Govt fast-tracks spare parts import for floating LNG terminal to restore gas supply

Consumers will continue to experience severe low gas pressure until supply situation improves, Titas warns.

Highlights:

• Replacement parts to be imported from Finland, Spain, Türkiye.
• Import permit issued within one hour.
• Fire-damaged terminal cut 450mmcfd from the national grid.
• Excelerate aims to resume partial gas supply next week.

The government has fast-tracked approval for the import of critical spare parts for the damaged Excelerate Energy floating LNG terminal, aiming to restore operations as quickly as possible following severe disruptions to the country’s gas supply after the recent fire incident.

Excelerate Energy sought permission yesterday through Petrobangla to import the spare parts needed to replace the damaged equipment. The Energy and Mineral Resources Division approved the request promptly the same day.

The division also instructed the Office of the Chief Controller of Imports and Exports to issue the import permit within one hour of receiving the application in an effort to expedite the restoration of the country’s gas supply.

The emergency import initiative comes seven days after the 21 July fire, which severely damaged multiple cable systems connected to the floating storage and regasification unit (FSRU)’s two boilers, forcing a reduction of 450 million cubic feet per day (mmcfd) of gas supply from the national grid, disrupting supplies to households, industries and compressed natural gas (CNG) filling stations.

Mohammad Mahmudul Haq, Controller (In-charge) of the Office of the Chief Controller of Imports and Exports, told The Business Standard, “We approved Excelerate’s import application on an emergency basis.”

In a letter issued yesterday, the Energy and Mineral Resources Division said the fire caused extensive damage to critical boiler-related cable systems, forcing the operator to source replacement equipment from abroad.

According to the letter, the import permit covers one permanent consignment comprising 10 packages of spare parts required for the operation and maintenance of the Excelerate Energy Bangladesh Limited-operated floating LNG terminal.

The spare parts will be imported from Finland, Spain and Türkiye.

The floating LNG terminal supplies regasified LNG to the national gas grid under the Implementation Agreement and Terminal Use Agreement signed between the government and Excelerate Energy Bangladesh Limited.

Under these agreements, Excelerate Energy is responsible for the regular maintenance of the terminal and imports specialised equipment and components from overseas as required.

As part of efforts to resume operations quickly, the ministry also held a meeting on Monday with Excelerate Energy Regional Vice-President Aziz Kassim.

The US-based Excelerate Energy-operated FSRU normally supplies around 500-550mmcfd of gas to the national grid, accounting for a significant share of Bangladesh’s imported LNG supply.

Aninda Islam Amit said yesterday that the FSRU is expected to resume supplying around 280-300mmcfd of gas to the national grid from next week, although full restoration will take additional time.

Meanwhile, Titas Gas Transmission and Distribution PLC warned in a statement posted on its official Facebook page yesterday that consumers across its franchise areas will continue to experience severe low gas pressure until the country’s LNG supply situation improves.