Consequent to Bangladesh cutting down on import of Liquefied Natural Gas (LNG) due to price volatility, almost half of the country’s floating storage and re-gasification units (FSRUs) of LNG has remained unused even if a report of the Institute for Energy Economics and Financial Analysis (IEEFA) has underlined fuel supply insecurity may cause new import terminals to go unused and potentially cost billions of dollars in stranded assets.
Reports maintained this while adding the USA-based organisation has stated as long as unaffordable LNG prices and procurement challenges continue, proposed LNG-related infrastructure projects in countries like Bangladesh, Vietnam, Pakistan and Philippines, will face heightened risk of cancellation or underutilisation.
It may be mentioned here, Bangladesh plans to build a third FSRU at a land-based terminal in Maheshkhali and Payra in Patuakhali but, due to the price volatility, authorities are confused if they should build more LNG capacity or not even if the two FSRUs at Maheshkhali of Cox’s Bazar, which have a capacity to inject 1,000 mmcf gas to the national gas transmission grid per day are now injecting only 553 mmcf.
