Supply of Bhola's gas in CNG form starts

Stranded natural gas from Bhola Island has started feeding gas-starved industries in and around Dhaka as its supply in compressed form was inaugurated on Thursday.

This is the first time in Bangladesh that gas is being transported in CNG (compressed natural gas) form using cars, according to state minister for power, energy and mineral resources Nasrul Hamid.

This is, however, in practice in many countries of the world, he told the inaugural function at a city hotel.

The government has planned to build a Bhola-Barishal gas transmission pipeline at a cost of around Tk 15 billion to carry Bhola's gas through pipes in future, he said.

This gas will then be transmitted to Khulna and other southwestern and eastern districts of the country, the state minister also said.

To this effect, a feasibility study is now being carried out, he mentioned.

Discussions are also going on to supply Bhola's gas to residential customers at the local level, Mr Hamid added.

Speaking on the occasion, Energy and Mineral Resources Division Secretary Md Nurul Amin said initially around 5.0 million cubic feet per day (mmcfd) of gas will be supplied in CNG form from Bhola.

The industries in Dhamrai and Manikganj areas will get the gas initially, said Intraco Group Managing Director Mohammed Riyadh Ali while addressing the function.

Earlier, the Intraco Refuelling Station Ltd inked a deal with state-run Sundarban Gas Company Ltd (SGCL) in May to obtain natural gas from SGCL and then compress it for sales to consumers.

The company has the authority to select consumers and many industry owners have queued up with the company to secure gas supplies as soon as possible, said a senior official of state-run Titas Gas Transmission and Distribution Company Ltd.

The company will provide Bhola's gas in CNG form to industries within the Titas franchise areas, where gas pressure typically remains low on most of the day.

Industry owners will have to purchase Intraco's gas at the government-fixed rate of Tk 47.60 per cubic meter, which is 58.66 per cent higher than the usual gas tariff of Tk 30.

The Intraco will receive Tk 30.50 per cubic meter for its sales of Bhola gas to industries in CNG form, as it will procure Bhola gas from the government at Tk 17.10 per mcf.

Sources said there are three producing gas fields on Bhola Island with a total production capacity of around 200 mmcfd.

However, production is limited to around 70 mmcfd due to a sluggish demand in the area.

Around 120 mmcfd of surplus gas currently remains unused and trapped in Shahbazpur, Bhola and Ilisha gas fields.

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