Consumers to start getting LNG from May

The government expects to start supplying imported re-gasified LNG (liquefied natural gas) to consumers from early May. 

The country's first FSRU (floating, storage, re-gasification unit) is expected to reach the LNG import terminal on April 23, secretary to the energy and mineral resources division Nazimuddin Chowdhury told the FE.

Prime Minister Sheikh Hasina is likely to inaugurate the commissioning of the FSRU, thus clearing the way for supplying re-gasified LNG to the gas grid on April 25, he said.

The US-based Excelerate Energy Bangladesh Ltd is expected to carry around 130,000 cubic metre of lean LNG with the floating re-gasification unit's vessel.

Excelerate is now at the final stage of constructing the LNG terminal, having a capacity to re-gasify 3.75 million tonnes a year of LNG on the Moheshkhali island in the Bay of Bengal.

Excelerate's unit will carry the first LNG for Bangladesh acting as a cargo as well, said managing director with the state-run Rupantarita Prakritik Gas Company Ltd Md Quamruzzaman.

The first LNG cargo could supply re-gasified LNG for around 15-20 days, he said.

Qatar's RasGas would start supplying LNG cargo after carrying around 130,000cm of LNG, Mr Quamruzzaman said.

The country would solely depend on RasGas's LNG as it has not yet entered any sales-and-purchase agreement with other suppliers other than the Qatari company.

He, however, expressed the hope that agreements with several other suppliers and master sales deals with around half a dozen of spot LNG suppliers would be signed in the next couple of months.

The government has planned to supply the re-gasified LNG initially to the port city of Chittagong, the nearest city from the Excelerate terminal where the natural gas crisis is acute, said Petrobangla chairman Abul Mansur Md Faizullah.

Consumers from other parts of the country would also benefit as well after the start of re-gasified LNG supply, he said.

Existing natural gas supply to Chittagong from the country's gas-rich northern parts would be reduced by 200 million cubic feet a day (mmcfd) to feed other areas, especially the capital and its adjoining areas, he added.

The government has planned to resume piped natural-gas connections to all consumers but households with the imported LNG, the Petrobangla boss said.

"We are now scrutinising every aspect for readying the domestic market to feed the re-gasified LNG," he said.

The power sector is expected to consume the bulk of re-gasified LNG, Mr Faizullah said.

For household consumption, the government has moved to expand the use of LPG instead.

Currently, consumers including power plants and industries of Chittagong have the capacity to consume the maximum 350 mmcfd of re-gasified LNG, a senior official of Karnaphuli Gas Distribution Company Ltd (KGDCL) said.

Karnaphuli is responsible for supplying piped natural gas to consumers in Chittagong, Rangamati, Khagrachari, Bandarbans and Cox's Bazar districts of Bangladesh.

The newly-constructed natural gas pipeline from Moheshkhali to Anwara, with a capacity of up to 800,000 mcf a day will be facilitating to carry re-gasified LNG to Chittagong, managing director of the state-run Gas Transmission Company Ltd (GTCL) Md Atiquzzaman said.

The transmission agency is now constructing a new gas transmission pipeline between Anwara and Fouzdarhat to carry re-gasified LNG beyond the Chittagong region, he said.

Rising LNG imports will help bridge the gap between gas production of around 2,600 mmcf a day and domestic demand for around 3,300 mmcf a day.

Petrobangla inked its first sales and purchase agreement with Qatar's RasGas in September for the annual delivery of 2.5 million tonnes of LNG over 15 years.

The country is in talks with four other suppliers for long-term deals and is also eyeing short-term and spot purchases.

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