Govt plans more LNG import

The government plans to import more liquified natural gas to meet the growing demand for gas, said Nasrul Hamid, state minister for power.

The move was opposed by energy expert Badrul Imam during a stakeholders' dialogue on "Energy Strategy: Towards a Predictable Future" organised by the Dhaka Chamber of Commerce and Industry (DCCI).

The minister said, "We are increasing the local gas production. But we will need more gas for industrialisation and to sustain economic growth. We have a plan to build two new LNG regasification units."

He said the government would not subsidise gas and electricity and asked the business leaders to be ready to pay the prices set in line with the international market.

He said the government is trying to provide industries with uninterrupted power supply so that they do not use captive power plants which waste gas. "Captive power users consume 17 percent of the total gas but their plants have efficiency levels between 15 percent and 20 percent."

At present, Bangladesh has two floating regasification terminals in Moheshkhali with a capacity of 1,000mmcfd (million cubic feet a day). The two terminals are injecting around 750mmcfd gas into the national grid.

Nasrul Hamid said talks were on to build two more terminals each with a capacity of 500mmcfd in Moheshkhali and Payra.

He said gas demand would reach 5000mmcfd by 2030.

The country's current demand is around 4000mmcfd. About 2,100mmcfd is produced locally while 750mmcfd is imported.

"We are trying to sign two long-term LNG purchase agreements with Qatar and Oman," Nasrul said.

"By exploring domestic gas fields, we are getting 10 to 40mmcfd gas from each well. Besides, it takes six to seven months to complete the drilling of a well and the cost of each drilling is around $9 to $25 million depending on the well.

"We need gas right now," he said, adding that there was no alternative to importing LNG.

Energy expert Prof Badrul Imam, who attended the programme, differed with the minister's views.

He said two studies conducted by the US Geological Survey and Norwegian Petroleum Directorate had found that the country has a potential gas reserve of 32 to 42 trillion cubic feet.

"We are at the first stage of gas exploration. We did not even think about entering the second and third stages [of gas exploration]. As the biggest delta of the world, there is no doubt that we are in a highly prospective gas-rich area," he added.

Addressing the businessmen, the state minister said no new gas connection would be given to unplanned industries. "Either you have to move your factory to the economic zones or build one in an industrial hub to get gas connections."

He said, "Many renowned industries had taken illegal connections. We have lists of such industries in Araihazar, Gazipur, Savar, and Ashulia."

Former president of FBCCI Md Shafiul Islam said most factories want to move to the economic zones but many of the zones are not ready.