Published : 13 Aug 2026, 08:49 PM
Updated : 08 Sep 2026, 09:32 AM
The government has plans to set up three more floating LNG terminals by 2029 as the gas crisis has intensified following a fire at a floating LNG terminal, says Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood.
He said feasibility studies are being conducted to set up terminals at Payra, Mongla and Hiron Point, while the government is also looking for investors.
The minister made the remarks on Thursday while joining an online discussion organised by the private research organisation Centre for Policy Dialogue (CPD), titled “Bangladesh’s Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future.”
He said the government had “never imagined” that a fire would break out at a floating storage and regasification unit, or FSRU, in the deep sea.
“An FSRU caught fire. This problem started after the fire,” he said.
The minister said the damage could have been much greater. Another LNG carrier was anchored beside the terminal, he said, but it was quickly moved away after the fire broke out.
Bangladesh has two FSRUs. The minister said a problem with one of them has caused a shortfall in gas supply. Although the other unit remains operational, engineers have said it will have to be shut down for 72 hours to bring both units into operation after repairs to the faulty one. He warned that the gas crisis could worsen during that period.
“Now there is nothing I can do but count the days,” the minister said.
However, he said that measures were being taken to minimise load shedding and ensure gas supplies to industries.
The government has purchased four LNG cargoes to tackle the gas shortage, the minister said. He hoped that once the terminal becomes operational, the cargoes can be unloaded quickly and supplies increased.
The minister said the government had ordered a new FSRU over the past six months and was in discussions with investors to set up three more terminals.
“We are studying these locations—Payra, then Mongla and Hiron Point—and we are inviting investors,” he said.
The government aims to set up the terminals by 2029, he added.
Iqbal said setting up new terminals alone would not increase gas supplies; transmission lines would also be required.
Highlighting limitations in the gas transmission network from Chattogram to Bakhrabad, he said the capacity to transmit gas through the existing pipelines would remain limited even if new FSRUs were installed.
The government therefore plans to build a new undersea pipeline to carry gas to Bakhrabad, he said.
Focus on Domestic Gas Exploration
The minister also said the government was placing greater emphasis on exploring domestic gas resources.
New wells are being drilled through state-run Bangladesh Petroleum Exploration and Production Company (BAPEX), and orders have been placed to purchase two more rigs for the company, he said.
“If there is no exploration, where will we get gas from?” the minister said.
He also spoke about an initiative to transport gas from Bhola in containers to increase supplies to industries.
A private company has been permitted to transport gas using 30 container trucks, he said, adding that the company was working to deliver Bhola’s gas to industrial users.
The minister said Bangladesh was discussing the technology and equipment needed to transport gas in containers with Malaysia.
Malaysia has said that if it supplies the containers to Bangladesh, they would have to be manufactured in China and brought to Bangladesh, he said.
He expressed hope that the system could ease pressure on industrial gas supplies to some extent.
High Power Demand at Night
The minister also said the pattern of electricity demand was changing.
Previously, electricity demand used to be highest between 7pm and midnight, but demand is now also high after midnight, he said.
Around midnight on Wednesday, electricity demand in the country was about 18,000 megawatts, according to the minister.
He attributed the increase partly to battery-powered rickshaws being charged at night. He referred to the vehicles as “the poor man’s Tesla.”
He said most battery-powered rickshaws are charged at night and claimed that a large portion of the charging takes place through illegal connections.
The minister said electricity department officials often face resistance and attacks when they try to disconnect illegal connections.
“Difficulties of Businesspeople Understandable”
Representatives from the industrial sector told the discussion that production was being disrupted by shortages of gas and electricity, while businesses were also facing higher diesel costs and pressure from bank loans.
In response, the minister said he himself had once been an industrial entrepreneur.
He said he therefore understood the pressure of having to continue paying bank loan interest, workers’ wages and other expenses even when factories remain shut.
“I am one of you. Who understands your difficulties better than I do?” he said.
He noted that bank loan interest does not stop even when a factory is closed, while workers still have to be paid.
The minister said the prime minister had met industrial entrepreneurs three times during the government’s first six months.
He claimed that the government was giving priority to increasing gas and electricity supplies to industries.
“If industries do not operate, where will my industrial and economic growth come from?” he said.
The minister also said the prime minister would present the government’s plans for the power and energy sectors through 2029 before the nation during the next parliamentary session.
No Policy Yet on Private Fuel Imports
The minister also spoke about reports surrounding plans to allow private companies to import refined petroleum products.
He said the government had not handed over the fuel import business to any company and that no policy had yet been formulated on the matter.
“Before the policy has even been made, there are reports that we have given it to this person or that person,” he said.
He said a policy governing private-sector fuel imports, storage, transportation, distribution and marketing would be formulated after consultations with all stakeholders.
