Dhaka seeks LNG deals with Jakarta

Bangladesh is seeking more cooperation with Indonesia in the energy sector, especially for the supply of liquefied natural gas (LNG) to support its growing industrial sector, Bangladesh’s State Minister for Power and Energy Nasrul Hamid said in Jakarta on Wednesday. 

“We have a number of gas fields, but [the gas] has begun to deplete, so we need huge gas supply for our growing industry, as we’re now the second-largest garment exporter,” Hamid said at the Gas Indonesia Summit and Exhibition 2019.

In his opening speech, he said the country had invested US$25 billion in the energy sector over the last six years, and plans to invest more in future.

Bangladesh had two floating storage regasification units (FSRU) to receive LNG imports, Hamid added.

“We want to learn more about your technology and your resources, especially on coal and LNG supply,” he said, without disclosing the potential import volume.   

Bangladesh may import 17.5 million tons of LNG a year by 2025, as its domestic gas reserves are dwindling and demand grows.

Speaking at the event, Indonesian Energy and Mineral Resources Minister Ignasius Jonan concurred that gas demand was growing, but said its utilisation should be efficient and environmentally-friendly.

“Technology is growing; the market is growing, like Bangladesh said. However, the stakeholders should consider how to use the gas in an efficient manner and be ready for new competition from different kinds of energy,” Jonan said.