The launch of the facility came 25 months after the execution of project agreements, which occurred in July 2016, with the state-owned Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) and 13 months after receiving all the permits needed to achieve financial close in August 2017.
The LNG terminal is located off Moheshkhali Island in the Bay of Bengal, and has started delivering natural gas to the Chittagong region of Bangladesh. LNG will be procured from international natural gas markets and is expected to increase natural supply to the country by 20%.
Moheshkhali LNG is a project that will create a new market for energy supplies into the country and aims to diversify fuel sources and secure additional natural gas to address power shortages in the country.
The MLNG terminal began its development with the Government of Bangladesh in 2012 which, at that time, was trying to find reliable gas import infrastructure solutions that could support the demanding operational conditions of the Bay of Bengal.