The state-owned energy corporation Petrobangla would suggest the government to open up import of liquefied natural gas (LNG) to the private sector to weather the country's prevailing energy crisis, especially in the industrial hub Chittagong, officials said.
'We've prepared some recommendations to overcome the gas crisis. We'll suggest the government to allow the private sector to import LNG,' Petrobangla Chairman Jalal Ahmed told the FE Friday.
In the backdrop of the prevailing gas crisis, the newly-elected Awami League-led government in mid-February asked Petrobangla to work out possible ways to face the challenges in the coming days.
Bangladesh, one of the emerging economies in this subcontinent with a six per cent average growth over the last five years, has limited recoverable gas reserves that will be depleting from 2012, Petrobangla said.
Several scores of newly set up manufacturing units in the country's largest industrial hub Chittagong are not getting gas connections because of the failure to increase gas production over the years.
The smooth gas supply system just broke down in the port city when production from Sangu, the country's lone offshore field, slipped drastically to 40 million cubic feet of gas per day (mmcfd) from its original capacity of 150 mmcfd two years ago.
Petrobangla can supply nearly 1,850 mmcfd against the demand for more than 2050 mmcfd.
'The private sector would import LNG and convert it into its normal form at a re-gasification plant,' Jalal Ahmed said, adding, 'We can allow it to utilise our existing transmission lines to supply the converted gas to the consumers.'
He said: 'Once it required about $2.0 billion to set up a re-gasification plant. Now, the cost has gone down below $2.0 billion after introduction of the Floating LNG Terminal in the world.'
Currently, the LNG price in the global market is about $5.5 to $6.10 per thousand cubic feet (Mcf).
Qatar, Indonesia, Papua New Guinea, Malaysia, Egypt, Trinidad and Tobago, Oman and Brunei are the major suppliers of LNG.
'I think imported LNG cost in Bangladesh would not be much higher than the gas price in the international market,' he said, adding, 'We sell gas to KAFCO at $5 to $11 per Mcf, depending on the international market price.'
Since the country has no better option to boost gas production shortly, LNG import by the private sector is the best option at this moment to continue industrial growth in the country, Mr Ahmed said.
Two years from now would be required to set up a re-gasification plant and supply the converted gas to the consumers, the chairman said.
Indian government last year allowed three companies in Gujarat to import LNG and sell those to the private consumers.
Taiwan, Japan and South Korea are the major LNG importers in the world to run their manufacturing and other units.
LNG, primarily methane, is produced by compressing and cooling it to minus 260 degrees Fahrenheit, converting it into a liquid form, which is about 1/600th of the volume of natural gas.
The LNG is then loaded into special cryogenic tankers, which can transport it anywhere in the world. Upon arrival at an LNG port facility, it is re-gasified and distributed through pipeline as natural gas.
