Full LNG supply from today

The government has decided to increase the supply of gas from February 9 to meet the increasing demand from industries. With summer approaching, the gas demand will shoot up after a relatively subdued winter requirement, according to sources. The graan signal has been given from the highest policymaking level to utilise the full potential of liquefied natural gas (LNG) and add it to the energy mix to maximise the gas supplied to the grid line. “We have directed the authorities concerned to continue the LNG supply up to 500mmcf from 260 mmcf,” Nasrul Hamid, state minister for energy and power, told the The Independent yesterday.

As per the instruction, Petrobangla, the state-owned oil and gas corporation, will start supplying 450–500 million cubic feet (mmcf) of LNG per day, with power plants and industries getting the top priority.

As of now, 260 mmcf of LNG is brought and added to the national grid  through the country’s first floating, storage and regasification unit (FSRU).

Excelerate Energy brought the first shipment of LNG from Qatar to Moheshkhali in the country.

Sources said that to ensure uninterrupted supply of LNG to the national grid, the government could take a loan of USD 50 million either from the Standard Chartered Bank (SCB) or from the International Islamic Trade Finance Corporation ( ITFC).

“Owing to the ongoing dollar crisis, we are interested in taking a USD 500- million loan from an international agency. But the bank or agency is yet to be finalised,” said a Petrobangla official.

Sources said SCB officials were lobbying for the landing proposal and had already met the state minister for energy and power in this connection.

The current supply of gas into the national grid line is 2,974 mmcf, even though the existing transmission network has a capacity of 3,260 mmcf. However, the current demand is over 4,000 mmcf.

“We carried out a test last month with the full capacity of 500 mmcf of LNG supply to the national grid and got positive results. So, there should be no difficulty in increasing the LNG supply,” said a government official.

The much-awaited commercial LNG supply was first injected into the Karnaphuli Gas Distribution Company Limited (KGDCL) gas pipe line on August 18, 2018. "The preliminary supply amount would be 50 mmcfd,” said an official of the Gas transmission Company Limited.

Bangladesh entered a new era in the energy sector when it received the first consignment of LNG in the gridline.

Petrobangla imports LNG from Qatar and Oman with a deal of stand by letter of credit (SBLC). For this, Petrobangla has to pay one-sixth of the total bill at the time of opening the LC. After the delivery, the invoice is created to pay the bill.

The country’s gas fields have already started depleting as forecasted, and the entire gas reserve will be exhausted within the next eight to nine years.

At present, the country has 23 gas fields at different locations. Many of them, including Roopganj and Sebutang, have been closed down. Right now, Petrobangla supplies 2,974 mmcf of gas every day to the national grid. Out of

that, the power sector consumes 992 mmcf of gas per day.  The government official said the power demand will increase by 50 per cent during summer because of the high gas demand for power generation.

 

Full LNG supply from today

The government has decided to increase the supply of gas from February 9 to meet the increasing demand from industries. With summer approaching, the gas demand will shoot up after a relatively subdued winter requirement, according to sources. The graan signal has been given from the highest policymaking level to utilise the full potential of liquefied natural gas (LNG) and add it to the energy mix to maximise the gas supplied to the grid line. We have directed the authorities concerned to continue the LNG supply up to 500mmcf from 260 mmcf, Nasrul Hamid, state minister for energy and power, told the The Independent yesterday. As per the instruction, Petrobangla, the state-owned oil and gas corporation, will start supplying 450500 million cubic feet (mmcf) of LNG per day, with power plants and industries getting the top priority. As of now, 260 mmcf of LNG is brought and added to the national grid through the countrys first floating, storage and regasification unit (FSRU). Excelerate Energy brought the first shipment of LNG from Qatar to Moheshkhali in the country. Sources said that to ensure uninterrupted supply of LNG to the national grid, the government could take a loan of USD 50 million either from the Standard Chartered Bank (SCB) or from the International Islamic Trade Finance Corporation ( ITFC). Owing to the ongoing dollar crisis, we are interested in taking a USD 500- million loan from an international agency. But the bank or agency is yet to be finalised, said a Petrobangla official. Sources said SCB officials were lobbying for the landing proposal and had already met the state minister for energy and power in this connection. The current supply of gas into the national grid line is 2,974 mmcf, even though the existing transmission network has a capacity of 3,260 mmcf. However, the current demand is over 4,000 mmcf. We carried out a test last month with the full capacity of 500 mmcf of LNG supply to the national grid and got positive results. So, there should be no difficulty in increasing the LNG supply, said a government official. The much-awaited commercial LNG supply was first injected into the Karnaphuli Gas Distribution Company Limited (KGDCL) gas pipe line on August 18, 2018. The preliminary supply amount would be 50 mmcfd, said an official of the Gas transmission Company Limited. Bangladesh entered a new era in the energy sector when it received the first consignment of LNG in the gridline. Petrobangla imports LNG from Qatar and Oman with a deal of stand by letter of credit (SBLC). For this, Petrobangla has to pay one-sixth of the total bill at the time of opening the LC. After the delivery, the invoice is created to pay the bill. The countrys gas fields have already started depleting as forecasted, and the entire gas reserve will be exhausted within the next eight to nine years. At present, the country has 23 gas fields at different locations. Many of them, including Roopganj and Sebutang, have been closed down. Right now, Petrobangla supplies 2,974 mmcf of gas every day to the national grid. Out of that, the power sector consumes 992 mmcf of gas per day. The government official said the power demand will increase by 50 per cent during summer because of the high gas demand for power generation.