In a historic move, gas extracted from Bhola, the southern island district, is now being distributed to Dhaka.
The inauguration of Bhola's CNG supply took place in a capital city hotel by State Minister for Power, Energy, and Mineral Resources Nasrul Hamid on Thursday.
The gas is converted into Compressed Natural Gas (CNG) and transported in cylinders to factories, marking the official commencement of supply from yesterday.
Private company Intraco is spearheading the Bhola gas supply initiative. Company Secretary Mr. Salauddin confirmed to Bangladesh Post that the initial delivery was made to a textile factory in Gazipur.
Each cylinder holds 3,500 cubic meters of gas and is transported by dedicated trucks. Priced at 47.60 taka per cubic meter, this CNG delivery provides industries with a more cost-effective alternative.
Nasrul Hamid hailed this as a groundbreaking moment in the country's history, emphasizing plans for a pipeline extending from Bhola to Barishal, reaching Khulna, and potentially supplying the northern region.
Speaking at the inauguration of Intraco Refueling Station PLC's pre-compressed gas transport project, the state minister revealed
plans to utilize CNG for industrial purposes in Dhaka and beyond.
This initiative, a first in Bangladesh, involves transporting gas via vehicles, a method widely practiced globally. Hamid highlighted the cost-effectiveness and efficiency of this approach compared to traditional pipeline methods.
In addition to supplying gas to Dhaka, there are future plans for a gas pipeline from Bhola to Barishal, with a transmission line reaching Khulna, covering the southwestern and eastern regions.
Ilisha-1 field in Bhola district, declared the country's 29th gas field on 22th May this year, brings a glimmer of hope. However, it was projected then to take about three years to establish a pipeline for transporting the gas from Bhola to Dhaka.
Hamid emphasized the development of both short-term and long-term plans for utilizing gas from Bhola, expressing optimism about extending gas supply to residential customers in the future.
The venture is expected to enhance gas accessibility, affordability, and efficiency in the country. Speakers emphasize that the increasing demand for gas in industries remains a priority, with the possibility of reducing LNG imports for economic savings.
Intraco’s Managing Director Riyad Ali confirming the experimental start of gas delivery. The company signed a 10-year agreement with Sundarban Gas Company in May, focusing on CNG supply to industries.
The gas pricing structure is detailed in a circular issued by the Energy Department, highlighting the involvement of various companies in the supply chain.
Intraco's initial phase involves delivering 50 lakh cubic feet of gas per day in the form of CNG, later expanding to 2.5 million cubic feet.
Factories in the Bhaluka-Gazipur region facing energy shortages will receive priority. The pricing structure ensures a margin for CNG stations and covers various charges, funds, and VAT.
Explaining the logistical challenges, Petrobangla noted the supply company's need to cover a distance of 230 to 250 km to transport gas from Bhola to Dhaka. The entire process involves collaboration between Bapex, Sundarban Gas Distribution Company, and Intraco, streamlining the journey of Bhola's gas from production to end consumers.
