In a promising development to alleviate Bangladesh's gas shortage, Summit Group's floating LNG terminal is set to recommence operations in the first week of April after undergoing routine maintenance.
Engineer Shah Alam, the general manager of Converted Natural Gas Supply Company Limited (LNG), responsible for operating the terminal, announced that the facility, which stores, re-gasifies, and distributes imported liquefied natural gas (LNG), is expected to arrive at the Bay of Bengal in Maheshkhali by March 31st. It will become operational within a week thereafter.
Summit's floating terminal, having ceased operations for maintenance in mid-January, is poised to nearly double the current level of imported LNG supplies by providing an additional 500 million cubic feet of gas per day (mmcfd). Currently, LNG is supplied through the US-based Excelerate Energy's floating terminal, averaging 630 mmcfd.
With both Summit's and Excelerate Energy's terminals operational, the nation anticipates mitigating the prevailing gas crisis to some extent. Shah Alam emphasized that Summit's terminal would maintain its capacity at 500 mmcfd, resulting in a combined gas supply capacity of 1,100 mmcfd.
Bangladesh, with a gas demand of around 4,000 million cubic feet per day (mmcfd), faces an average supply of only 2,700 mmcfd. To address this deficit, the government has pursued LNG procurement through long-term agreements and spot market purchases, aiming to ensure stable supply despite international price fluctuations.
Recent efforts have seen substantial LNG imports from Qatar and Oman, alongside purchases from the spot market, notably from the United States. While logistical challenges persist, stakeholders remain optimistic that the commissioning of both terminals will enhance supply capacity, easing the current situation.
As Bangladesh prepares for the upcoming summer and irrigation season, uninterrupted power supply is assured, with plans to utilize LNG for power generation and minimize load shedding. Moreover, increased gas supply is expected to enhance residential gas services and facilitate improved industrial operations.
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