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Anwara-Fouzdarhat gas pipeline commissioning by next week

It will help improve gas supply to Dhaka, adjoining areas


FE Report | November 21, 2018 00:00:00


State-run Gas Transmission Company Ltd (GTCL) is now carrying out test operations of Anwara-Fouzdarhat gas transmission pipeline to initiate commercial operation by next week.

"We're expecting to start supplying re-gasified LNG through this pipeline by November 26," GTCL managing director Ali Mohammad Al Mamun told the FE on Tuesday.

Petrobangla is expected to fully utilise the country's maiden liquefied natural gas (LNG) import terminal with the commissioning of this pipeline.

As a result, gas supply across the country especially to Dhaka and its adjoining areas would improve significantly, he added.

Crossing the Karnaphuli was the main hurdle for completing the construction of the 30-kilometre 42-inch diameter pipeline, which the GTCL could overcome early this month.

Officials said Petrobangla has been counting 'capacity payment' for non-completion of a re-gasified LNG evacuation pipeline since the commissioning of Excelerate Energy's FSRU (floating, storage, regasification unit) on August 18.

It thus failed to fully utilise the terminal.

The state-run corporation now utilises only 50 per cent capacity of the FSRU by regasifying around 250 million cubic feet per day (mmcfd), a senior Petrobangla official said.

Even though 50 per cent capacity of the US company's vessel remains unused, Petrobangla would have to pay its full capacity, he added.

According to the deal, the daily payment Petrobangla owes to Excelerate is around $232,000 (Tk 19.72 million), no matter it regasifies less or the entire capacity of the FSRU.

Excelerate's FSRU - Excellence -- has the capacity to regasify around 500 mmcfd equivalent of LNG a day, the official said.

The delay in constructing the pipeline was the main reason for Petrobangla's loss, he added.

Currently, re-gasified LNG is being supplied to Chattogram only through the newly built 90-kilometre Moheshkhali-Anwara gas transmission pipeline.

Delay in commissioning of the Anwara-Fouzdarhat gas transmission pipeline is depriving other parts of the country of getting benefit out of LNG imports, said officials.

The Karnaphuli Gas Distribution Company Ltd (KGDCL), dedicated to Chattogram region, has currently the capacity to consume around 350 mmcfd of re-gasified LNG, in maximum, with the existing operational pipeline.

Petrobangla inked 'terminal use agreement' and 'implementation agreement' with Excelerate on the LNG terminal project, 'Moheshkhali Floating LNG Terminal,' on July 18, 2016.

The US company has started supplying re-gasified LNG from its FSRU commercially since August 18.

Petrobangla takes re-gasified LNG from the terminal on a take-and-pay basis.

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