Bangladesh is preparing to pay 35 to 37 per cent more than its current regasification tariffs to a Chinese state-owned firm for a proposed third Floating Storage and Regasification Unit (FSRU). Although the government’s official negotiation committee admitted it could not determine how much of the premium is genuinely justified, it has nevertheless recommended moving forward with the deal.
China National Energy Engineering & Construction Co (CNEE) submitted a proposal on 19 June to construct an offshore liquefied natural gas (LNG) terminal at Kutubjom in Maheshkhali under a build-own-operate framework. The terminal features a baseline regasification capacity of 600 million cubic feet per day (mmcfd) and a peak capacity of 750 mmcfd. Under a 15-year agreement, CNEE quoted a daily charter fee of $342,000.
That figure represents a substantial premium over existing contracts. Excelerate Energy currently charges $254,000 per day, whilst Summit LNG receives $249,115 per day for their operational terminals. CNEE’s quote also exceeds the $300,000 daily rate Petrobangla agreed to in March 2024 for Summit’s second proposed FSRU—a deal terminated in October 2024 following political changes in Dhaka and now contested in court. Furthermore, the Chinese firm’s fee sits well above the $239,653 daily benchmark recommended in a 2025 feasibility study conducted by Rupantarita Prakritik Gas Company (RPGCL).
The breakdown of CNEE’s $342,000 daily rate under the 15-year option includes a fixed fee of $246,000, an operational charge of $59,000, and a port service fee of $37,000. Under a secondary 20-year option submitted by the committee, the daily fee would decrease slightly to $329,000. Over a 15-year period, Petrobangla’s financial commitment is valued at $1.002 billion (approximately Tk 12,324 crore) at a 12 per cent discount rate.
CNEE attributed the higher pricing to global market shifts, including Middle Eastern geopolitical conflicts, volatile energy supply chains, increased shipbuilding costs, and tight scheduling requirements to commission the terminal within 18 months of signing. The seven-member negotiation committee, headed by Petrobangla Chairman Md Abdul Mannan, noted that whilst global market conditions might justify a price increase, calculating the exact fair market value is impossible without an independent third-party assessment.
Energy experts have raised serious concerns over the absence of competitive bidding and the compressed timeline. Former BUET professor and energy analyst Mohammad Tamim questioned the financial justification, pointing out that CNEE’s public records show no prior experience in developing FSRUs. He stressed that converting a vessel, conducting necessary sea bed surveys, and completing complex marine engineering typically requires at least 24 months.
The push for a third terminal arrives amid severe supply disruptions. QatarEnergy, Bangladesh’s primary long-term supplier, reduced scheduled deliveries after conflict near the Strait of Hormuz halted shipments from its Ras Laffan terminal in late February. Coupled with an incident on 21 July that temporarily knocked Excelerate Energy’s terminal offline, Bangladesh has been forced to buy expensive spot-market LNG, driving projected national energy subsidies up to Tk 40,000 crore this fiscal year.
