Bangladesh has thrown doubt on two smaller FSRU projects with traders Gunvor and Vitol as it prioritises two larger import terminals.
It began shipping in gas this month after the arrival of Excelerate Energy's 138,000-cbm FSRU Excellence (built 2005) at Cox’s Bazar in April.
A second FSRU project, with Summit Corp and Japan’s Mitsubishi, will start in March, doubling the country’s import capacity to 7.5m tonnes a year.
Plans for the smaller projects had attracted Gunvor, Vitol, Trafigura and ExxonMobil.
“These small projects are not a priority anymore,” Mohammad Quamruzzaman, managing director of Rupantarita Prakritik Gas, the unit in charge of LNG imports at state-owned oil firm Petrobangla, told Reuters.
“These are costlier than the bigger ones. Why should we go for the costlier option when there is no urgency right now? One bigger-capacity FSRU has started operations and another is expected to be commissioned by March.”
Trafigura and Gunvor were said to be competing for projects close to Chittagong, but Bangladesh said in May it had stopped talks with Trafigura.
"Slim" chance
Vitol beat Exxon to develop a small FSRU for the Sangu gas platform. It declined to comment on the situation.
Belgian shipowner Exmar said in May it had won a 10-year charter for a small FSRU from Gunvor that was destined for Bangladesh.
Quamruzzaman said the Gunvor project's chances were now “very slim”, although he said all the schemes could be revived at any point.
A senior Petrobangla official said: “The deal with the trader [Gunvor] was almost finalised but it got delayed. Now the big FSRU came online and we doubt this (the Gunvor deal) will happen.”
A Gunvor spokesman said: “Our project has not been dropped.”
Exmar has previously said the ship was expected to arrive in the fourth quarter of this year and start operations after its full commissioning.
The FSRU had been fully paid by Exmar and the financing of the unit was under discussion earlier this year.
Exmar has been contacted for comment.
