Business Report :
OQ Trading International of Oman has proposed building a floating storage and regasification unit (FSRU) at Moheshkhali in the Bay of Bengal to ease Bangladesh’s LNG regasification bottlenecks.
The company has already placed a proposal before state-run Petrobangla to set up the FSRU with an annual capacity of around 3.75 million tonnes under a build-own-operate-and-transfer (BOOT) arrangement.
“We’ve received OQ Trading’s proposal for a new FSRU, which is now under review,” Petrobangla Chairman Md Reznur Rahman told the media.
Officials note that Bangladesh urgently needs additional FSRUs and land-based LNG import terminals to expand regasification facilities, as domestic gas reserves and production continue to shrink.
Currently, gas output from local fields has declined to about 1,800 million cubic feet per day (mmcfd)-a level last seen in 2008-09. Production peaked in fiscal 2016-17, with the highest daily supply of 2,786 mmcfd recorded on May 6, 2015, according to Petrobangla data.
At present, Bangladesh runs two FSRUs, but their combined regasification capacity of 1,100 mmcfd is already nearly maxed out, with actual supply hovering around 1,050 mmcfd.
“Unless more FSRUs or land-based LNG terminals are built soon, the country will face an acute gas shortage,” energy expert Prof Ijaz Hossain warned.
Just last month, Bangladesh signed its first short-term LNG supply contract with OQ Trading International to secure stable supply and reduce dependence on the volatile spot market.
Under the sales and purchase agreement (SPA), Bangladesh will import one cargo per month from August 2025 to December 2026-a total of 17 cargoes. This includes five shipments in 2025 and 12 in 2026, ensuring additional supply during peak demand.
For the first time, LNG will be priced against the Platts-assessed Japan Korea Marker (JKM), the benchmark for Northeast Asia deliveries, with an additional premium of $0.15 per million British thermal units (MMBtu).
Bangladesh currently imports LNG under long-term Brent-linked contracts with QatarEnergy LNG (formerly Qatargas) and OQ Trading. The new short-term deal introduces a different pricing mechanism, diversifying the country’s import portfolio.
Rupantarita Prakritik Gas Company Ltd (RPGCL), the state entity managing LNG imports, typically purchases three to four spot cargoes a month, with volumes rising during summer and Ramadan when industrial demand peaks.
Bangladesh already has two long-term agreements with OQ Trading. The first, signed in May 2018 and valid until 2029, allows annual imports of up to 1.5 million tonnes. The second, signed in June 2023, covers 2026-2035. It starts with 250,000 tonnes in 2026, increases to 1 million tonnes in both 2027 and 2028, and rises to 1.5 million tonnes annually from 2029 onwards.
The first LNG cargo from OQ Trading arrived on January 31, 2019. By July 2025, Bangladesh had received 125 shipments from the company, amounting to roughly 7.80 million tonnes.
