Govt works for ensuring energy security: Nasrul Hamid

Sincere and relentless efforts are underway to ensure smooth energy supply in the country’s industries, as well as others aimed at boosting the economy, according to an official of the ministry familiar with the process.

As part of these efforts, the government has decided to purchase liquefied natural gas (LNG) from different sources to ensure energy security in the country, as the demand for energy is increasing day by day, he added.

Speaking to BSS, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid said the government will purchase LNG from the spot market due to the low price right now.

He said that the government has been continuously buying LNG for the past few months from different companies as Master Sale and Purchase Agreements (MSPA) were signed under the Rapid Expansion of Power and Energy (Special Provisions) Act, 2010 (Amendment 2021).

“We usually buy a major portion of gas under a long-term agreement and the rest portion of gas from spot market. The gas price under a long-term agreement is now around $10-12, which is always the same,” Nasrul Hamid said.

He said the spot market LNG price sometimes goes up and sometimes goes down, adding, “But now we bought per MMBtu LNG at a cost of $9.770.”

Earlier, Cabinet Division additional secretary Sayeed Mahbub Khan said Petro Bangla would procure one cargo LNG from M/S Gulberg Singapore Private Limited with around Tk 4.25 billion (Tk 425.82 crore) while the Petrobangla would procure another one cargo LNG from M/S Gulberg Singapore Private Ltd with around Tk 4.25 billion (Tk 425.82 crore) where per MMBtu LNG would cost $9.847.

Besides, in another proposal, Petrobangla would procure another one cargo LNG from M/S Vitol Asia Private Limited, Singapore for around Tk 4.22 billion (Tk 422.49 crore) whereas per MMBtu LNG would cost $9.770.

Meanwhile, Prime Minister Sheikh Hasina gave approval for procuring some 13 cargo LNG from the spot market from January to June 2024, where four cargo LNG would be required by March.

The state minister said, “We think we need a lot of gas during the upcoming summer season. We have to keep the gas-based power plants running. Apart from this, we are extracting our own gas fields.

Another thing is that we were supposed to buy a compressor for the Srikail gas field. We have floated tenders for around a year.

If we have the lowest bidder, then we can adjust the low pressure of the gas field at Srikail.”

He said that the government is committed to ensuring energy security in the country. “The overall price of oil and gas has increased in the global context, so it is very difficult to maintain energy security.

But efforts are underway to ensure energy security."

Nasrul Hamid said the government has taken measures to increase the supply of liquefied petroleum gas (LPG) as some 80 per cent of the residential consumers are now using this liquefied gas.

He said that the government recently discovered an oil reserve at the first layer of the Sylhet-10 gas well in the country. The reserves will be able to produce 500-600 barrels per day. About 35 barrels of oil flow are available per hour right now.

Nasrul Hamid said that in total, four layers of reserve oil have also been discovered, and the oil reserves could last 15 years. The average price of oil is around Tk 85 billion (Tk 8,500 crore). Besides, the well produces gas at 20 million cubic feet per day and will be usable for 15 years.