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The government is set to approve a proposal for supplying gas in compressed form from the newly discovered well at the Bhola gas field to the industrial units suffering from the energy shortage in Dhaka and elsewhere across the country.
The cabinet committee on economic affairs (CCEA) is expected to approve a proposal of the Energy and Mineral Resources Division (EMRD) in this regard at its meeting today (Thursday), with Finance Minister AHM Mustafa Kamal in the chair, officials said.
They said the EMRD would then sign deals with interested entrepreneurs who will convert natural gas into compressed natural gas (CNG) and supply it to the industrial units.
The government has initiated the move to utilise the surplus gas stranded at the less-consuming island district at a time when the country is suffering from severe gas shortage, hindering power generation and industrial production as well as household usage.
Petrobangla has estimated that the country would face a shortage of around 1,000 MMCFD of gas during the ongoing high-demand season despite the government having increased gas imports in liquefied form in recent times.
Official sources said four companies have expressed their interests to do the business. However, Petrobangla has initially selected Intraco CNG for the job.
If Intraco becomes successful, other interested companies will also be given the opportunity gradually, they said.
According to Petrobangla officials, the nine wells in Bhola have a total capacity to supply 120 million cubic feet per day (MMCFD) of gas - local power producers and others consume some 86 MMCFD.
At an event in January last, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said some 20 MMCFD of gas could be supplied to Dhaka and elsewhere if it can be converted into CNG.