The interim government has decided not to sign an agreement with US-based Excelerate Energy to build another regasification plant for liquefied natural gas (LNG) imported by Bangladesh, according to officials of state-run Petrobangla. 

Petrobangla has cancelled a memorandum of understanding (MoU) for signing the deal, said the officials.

The decision comes following the cancellation of another deal with Summit Group for building a third floating storage and regasification unit (FSRU) in the country, said a top Petrobangla official yesterday after a meeting with Excelerate Energy delegates.

Former US ambassador to Bangladesh Peter D Haas, who recently joined Excelerate Energy as a strategic advisor, led the delegation.

Petrobangla Chairman Zandendra Nath Sarker led the Bangladeshi side at his office. The Daily Star could not reach him for comment.

There are currently two FSRUs in the country, one owned by Summit Group and the other by Excelerate Energy.

Both were on way to start running another two in late 2026.

"The previous government awarded the works under the controversial Quick Enhancement of Electricity and Energy Supply Act 2010 without any tender process," said the top Petrobangla official on condition of anonymity.

The interim government reviewed the associated agreements, which were at a primary stage, and cancelled those, he said.

One was a term sheet or MoU signed with Excelerate Energy in November last year for running an FSRU in Payra area of Patuakhali, he said.

The cancellation notice was issued on the same day the Summit got the notice, he said.

Summit Group got the cancellation letter on October 7 and appealed against the decision.

At yesterday's meeting, Petrobangla informed that it would float a tender if a decision was taken to run new FSRUs and Excelerate Energy would be welcome to participate, according to the sources.

Besides, Excelerate Energy asked about the cancellation of a recent tender in which it had placed a bid for supplying LNG from the international spot market, they said.

Petrobangla replied that at least three bids were required whereas it received two, said the sources.

"We will invite the suppliers again and you (Excelerate Energy) can join there," the sources quoted the Petrobangla officials as saying.