Dhaka, October 14, 2026: A proposal to approve China National Energy Engineering & Construction Co Ltd (CNEE) for developing a floating storage and regasification unit (FSRU) at Maheshkhali in Cox’s Bazar was withdrawn from the Cabinet Committee on Government Purchase (CCGP) meeting on Wednesday. Report UNB
The proposed government-to-government (G2G) contract was estimated to cost Tk 12,324 crore over 15 years or Tk 13,161 crore over 20 years. The committee, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, decided to withdraw the proposal. No specific reason was disclosed.
The proposed terminal at Kutubjom was intended to be Bangladesh’s third FSRU, expanding the country’s LNG import capacity amid declining domestic gas production and persistent supply shortages for power plants, industries and other consumers.
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).
The proposed Kutubjom terminal was designed for a base regasification capacity of 600 MMCFD, with a peak capacity of 750 MMCFD. CNEE submitted its proposal on June 19, offering a daily charge of US$346,000 under the 15-year arrangement, according to media reports.
The proposed CNEE FSRU would be developed under a Build, Own and Operate (BOO) arrangement, under which the company would take back the terminal after 15 years. In contrast, the contract with Summit LNG for the third terminal, which was later cancelled, was based on a Build, Own, Operate and Transfer (BOOT) model. Under that arrangement, ownership of the terminal would have transferred to the government after 15 years.
CNEE proposed a daily tariff of US$346,000 for supplying 600 million cubic feet of gas per day, compared with Summit LNG’s agreed daily tariff of US$300,000 for the same volume. The difference in tariffs, alongside the contrasting ownership arrangements, raises questions about the long-term cost and value of the proposed CNEE project.
The proposed charge was higher than the daily rates of $254,000 for Excelerate Energy’s terminal and $249,115 for Summit LNG, raising questions about the project’s financial terms 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 Energy and Mineral Resources Division submitted it under Section 68 of the Public Procurement Act, 2006, and Rules 99(2) and 107(2) of the Public Procurement Rules, 2025.
The withdrawal means the proposal has not received final approval from the CCGP.
