Govt assessing new floating LNG terminal along southwestern coast: PM

Highlights

• Govt assessing new floating LNG terminal near Payra or Mongla
• Kutubjom floating LNG terminal may begin supplying gas in 2028
• Matarbari land-based LNG terminal targets gas supply from 2030
• Govt plans drilling 150 wells by FY2030-31
• Offshore bidding covers 26 blocks; bids close November 2026
• Projects below 30% progress face review for viability

The government is assessing the feasibility of urgently setting up a new floating liquefied natural gas (LNG) terminal near Payra or Mongla ports, or at another suitable location along the southwestern coast, Prime Minister Tarique Rahman told parliament today (9 September).

The move is part of a broader plan to expand LNG import capacity and increase domestic gas production to reduce the impact of sudden or temporary supply disruptions, particularly on industries.

The government is also progressing with plans for a floating LNG terminal at Kutubjom in Maheshkhali and a land-based LNG terminal at Matarbari.

The Kutubjom terminal is expected to begin supplying regasified LNG in 2028, while the Matarbari terminal is expected to start supplying gas by December 2030, the prime minister said.

Tarique disclosed the plans in a written response to a question from reserved women's seat-17 lawmaker Sultana Ahmed during the question-and-answer session of the third session of the 13th parliament.

The session began at 3:30pm, with Speaker Hafiz Uddin Ahmad in the chair.

Govt seeks multiple sources to meet industrial gas demand

Bangladesh currently has two floating LNG terminals, which together can supply an average of around 935 million cubic feet of gas per day, according to the prime minister.

The government is also exploring the feasibility of transporting gas from Bhola to the mainland in LNG form for supply to interested industrial consumers.

Subject to gas availability, industries located in planned industrial areas – including economic zones, export processing zones and Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estates – will be prioritised, Tarique said.

At the same time, the government plans to accelerate domestic gas exploration and production.

150 wells targeted by FY2030-31

The government plans to drill 150 wells by FY2030-31 to increase domestic gas supplies.

It will also conduct 4,500 line-km of 2D seismic surveys and 4,200 sq km of 3D seismic surveys to identify new gas reserves.

An international bidding round was launched on 24 May for oil and gas exploration and extraction in 26 offshore blocks. The deadline for submitting bids is November 2026.

The government is also preparing the Bangladesh Onshore Model Production Sharing Contract (PSC) 2026 to attract international investment in onshore oil and gas exploration.

Govt moves to contain project delays, cost overruns

In response to a separate written question from Cumilla-10 MP Md Mobasher Alam Bhuiyan, Tarique outlined measures aimed at preventing repeated extensions to project deadlines and increases in development costs.

He identified weak feasibility studies, inaccurate cost estimates, delays in land acquisition, prolonged procurement procedures, inadequate monitoring and weak accountability as major factors behind time and cost overruns.

"Time and cost overruns in government development projects in Bangladesh generally do not occur for a single reason; rather, multiple weaknesses in project formulation, approval, land acquisition, financing, procurement and management interact to create this problem," he said.

The government is seeking to address these problems by strengthening feasibility studies before project approval and speeding up preparatory work once projects are approved.

It is also updating existing guidelines on project formulation, processing, approval and revision.

Dashboards are being introduced at relevant ministries and divisions to strengthen project monitoring, while regular reviews and closer field-level supervision are being expanded.

The government is also strengthening coordination among agencies to speed up land acquisition and the relocation of utilities, he said.

Projects with less than 30% progress under review

Tarique said instructions had been issued to review delayed projects to identify the reasons for delays, irregularities, cost escalation and repeated revisions, and to take action against those responsible in accordance with the rules.

"Projects whose implementation progress is below 30% are being assessed for their utility and effectiveness," he said.

Relevant ministries and divisions will decide whether such projects should be restructured, have their scope changed or continue.

The government has also instructed agencies to develop cluster projects under integrated programmes instead of approving projects individually.

The use of electronic government procurement (e-GP) is being expanded to improve transparency and efficiency in public procurement.

Professional qualifications, skills and practical experience will be prioritised in appointing project directors, while leadership continuity will be maintained where necessary. Existing policies governing the appointment of project directors are also being updated.

The government is placing greater emphasis on projects under the public-private partnership (PPP) model.

Steps are also being taken to update the Public Procurement Rules 2025 to make public procurement more competitive and accountable.