Excelerate LNG Terminal Operations Cease Entirely as Supply Shortfalls Deepen

A fragile recovery in Bangladesh’s national gas supply collapsed on Wednesday afternoon when operations at Excelerate Energy’s Floating Storage and Regasification Unit (FSRU) came to a complete halt due to depleted LNG reserves. Following a grueling 25-day deficit, the national grid had briefly stabilized last Saturday after Summit Group’s terminal resumed full output and Excelerate restored partial regasification. However, the total absence of incoming cargoes over the last three days rapidly drained remaining buffer stocks, forcing the US-based operator to shut down offloading valves entirely at 3:00 PM.

Procurement Failures and Tanker Delays

The operational collapse highlights severe vulnerabilities in the national procurement pipeline managed by Rupantarita Grammeen Power Company Limited (RPGCL), the Petrobangla subsidiary responsible for overseeing LNG imports under energy ministry approval. Seeking lower prices beyond standard long-term contracts, authorities issued several purchase orders through direct procurement mechanisms. Four cargo deliveries were scheduled to arrive within the month under these direct purchasing arrangements; not a single one has docked. Consequently, despite having functional onshore and offshore regasification infrastructure ready to process fuel, grid managers have been left without feedstock.

The disruption trace back to 21 July, when a fire outbreak forced Excelerate’s offshore unit off the coast of Moheshkhali to suspend operations. Though technical crews cleared the facility for full regasification by Saturday, the lack of fresh LNG carriers restricted operations to drawing down residual reserves. Processing volumes dwindled steadily through Monday and Tuesday before running out entirely on Wednesday.

Grid Capacity and Economic Exposure

Bangladesh faces a baseline demand of roughly 3,800 million cubic feet per day (MMcf/d) of natural gas across its domestic, industrial, and power sectors. Under normal operating conditions, Petrobangla manages the system by distributing roughly 2,700 MMcf/d, of which 1,050 MMcf/d is supplied via re-gasified LNG from the country’s two offshore FSRUs. Excelerate Energy operates a daily processing capacity of 600 MMcf/d, while Summit Group’s unit handles up to 500 MMcf/d.

The structural dependency on these two floating units leaves the economy exposed to extreme volatility whenever cargo schedules slip.

• On Friday afternoon, with both terminals out of service, total national gas injection dropped to 1,640 MMcf/d.

• By Friday evening, Summit Group initiated partial output, discharging 90 MMcf/d into the national grid.

• Rapid ramping at Summit’s facility lifted total national distribution to 2,420 MMcf/d by early Saturday morning.

• Declining reserves at Excelerate caused total supply to drop to 2,400 MMcf/d on Sunday and 2,280 MMcf/d on Monday.

• Total LNG injection stood at 660 MMcf/d on Tuesday before falling to 550 MMcf/d following Excelerate’s shutdown.

• By Wednesday evening, total national gas supply fell to 2,180 MMcf/d, recording a net daily loss of 100 MMcf/d.

Prospects for Recovery

With Excelerate offline, national LNG supply relies entirely on Summit’s unit discharging around 550 MMcf/d into the transmission network. Relief remains distant as industrial hubs in Chittagong, Dhaka, and Gazipur brace for reduced pipeline pressure and potential production cutbacks.

A single replacement cargo is scheduled to anchor on Thursday, though officials indicate this shipment will be directed entirely to Summit’s terminal. Excelerate’s facility is not expected to receive its next dedicated cargo until 23 or 24 August, ensuring that the terminal will remain completely inactive for several days and prolonging energy rationing across manufacturing and power generation sectors.