Excelerate says Bangladesh FSRU to resume ops by end of July

US-based Excelerate Energy expects its FSRU Summit LNG, which serves Bangladesh’s second LNG terminal located offshore Moheshkhali Island in the Bay of Bengal, to complete repairs and resume operations by the end of July.

“Due to the extent of the damage sustained by the FSRU Summit LNG, it was deemed necessary for the vessel to sail under her own power to a shipyard facility for repairs,” Excelerate told LNG Prime in an emailed statement late on Thursday.

“On June 12, 2024, the vessel safely disconnected from the terminal to begin her journey to a shipyard facility in Southeast Asia,” the firm said.

“Excelerate is committed to making any necessary repairs and returning to service in Bangladesh by the end of July 2024,” Excelerate added.

The US FSRU player did not provide further information.

The 138,000-cbm FSRU was damaged on May 27 during cyclone Remal.

Exclerate previously said that the unit had sustained damage from a floating object which made several points of contact with the vessel’s starboard side.

Several reports said, citing a statement by Summit LNG, that “the impact sheared the vessel’s outer hull, approximately one meter below the waterline, leading to water ingress into the ballast tanks.”

LNG Prime previously invited Bangladesh’s Summit to comment on the matter, but we did not receive a response.

Two Excelerate FSRUs in Bangladesh

In August 2017, Summit entered into a 15-year charter agreement with Excelerate for the FSRU, and the unit began operations at the facility in April 2019.

The terminal has a sendout capacity of 500 million standard cubic feet per day (MMscf/d) of natural gas, and the FSRU is connected to shore by a six kilometers long subsea pipeline.

Excelerate’s FSRU also serves Bangladesh’s first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla.

Launched in 2018, the 138,000-cbm FSRU Excellence completed its 100th STS transfer offshore Bangladesh in 2021.

Bangladesh LNG imports

GIIGNL data shows that Bangladesh imported 5.2 million tons of LNG in 2023, up by 17.3 percent compared to the year before, mostly due to lower spot prices.

Qatar is the largest LNG supplier to Bangladesh.

In January this year, QatarEnergy signed a long-term contract with Excelerate to supply Bangladesh with LNG.

Under the SPA, Excelerate will buy up to one mtpa of LNG from QatarEnergy to be delivered to FSRUs in Bangladesh for 15 years starting in January 2026.

Prior to this SPA, QatarEnergy entered last year into a 15-year deal to supply LNG to Bangladesh’s state-owned Petrobangla.

Under the deal, QatarEnergy’s LNG trading arm will deliver about 1.8 mtpa of LNG to Petrobangla, starting in 2026.

Petrobangla already has a 15-year deal with QatarEnergy’s unit Qatargas for 2.5 million tons of LNG and this deal started in 2018.

Besides this contract, QatarEnergy entered into a deal with Vitol in 2021 to supply 1.25 mtpa of LNG to the latter’s final customers in Bangladesh.

Last year, Petrobangla also signed a long-term deal to buy LNG from Oman’s state-owned firm OQ Trading.

Under this SPA, OQ Trading will supply 0.25-1.5 mtpa of LNG to Bangladesh over 10 years, starting in 2026.

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