LNG Carrier Arrives in Maheshkhali, Bringing Relief to the Energy Sector

Rafiqul Islam Selim

A ship carrying liquefied natural gas (LNG) docked at the floating terminal in Maheshkhali, Cox’s Bazar, on Wednesday. Another cargo is scheduled to arrive on Friday. Officials of Rupantarita Prakritik Gas Company said that once the cargo arrives, the two Maheshkhali terminals will be able to supply up to 1,100 million cubic feet of gas, bringing gas supply back to normal.

Increased gas supply will allow gas-fired power plants that are currently shut down to resume operations. This is expected to gradually ease both gas and electricity shortages across the country. Industrial production is also expected to return to full operation. Gas supplies to CNG filling stations and households will also increase.
A total of 10 imported LNG cargoes have been scheduled to arrive this month. Petrobangla officials said that if all the cargoes reach the country according to schedule, concerns over gas shortages will ease. Stakeholders expect the government’s initiatives to bring relief to the energy sector. Energy officials hope that if the 10 scheduled LNG cargoes arrive on time, the country’s energy crisis will be resolved and gas and electricity supplies will return to the level before July 21.

The gas crisis began after a mysterious fire broke out on July 21 at the floating LNG terminal operated by US company Excelerate Energy in Maheshkhali. The crisis continued due to delays in restoring the damaged terminal and the late arrival of imported LNG cargoes. The gas and power crisis intensified, causing a sharp decline in industrial production. Households and CNG filling stations also faced severe gas shortages.
However, gas supplies increased from August 22 following the arrival of LNG vessels. Since then, the two terminals have been supplying between 700 million and 750 million cubic feet of gas. With the arrival of the new cargo, supply is expected to rise to 1,100 million cubic feet.

An official of Rupantarita Prakritik Gas Company said LNG is currently being supplied to Summit from the Saudi Aramco vessel Maria Energy. The next cargo will supply LNG to the Excelerate Energy terminal. Following the addition of new LNG, Summit’s gas supply has exceeded 550 million cubic feet. Supply from the Excelerate Energy terminal has now declined to 180 million cubic feet. Once the new cargo arrives on Friday, the terminal will also be able to supply around 550 million cubic feet of gas.

Officials expect the gas shortage to ease once up to 1,100 million cubic feet of gas from the two terminals is added to the national grid. The Liberia-flagged vessel, with a capacity to carry 174,000 cubic meters of LNG, docked at the terminal in the morning. The vessel began its journey from Barrow Island, Australia, in the final week of August carrying an LNG cargo bound for Bangladesh’s Maheshkhali LNG terminal.

Meanwhile, another Saudi Aramco cargo is scheduled to arrive at the terminal on September 10. A POSCO cargo is scheduled for September 13, Gunvor on September 16, another Aramco cargo on September 18, Total on September 23, and another Gunvor cargo on September 28. The process of importing two more cargoes is also underway this month.
Petrobangla has invited tenders for importing additional LNG. Iranian Ambassador to Bangladesh Jalil Rahimi Jahangiri said on Wednesday that there would be no difficulty for LNG carriers bound for Bangladesh to pass through the Strait of Hormuz. He made the remarks while speaking to reporters after meeting Foreign Affairs State Minister Humayun Kabir. Earlier, international media reports had raised concerns that LNG cargo supplies to Bangladesh could be disrupted due to possible restrictions in the Strait of Hormuz.

Although the country’s gas demand has exceeded 3,800 million cubic feet, only around 2,600–2,700 million cubic feet is being supplied. Yesterday, the total supply stood at 2,332 million cubic feet, of which 700 million cubic feet came from the Maheshkhali LNG terminals. Several power plants across the country, including four in Chattogram, remain shut due to gas shortages. As a result, the electricity deficit has also increased. Officials of the Power Division expect the electricity crisis to ease once gas supplies return to normal.

Government Decides to Purchase Four More LNG Cargoes

The government has decided to purchase four additional LNG cargoes to address the ongoing energy crisis. The decision was taken at a meeting of the Cabinet Committee on Government Purchase on Wednesday. Of the four new cargoes, one will be imported from BP Singapore Pte at a price of $28.03 per MMBtu. Another cargo from Aramco Trading Singapore will cost $27.54 per MMBtu, while a cargo from Vitol Asia will cost $26.67 per MMBtu.
The government has also decided to purchase another cargo from Aramco Trading Singapore at a lower price of $23.98 per MMBtu.