The interim government has decided to float open tenders for the construction of onshore LNG terminals at Maheshkhali, Payra, and Matarbari, signaling a shift in its approach to LNG infrastructure development.
According to sources, the tenders will invite bids from companies interested in building terminals in these key locations as part of efforts to strengthen Bangladesh’s energy supply.
The decision comes after the government terminated a term sheet agreement with U.S.-based Excelerate Energy regarding the construction of a floating LNG terminal in Payra. Last week, Petrobangla formally notified Excelerate Energy of the cancellation of the agreement, which had been established under a special law. In response, a delegation from Excelerate Energy, including former U.S. Ambassador to Bangladesh Peter Haas, held a courtesy meeting with the Petrobangla chairman and other senior officials to discuss future cooperation last Wednesday.
During the meeting, Petrobangla proposed that Excelerate Energy consider participating in the upcoming tenders for LNG terminal projects.
The U.S. company was also invited to be part of a new list of suppliers for importing LNG from the spot market. Petrobangla is in the process of revising this list, allowing interested companies, including Excelerate, to be included.
Petrobangla Chairman Zanendra Nath Sarkar confirmed that the decision to cancel the Payra terminal agreement was due to the need for open tendering. He explained that the government is moving away from exclusive contracts and will now offer all future LNG infrastructure projects through open bids. Excelerate Energy was encouraged to participate in this process, particularly for the Maheshkhali terminal, where a new floating storage regasification unit (FSRU) is planned.
Officials at the meeting also discussed the possibility of expanding Excelerate’s involvement in the country’s energy sector, particularly in LNG regasification. Excelerate Energy expressed interest in increasing its supply of LNG to Bangladesh and potentially expanding its terminal operations. Petrobangla reaffirmed its openness to receiving proposals from Excelerate for larger terminal projects, especially in areas where necessary infrastructure, such as pipelines, is already in place.
Currently, Excelerate Energy operates one LNG terminal at Maheshkhali, which supplies 600 million cubic feet of gas per day. The company signed a 15-year gas supply agreement with Petrobangla in 2016 and began supplying gas in August 2018. The government is also planning to import between 0.85 and 1 million metric tons per year of LNG from Excelerate’s affiliate, Excelerate Gas Marketing, under a long-term agreement that is set to begin in January 2026.
