Bangladesh floats tender for third LNG terminal as gas import disruption fuels power cuts

Bangladesh has invited bids for a third liquefied natural gas (LNG) import terminal as the country faces recurring electricity shortages, a minister has said.

Commerce Minister Khandakar Abdul Muktadir announced the plan on Friday while visiting a river dredging project in Sylhet.

He said technical problems had disrupted gas imports, contributing to increased “load shedding” or blackouts.

“Despite sufficient funds, load shedding has increased as gas imports have been disrupted because of some technical problems,” he told reporters.

“The government is working to resolve the problem. Tenders are being invited for the construction of a new terminal to increase LNG import capacity.”

Bangladesh currently operates two floating LNG terminals off Moheshkhali in the Bay of Bengal.

A proposal for a third floating terminal in Cox’s Bazar was approved in 2023 for Summit Oil and Shipping Ltd. The interim government cancelled the approval in October 2024.

Bangladesh has faced periodic power cuts in recent months, alongside complaints of low gas pressure and shortages of bottled gas supplies.

“The government will build new storage facilities on a priority basis so the country does not become hostage to the global situation in the future,” he said.

On the fuel price front, he said: “Even if fuel is imported at a higher price in the international market, its impact will not be felt by the people, the government will manage it properly.”

He also defended recent fuel price rises, saying the impact on inflation would be limited.

He said despite a 15 percent increase in its rate, diesel is still “cheaper” in Bangladesh compared with neighbouring countries.

“This slight increase may have an impact of only 30 paisa per kg on the price of the product, which will not have a major negative impact on inflation,” he argued.

Muktadir, the Sylhet-1 MP, said the government was also seeking to expand fuel storage capacity to improve energy security.

“The government will build new storage facilities on a priority basis so the country does not become hostage to the global situation in the future,” he said, hinting at the Middle East crisis.