State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Tuesday said efforts were underway for setting up land-based LNG terminal by June 2023 to increase re-gasification capacity to 15 million tonnes per annum.
“Currently two LNG (Liquefied Natural Gas) terminals having floating, storage, re-gasification units (FSRU) with a capacity of 3.75 million tonnes per year each are operating at Moheshkhali,” he said.
Inaugurating a two-day South Asia LNG Forum 2019 at a city hotel, the state minister said that the two LNG terminals were re-gasifying around 560-570 million cubic feet of LNG per day.
“With continuous efforts, we will get 800-900 mmcfd but demand will not be fulfilled, so we are going for onshore LNG. Meanwhile we have got gas in Bhola while possibility raised in Mymensigh,” he said.
Nasrul hoped that end of this year the energy sector will be reached a good stage, as the government went for mixed fuel, adding, “A financing plan is needed for evaluation of gas price for the next 5-10 years.”
Mentioning the land-based LNG terminal, he said a total of 12 global firms and their joint venture are now vying to bag the contract to build the country’s first land-based LNG terminal at Matarbari, which will handle 7.5 million tonnes of LNG per year (mtpa).
According to an official of power ministry, the country’s overall gas production is around 3,300 mmcfd including the LNG against the demand of 4,000 mmcfd.
The LNG forum said the importation of LNG is the quickest way to meet increasing domestic demand. As power utilities were increasingly turning to natural gas to replace coal-coupled with increasing demand from industries – LNG’s role in the Bangladesh’s energy mix will only get bigger.
With spotlights on Bangladesh, Pakistan and Sri Lanka joining India as major consumers of natural gas and LNG, meeting the power demand of a fast growing population coupled with strong domestic growth remains a priority.
Bangladesh is well placed to join South Asia’s LNG importers’ club and is well positioned to meet LNG demand with several FSRU being penned to be deployed.
Local and foreign energy related officials delivered their informative speech with LNG supply-demand along with its opportunity in Bangladesh.