The floating storage and regasification unit (FSRU) that offloaded its first LNG cargo in Bangladesh in April, is expected to start operations as a permanent import terminal “within a week”, after inclement weather delayed its start-up, according to Reuters. The FSRU is expected to pave the way for LNG import in a country which sees a constantly falling domestic gas production.
The ‘Excellence FSRU’ is operated by the US company Excelerate, which launched the first FSRU in the world in 2005.
However, since arrival at Moheshkhali, near Cox’s Bazar in southeast Bangladesh, heavy weather has impeded the FSRU’s efforts to dock properly, connect to the import infrastructure and offload its first cargo of Qatari LNG.
As such, two officials from the Bangladeshi state-owned firm Petrobangle told Reuters that the company would contest Excelerate’s declaration of force majeure on the project due to the weather-related delays.
They have claimed force majeure for bad weather but we haven’t accepted it. Petrobangla doesn’t have any obligation to pay any money before the gas flow starts. Excelerate will pay demurrage as per contract.
That official said technical experts from International Finance Corp, an arm of the World Bank which lent to the $180 million project, were on site monitoring progress.
Bangladeshi energy demand has risen over the last years, creating a shift to LNG projects in a bid to cover its energy needs. The Moheshkhali project would help Bangladesh import 81 million cubic metres of gas a day by 2025, said Nasrul Hamid, state minister for power, energy and mineral resources.
Aside from the Moheshkhali project, several others are being considered, usually combining LNG imports with onshore power plants that would use the regasified fuel as feedstock or with fertiliser complexes that are heavily gas-reliant.
