Bangladesh state-run oil and gas company Petrobangla has cancelled an agreement with a consortium of the Malaysian company Petronas and Hong Kong Shanghai Manjala Power for the construction of a 3.75 Mt/year floating storage unit (FSU) and a fixed jetty-based LNG regasification terminal on Kutubdia Island in Cox's Bazar near the country's first operating FSRU at Moheshkhali.
This is the fifth such project cancelled by the country amid a slower than expected gas demand growth and infrastructure constraints. In May 2018, Petrobangla also cancelled talks with the the Swiss trading company Trafigura over the development of a small floating LNG regasification terminal.
Bangladesh's first floating LNG import terminal in Moheshkali arrived on site in April 2018 and started operations in October only, following delays caused by technical problems. It has a capacity of 5.1 bcm/year and a storage capacity of 138,000 m3. It will be operated by Excelerate Energy over a 15-year period on a BOT basis and the ownership will be transferred to Petrobangla afterwards.