Govt withdraws proposal for Chinese firm’s 12,324cr taka LNG terminal at Maheshkhali

A proposal to approve a bid by China National Energy Engineering & Construction Co Ltd (CNEE) to establish a floating storage and regasification unit (FSRU) at Maheshkhali in Cox’s Bazar was withdrawn from the Cabinet Committee on Government Purchase (CCGP) meeting on Wednesday.

The proposed government-to-government (G2G) contract was estimated to cost around 12,324 crore taka over 15 years or 13,161 crore taka over 20 years, according to the official document.

The committee, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, decided to withdraw the proposal at its meeting. However, the available information on the meeting’s decision did not specify the reason for the withdrawal.

The proposed terminal was intended to become Bangladesh’s third floating LNG terminal, expanding the country’s capacity to import liquefied natural gas (LNG) as domestic gas production declines and demand from power plants, industries and other consumers continues to outstrip available supplies.

Bangladesh began importing LNG in 2018 and currently operates two floating terminals at Maheshkhali, run by US-based Excelerate Energy and Summit LNG. Their combined regasification capacity is around 1,100 million cubic feet per day (mmcfd), according to previous reports.

The proposed facility at Kutubjom was designed to have a base regasification capacity of 600 mmcfd and a peak capacity of 750 mmcfd.

CNEE submitted its proposal on June 19, seeking a daily charge of $342,000 under the 15-year arrangement, according to a media report.

The proposed rate was higher than the existing daily charges of $254,000 for Excelerate Energy’s terminal and $249,115 for Summit LNG. The difference raised questions about the financial terms of the proposed project and the justification for the additional cost.

In July, the Cabinet Committee on Economic Affairs gave in-principle approval to process CNEE’s proposal under the G2G procurement method.

The proposal was submitted by the Energy and Mineral Resources Division under Section 68 of the Public Procurement Act, 2006, and Rules 99(2) and 107(2) of the Public Procurement Rules, 2025.