmcfd).

In addition to government initiatives, a US delegation recently expressed interest in investing in FSRU development, and authorities have requested formal proposals to expedite project implementation.

Impact of FSRU fire and industrial suffering

Addressing the ongoing energy crunch, Iqbal acknowledged that industries are suffering severely from gas and electricity shortages, noting the immense financial pressure businesses face when factories remain idle while loan interest accumulates.

Apologising to industrialists for the current disruption, he explained that the recent fire at Excelerate Energy's FSRU was unexpected. He noted that swift action by an LNG carrier that managed to move away prevented a far greater catastrophe.

Engineers from Britain and Singapore are currently working on the damaged facility to provide repair timelines. Once repairs are completed, two boilers will require a 72-hour synchronisation shutdown, which could temporarily impact gas supplies further.

Despite the terminal disruption, the minister emphasised that procurement has not stopped. "We bought four cargoes yesterday [12 August] so that once the FSRU is ready, these cargoes can arrive immediately," he said, adding that replacement cables were delivered to the site within 24 hours of arrival to bypass customs delays.

Expanding domestic exploration and infrastructure

To build a more resilient energy framework, Iqbal stated that the government is accelerating domestic gas exploration. State-owned Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) has been instructed to ramp up drilling, with two additional rigs ordered to boost capacity.

However, he cautioned that successful exploration cannot guarantee immediate gas availability, meaning Bangladesh will maintain its reliance on LNG imports.

He further noted that expanding FSRU capacity requires matching pipeline infrastructure. The government is planning a new gas pipeline connecting to Moheshkhali under a government-to-government arrangement to overcome limitations in the existing network from Chattogram to the southern region.

Policy on fuel oil imports

Turning to fuel distribution, the energy minister outlined a proposed policy to allow qualified private companies to import a portion of the country's fuel oil, aiming to reduce single-buyer dependency on the Bangladesh Petroleum Corporation (BPC).

Dismissing speculation that the framework would favour specific entities, he stressed that public-private market efficiency, energy security, and transparency will guide the policy.

"We will sit with every stakeholder, take their suggestions and formulate a policy on how the public-private fuel market can operate efficiently," he said.