A Chinese company is set to establish a Floating Storage and Regasification Unit (FSRU) at Kutubjom in Maheshkhali upazila of Cox’s Bazar, according to a press release from the finance ministry on Thursday.

The FSRU will be set up on a government-to-government (G2G) basis, the statement said, adding that the Cabinet Committee on Government Purchase (CCGP) had approved a proposal from the energy ministry.

The government will pay over Tk 12,300 crore for a 15-year term or around Tk 13,160 crore for a 20-year term to China National Energy Engineering & Construction Co Ltd (CNEE).

On June 19, CNEE submitted a proposal to establish an offshore LNG terminal at Kutubjom in Maheshkhali under a build-own-operate model, with a base regasification capacity of 600 mmcfd and a peak capacity of 750 mmcfd.

The Cabinet Committee on Economic Affairs approved the proposal from CNEE in principle on July 28.

Bangladesh has two FSRUs, and the decision to add another comes amid a deepening LNG supply crisis caused by the war in the Middle East.

QatarEnergy, Bangladesh’s largest LNG supplier, cut its scheduled deliveries for 2026 after the war disrupted shipments through the Strait of Hormuz, forcing Bangladesh to buy the fuel at much higher prices from the spot market.