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Co Ltd (CNEE) to establish a floating storage and regasification unit (FSRU) at Maheshkhali in Cox’s Bazar was withdrawn from the Cabinet Committee on Government Purchase (CCGP) meeting on Wednesday.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 government-to-government (G2G) arrangement of the proposed contract was estimated to cost around Tk12,324 crore over 15 years or Tk13,161 crore 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.
The withdrawal means the proposed bid has not received the committee’s approval. However, no specific reason for the withdrawal was stated in the information available on the meeting’s decision.
The proposed terminal is intended to become Bangladesh’s third FSRU, 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 exceed available supplies.
Bangladesh began importing LNG in 2018 and currently relies on two floating terminals at Maheshkhali, operated 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 Kutubjom facility was planned with a base regasification capacity of 600 mmcfd and a peak capacity of 750 mmcfd. CNEE submitted its proposal on June 19, with a proposed daily charge of US$ 342,000 under the 15-year arrangement, according to a media report.
The proposed daily charge was higher than the existing rates 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 approval in principle 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.
