Govt will ask for EoI from global players to import LNG
Tuesday, 29 September 2009
M Azizur Rahman
The government will invite applications from global key liquefied natural gas (LNG) exporters next month for supplying the fuel to cope with the swelling demand of natural gas in industrial units and power plants, officials said Monday.
The Prime Minister recently endorsed a Petrobangla proposal for import of LNG to ensure that the factories and plants do not face abrupt shortage of gas supply amid fast depletion of local reserves.
"We will seek expression of interest (EoI) from the global players to import LNG and build up necessary infrastructure," Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury told the FE Monday.
A pool of companies or contractors would be selected for final assignment to build an infrastructure to store LNG in the local facility, he said.
A site has been primarily selected in South of Chittagong port on the bank of river Karnaphuli to facilitate import of LNG, re-gasify it and distribute through pipeline as natural gas, said Dr Tawfiq.
This is the first time in Bangladesh that the government will be importing LNG to meet future energy demands.
The energy adviser said the LNG import would fix the country's mounting energy crunch and allay fears of entrepreneurs that factories could face an abrupt closure if local gas supplies runs dry.
Country's Chittagong region, which has been facing the perennial energy crunch for long would be benefited much out of the LNG import.
It would help diversify the country's energy sources and cut over-reliance on natural gas being produced in local fields, he said.
More than 90 percent of Bangladesh factories and power plants are fired by locally produced gas, which is projected to diminish from 2011 and the entire reserve would dry up by 2014-2015 at current consumption rate.
"We are now at final stage in preparing documents to invite EoIs," Petrobangla Chairman M Muqtadir Ali said.
The EoI could be sought by mid of October, he hoped.
Experts said official said the country's bulk natural gas consumers like Karnaphuli Fertilser Company Ltd and Korean Export Processing Zone would be the main clients of the imported LNG.
Many industrial units that could not go into operation or business expansion due to gas crisis would also be the targeted clients, he said.
A massive expansion of industry has already led to an acute shortfall of gas in the country since late 2007, with the daily demand now hovering around 2,250 million cubic feet (mmcf) against a supply of around 1990 mmcf.
The country's proven gas reserve has fallen down to 7.3 trillion cubic feet (Tcf) from 15 Tcf due to soaring consumption. Officials said the existing gas-fields might have an extra reserve of 5.5 Tcf.
The government will invite applications from global key liquefied natural gas (LNG) exporters next month for supplying the fuel to cope with the swelling demand of natural gas in industrial units and power plants, officials said Monday.
The Prime Minister recently endorsed a Petrobangla proposal for import of LNG to ensure that the factories and plants do not face abrupt shortage of gas supply amid fast depletion of local reserves.
"We will seek expression of interest (EoI) from the global players to import LNG and build up necessary infrastructure," Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury told the FE Monday.
A pool of companies or contractors would be selected for final assignment to build an infrastructure to store LNG in the local facility, he said.
A site has been primarily selected in South of Chittagong port on the bank of river Karnaphuli to facilitate import of LNG, re-gasify it and distribute through pipeline as natural gas, said Dr Tawfiq.
This is the first time in Bangladesh that the government will be importing LNG to meet future energy demands.
The energy adviser said the LNG import would fix the country's mounting energy crunch and allay fears of entrepreneurs that factories could face an abrupt closure if local gas supplies runs dry.
Country's Chittagong region, which has been facing the perennial energy crunch for long would be benefited much out of the LNG import.
It would help diversify the country's energy sources and cut over-reliance on natural gas being produced in local fields, he said.
More than 90 percent of Bangladesh factories and power plants are fired by locally produced gas, which is projected to diminish from 2011 and the entire reserve would dry up by 2014-2015 at current consumption rate.
"We are now at final stage in preparing documents to invite EoIs," Petrobangla Chairman M Muqtadir Ali said.
The EoI could be sought by mid of October, he hoped.
Experts said official said the country's bulk natural gas consumers like Karnaphuli Fertilser Company Ltd and Korean Export Processing Zone would be the main clients of the imported LNG.
Many industrial units that could not go into operation or business expansion due to gas crisis would also be the targeted clients, he said.
A massive expansion of industry has already led to an acute shortfall of gas in the country since late 2007, with the daily demand now hovering around 2,250 million cubic feet (mmcf) against a supply of around 1990 mmcf.
The country's proven gas reserve has fallen down to 7.3 trillion cubic feet (Tcf) from 15 Tcf due to soaring consumption. Officials said the existing gas-fields might have an extra reserve of 5.5 Tcf.