The country’s gas demand is increasing rapidly due to industrial and socio-economic development, and will reach 10,000 mmcfd by 2041. However, domestic gas is depleting, prompting government plans to import more liquefied natural gas (LNG). Besides, gas exploration activities will continue onshore and offshore, according to an energy division official.
A Petrobangla official said, the country is being dogged by serious gas shortages since a long time now, crippling industries. At present, the total gas demand is more than 4300 mmcf. It currently has a supply of about 3,258 mmcfd. Of this, 575 mmcfd gas is coming from RLNG, which is being imported from abroad.
“425 mmcfd more RLNG will added to the national grid in a very short time. If we consider this, the country’s daily gas deficit is about 600 million cubic feet. The demand is also increasing. Bangladesh’s LNG imports are expected to hit 10 million mt/year by 2023,’he added.
State minister for power, energy and mineral resources Nasrul Hamid has said, the country’s gas demand is increasing. Currently we have 13-14 tcf gas reserve in the country, which is depleting gradually. According to our demand growth, 10,000 mmcfd gas will be needed. Of this, 8,000 mmcfd will be needed for industry. ‘The government has taken various types of initiatives to meet the gas demand. Hope we can do this,’ he added.
Nasrul Hamid further said, ‘If we discover gas in the deep sea, it takes a minimum 7 to 8 years to use the gas. On the other hand, it takes 1.5 to 2 years to dig a well onshore. We don’t know where the gas is available. However, we are trying to explore gas offshore and onshore. We have already got new gas wells. Around 2700 mmcfd new gas is being added to the national grid during the current government.
‘We have taken an initiative to drill 108 wells in the country. Besides, we have taken various types of initiatives to explore gas in the deep sea. However, it takes a long time for gas exploration process onshore and offshore. So we are importing LNG to meet the current gas demand in the country,’ Nasrul said. The official said, during the recent state visit of Prime Minister Sheikh Hasina to Brunei from April 21-23, a memorandum of understanding (MoU) was signed for LNG supply from that country.
Meanwhile, AOT Energy, a globally-recognized oil and gas supply company, is in the pipeline and presently waiting for the Bangladesh government’s final ratification. To ensure uninterrupted supply of LNG in future, the government earlier agreed to make a deal with AOT Energy of Switzerland for 15 years.
AOT and Petrobangla signed a MoU in June 2017. After the successful completion of all procedures, the matter is now pending with the energy ministry. It will be sent to the Purchase Committee of the Cabinet for final approval.
Once approved, AOT Energy will supply 1.25 metric tonnes of LNG for 15 years to minimize the acute natural gas crisis in the country. Considering the necessity in bringing a cost-efficient, flexible and timely solution to the country’s energy requirements, AOT offered USD 12.00 per unit, while the country is presently paying 12.65 USD per unit to RasGas, Qatar. Bangladesh has started getting LNG from RasGas, Qatar, since last year.
Earlier, the government had plans to import about 2,000 mmcfd of LNG by installing four separate floating storage and regasification units (FSRU) by the year 2020, and to import LNG at a cost of USD 2 billion to mitigate the gas crisis in the country. As part of the plan, Petrobangla and AOT Energy inked a deal on June 2017—it is the MoU signed between AOT and Petrobangla. Upon the agreement, an inter-organisational delegation visited the AOT headquarters and their industrial sites to learn about its experience and capacities.
Bangladesh has also signed a deal with Oman to buy LNG. Besides that, the government has decided to buy from another 26 companies on the basis of spot market pricing. Recently Prime Minister’s energy advisor Dr. Tawfiq-e-Elahi had said “We promised to give electricity, we gave electricity. Now, I promise to give gas, will give gas too. In the coming year, 150 crore cubic feet (LNG) will be imported. So the gas deficit will be met. There will be no gas crisis in the industry.”
Due to lack of gas supply, many of the industries in the country are not able to start production in full swing. The government cannot start providing gas to 3,500 factories across the country even after their getting approval for new gas connections. So, the government planned import of LNG to resolve the crisis.
