US-based Excelerate Energy is planning to increase its Floating Storage and Regasification Unit (FSRU) capacity in Bangladesh by around 26% to 630 MMcf (one million cubic feet) per day by early 2023, replacing the existing FSRU with a new one.
It has already sent a proposal to the energy and mineral resources ministry and state-run Petrobangla in this regard, Excelerate Bangladesh Country Manager Habib Bhuiyan told The Business Standard.
"We have a relatively newer FSRU with 26% higher regasification capacity and are eying to replace the existing one. So, we have proposed to the government to increase the FSRU capacity to meet mounting natural gas demand across the country," Habib Bhuiyan added.
Currently, Excelerate's operational FSRU at Maheshkhali Island in the Bay of Bengal can regasify 500 MMcf gas per day.
As per the contract obligation, the existing FSRU at Moheskhali has to be sent to a dry dock after five years of its commissioning. So, the company has to replace the FSRU in 2023 as it was installed in August 2018.
Confirming the development, Anisur Rahman, senior secretary to the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources, said, "At the time of replacement, Excelerate has planned to bring an FSRU with higher capacity. It has already sent a proposal to the ministry and Petrobangla in this ground."
"We will discuss the issue with them. For that, we might have to revise the existing contract too," said Anisur Rahman.
Aside from Excelerate's FSRU, there is another regasification facility with 500 MMcf per day owned by Summit Group.
With these two units, Bangladesh regasifies around 850 MMcf of imported LNG per day. However, the country has a plan to increase imports up to 4,000 MMcf per day by 2030, as per a Petrobangla projection.