Chinese firm to build floating LNG terminal in Moheshkhali

A Chinese firm is set to construct a floating LNG (liquefied natural gas) terminal at Moheshkhali in Cox's Bazar.

The Cabinet Committee on Economic Affairs today gave in-principle approval to process a proposal submitted by China National Energy Engineering and Construction Company Limited for setting up the LNG storage and regasification terminal under a government-to-government (G2G) arrangement.

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Finance Minister Amir Khosru Mahmud Chowdhury chaired the meeting held at the Secretariat.

According to a Finance Ministry statement, the proposal will be processed under the G2G method in accordance with Section 68 of the Public Procurement Act, 2006, and Rules 99(2) and 107(2) of the Public Procurement Rules, 2025.

At the same meeting, the committee also gave in-principle approval to a proposal for importing LNG on both a short- and long-term basis from US-based Gunvor USA LLC under a G2G framework.

Furthermore, the cabinet body approved a proposal to reduce the deadline for submitting international open tenders for the import of refined petroleum fuel by the Bangladesh Petroleum Corporation from 42 days to 21 days for the September-December 2026 period.

The approval was given at a time when Bangladesh was suffering from a worsening gas crisis, which is raising operating costs and threatening the country’s export competitiveness.

Gas-dependent sectors, including textiles, spinning, ceramics and fertilisers, are operating below capacity or facing production delays due to low gas supply and weak pipeline pressure, brought on by the shutdown of one of the two floating storage and regasification units on July 21 due to a technical fault.

The shutdown has curtailed the national gas supply by about 450 million cubic feet per day (mmcfd), or 17 percent.