LNG prices for industrial use to be announced soon

The government may announce the prices of liquefied natural gas for industrial use in the next 15-20 days after discussing with the business community.

Once a price is decided, the government will start allocating gas and provide the gas distribution time so that industrialists can make their business plans accordingly, said Nazimuddin Chowdhury, energy and mineral resources secretary.

LNG import will start by the end of this year or early next year, Chowdhury said while addressing a tripartite agreement signing ceremony between Bangladesh Economic Zones Authority, Titas Gas Transmission and Distribution Company and seven private economic zones.

Under the deal, Titas will provide gas connections to seven economic zones: Aman, Akij, Arisha, Bay, Meghna, Sonargaon and Meghna Industrial.

The representatives of the economic zones cited unavailability of gas connections as the major barrier.

In response, Chowdhury said: “The gas crisis will not remain like now after one or one and a half years.”

Presently, there is a daily deficit of 50-55 crore cubic feet gas. But 100 crore cubic feet LNG will be imported daily, so there will be no gas crisis, he said.

However, the price may be increased. “Both of us will be in problem if you [businessmen] think negatively about the price hike.”

So far, 97 wells have been drilled, of which 23-25 were successful. “There is also a possibility of getting gas from these wells,” he said, adding that another 108 wells will be drilled in the next three to four years.

Speaking at the function, Beza Executive Chairman Paban Chowdhury said all seven economic zones would surely get gas connections, thanks to the tripartite agreement. “It will open new investment horizons in the economic zones,” he said.

An economic zone is a designated area in a country with special economic regulations that differ from the rest of the country. An entrepreneur can enjoy various benefits, including tax incentives from the authorities, by setting up an industrial unit in an economic zone.

Beza has been working to set up 100 economic zones by 2030, which will create jobs for one crore people and produce goods and services worth $40 billion. Some 74 locations across the country have been identified for setting up economic zones. Beza is setting up four economic zones in the public sector, while it has awarded two final licences in the private sector.

It also awarded prequalification licences to 10 local private companies so far to set up 11 other economic zones.