Faulty LNG shipment hits gas supply

 
Excellerate, the operator of the Moheshkhali LNG floating storage and regasification unit (FSRU), has declined to berth an LNG cargo supplied by Saudi Aramco, citing concerns that the vessel was faulty.
The US company Energy Division confirmed that the vessel’s insurers had raised concerns about providing coverage for risks associated with the cargo.
“Yes, the LNG cargo supplied by Saudi Aramco has been rejected for berthing by the LNG FSRUs at Moheshkhali. However, it will further disrupt gas supplies to Bangladesh,” a senior Petrobangla official said.
The cargo, named Al Hamra, arrived at Moheshkhali on Wednesday. It was supplied by ADNOC on behalf of Aramco. Transferring the LNG to another vessel would require prior notification to the FSRU operator.
“We have already asked Aramco to replace the cargo according to our schedule,” Petrobangla Acting Chairman Md Abdul Mannan told the media.
Petrobangla’s sales and purchase agreement (SPA) with the supplier allows it to seek a replacement cargo if an LNG shipment is found to be unsuitable. However, another scheduled cargo will be needed to arrive at Moheshkhali.
The disruption has sharply reduced LNG supplies, bringing gas availability to the national grid down to around 1,900 million cubic feet per day (mmcfd), against demand of about 3,800-4,000 mmcfd.
"Another cargo ship will berth tomorrow. We expect to recover some of the supply within a day or two through ship-to-ship transfer," Mannan said.
Officials, however, cautioned that completing the ship-to-ship transfer could take at least three days.
"We are also not interested in berthing the cargo as one of our units at Moheshkhali LNG suffered a fire incident," Mannan said.
The disruption to ship-to-ship LNG operations has affected industrial users, household consumers and fertiliser plants, while also putting pressure on electricity generation, officials said.
On Thursday, LNG supplied around 300 mmcfd to the grid, while domestic gas fields contributed about 1,600 mmcfd, leaving a substantial shortfall against national demand.
Meanwhile, Summit LNG Terminal is currently supplying approximately 550 million cubic feet per day (MMCFD) of regasified liquefied natural gas (RLNG) to Bangladesh's national gas grid, providing much-needed additional gas supply at a time of continuing shortages.
The increased supply is expected to help improve gas availability for industries, power generation and other consumers, supporting economic activity and reducing pressure on the country's energy system, said a press release.