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Project Insights

Bangladesh LNG imports face pipeline woes

The delay in starting up Bangladesh’s LNG terminal because of a fault with the connecting pipeline could pose problems for the project developers The delay in starting up Bangladesh’s LNG terminal because of a fault with the connecting pipeline could pose problems for the project developers.
By Andrew Walker 27 June 2018 Asia Pacific / LNG 0 31485
Petrobangla and Excelerate signing an FSRU deal in 2017. (Excelerate)

Bangladesh’s first LNG import project has yet to start commercial operations, and the delay could mark a costly set back for its developers. A faulty connection between Excelerate Energy’s FSRU and a transmission pipeline has prevented the vessel from supplying gas to the national grid since it arrived in late April.

There is a provision within the project documentation for the developer to incur penalties for the late start-up, according to Shahwar Nizam, partner at DFDL, which provides legal, tax and investment expertise...