DHAKA: Bangladesh has started operations at the country´s first liquefied natural gas (LNG) terminal, the country´s energy minister said on Monday, following delays related to technical problems and bad weather.
The floating storage and regasification unit (FSRU), which arrived in Bangladesh in April to offload its maiden cargo of liquefied natural gas from Qatar and moor permanently as an import terminal, began operations on Saturday. It was initially expected to start in May.
The start-up will allow Bangladesh to import liquefied natural gas to offset falling domestic gas production, feeding industrial demand and power generation in a nation where 30 percent go without electricity.
It´s also expected to boost Asian liquefied natural gas prices, coinciding with an anticipated rise in demand ahead of winter. “It certainly adds to the factors that point to a very tight market this winter,” said Nicholas Browne, senior gas analyst at energy consultancy Wood Mackenzie.
“This is mainly driven by limited additional supply until late 2018 together with strong expected demand from China and South Korea. “Since its arrival at Moheshkhali, near Cox´s Bazar in southeast Bangladesh, in April, bad weather has hampered the FSRU´s efforts to dock properly, connect to the import infrastructure and offload its first cargo of Qatari liquefied natural gas , officials have said. The FSRU initially started operations last week but had to call a halt due to a leak in an onshore facility, a source told Reuters.
