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Bangladesh resolves FSRU issues and will resume LNG imports shortly

Bangladesh expects to resume LNG imports shortly after solving issues with its sole floating storage and regasification (FSRU) unit in Moheshkhali (Cox’s Bazar), in the bay of Bengal in southeast Bangladesh. Several cargoes that were previously cancelled have been scheduled for delivery. The terminal was closed due to problems with a hydraulic line that operates an emergency shutdown valve.



Bangladesh has been experiencing several months of delay with the unit, was initially slated for startup in May 2018 but has been delayed until August 2018. The Chittagong FSRU (in Moheshkhali) currently has a capacity of 5.1 bcm/year and a storage capacity of 138 000 m3. It is operated by Excelerate Energy over a 15-year period on a BOT basis and the ownership will be transferred to Petrobangla afterwards. Bangladesh has signed an MoU with Qatar to import 5.4 bcm/year of LNG worth US$1.56bn/year. LNG imports from Qatar started on a regular basis in September 2018.



Besides, several LNG import terminal projects were cancelled in the last months amid a slower than expected gas demand growth and infrastructure constraints.

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