Regasified liquefied natural gas (LNG) was finally transported through the Anowara-Fouzdarhat pipeline on Wednesday, overcoming limitations, and making imported LNG supply to the national grid possible.
According to state-owned Gas Transmission Company Limited (GTCL) Managing Director, Engineer Ali Mohd. Al-Mamun, earlier LNG was being supplied to Chattogram region only, due to limitations of pipeline. Now the LNG will be supplied to the national grid.
‘Gas transportation capacity of the new pipeline is 500 million cft. Around 300-350 mmcfd gas will be supplied to Chattogram region, according to demand. The remaining gas will be supplied to Dhaka, which is expected to reduce the gas crisis in the country. However, it will depend on supply of LNG,’ the GTCL MD told Bangladesh Post.
On April 24, a floating storage and regasification unit (FSRU) of Excelerate Energy Bangladesh brought the first shipment of 133,000 cubic meters LNG from Qatar to Moheshkhali LNG terminal. But it got connected to the subsea pipeline network on August 05, and commenced injecting the first regasified gas on August 18.
Sources said, it is possible to supply 500 million cubic feet of gas daily from the FSRU installed in the Bay of Bengal. But despite all the preparations, the full benefits of imported LNG were not compatible due to the pipeline restrictions. Around 300 million cubic feet gas was being supplied.
Initiatives have been taken to build Anwara-Faujdarhat conduction pipeline to take LNG to other parts of the country. The pipeline installation work was supposed to end in April this year, but due to various complications, it was not possible.
‘At present, the total gas demand is more than 4200 mmcf in the country. However, total gas production is about 2,800 mmcf from 110 wells per day, while around 300 mmcf is being supplied from imported LNG. As a result, daily gas deficit is about 11000 million cubic feet,’said the Petrobangla official.
Energy Division sources said, gas demand in power generation and industrial units including fertilizer production, is increasing gradually. On the other hand, the gas reserves in the country’s own fields are gradually depleting.
Against the backdrop of ever-increasing gas demand, the government decided to import LNG in 2010 to meet the country’s dire energy deficit.
After the start of LNG import, the government decided to reopen gas connections of the compressed industrial factories. As a result, the applications for gas connection to gas distribution companies are increasing.
Bangladesh’s LNG imports are expected to hit 10 million mt/year by 2023. The country will be able to add another 500 mmcfd if a second terminal is brought online. The facility is being developed by Summit Group, which has signed an agreement to charter one of Excelerate’s FSRUs, and is expected to be online by the end of 2018 or in the first quarter of 2019.
Bangladesh has also signed a deal with Oman to buy LNG. Besides, the government has decided to buy from another 26 companies on the basis of spot market pricing.