Bangladesh's Summit LNG Terminal may be unable to restart its floating storage and regasification unit for several more weeks after uncovering damage to an underwater gas transmission pipeline, Rafiqul Islam, the managing director of state-run Rupantarita Prakritik Gas Co. Ltd. told S&P Global Commodity Insights Aug. 13.
Summit FSRU is one of Bangladesh's two LNG import facilities and was previously expected to restart around Aug. 8 as divers attempted to conduct repairs in the middle of bad weather, strong winds and large waves in the Bay of Bengal.
Islam said Summit LNG has encountered fresh delays in resuming operations after Singapore-based service providers traced the damage to the disconnectable turret mooring plug located in the subsea landing pad through which it holds the FSRU.
The pipeline underwent sonography and technical experts took snapshots, the official added.
In addition to bad weather conditions, Summit Group, which operates Summit LNG Terminal, has also faced delays due to the county's political turmoil, a senior Petrobangla official said. He said it could take all of August or several weeks more to repair the damage, and Summit had informed RPGCL about the damaged DTM plug.
Summit is yet to announce the new date for resuming LNG regasification. When contacted, Summit Group Chairman Muhammed Aziz Khan said the facility will be "coming into operations soon" without giving more details.
Bangladesh is unlikely to float any fresh spot LNG tender until Summit's FSRU comes online, he said. RPGCL, a wholly owned subsidiary of Petrobangla, looks after LNG trading in Bangladesh.
The South Asian country has been struggling to receive LNG cargoes for regasification since Summit FSRU was taken offline since May 30 for repairs due to cyclone damage, with at least one spot LNG cargo waiting to discharge for around 15 days before unloading on July 30 at Excelerate Energy's FSRU and another spot LNG cargo deferred.
Additionally, the political turmoil after the resignation of the prime minister means that state energy companies may be cautious in making new LNG purchases, suppliers are likely to be wary of signing new contracts and LNG supply is likely to command a high market premium.
Source: Platts