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Ministry mulls gas pricing projection for investors

FE Report | Published: August 07, 2019 10:39:04 | Updated: August 08, 2019 10:57:05


Photo collected from internet has been used for representational purpose only

The government is contemplating a pricing projection of natural gas over the next five to 10 years to help businesses chalk up their future investment.

"This projection will help investors adopt long-term fiscal planning," said state minister for power, energy and mineral resources Nasrul Hamid on Tuesday.

He was speaking as the chief guest at the inaugural session of the two-day South Asia LNG Forum 2019 at a city hotel.

Mr Hamid asked the top officials of the state-run Petrobangla to initiate work on the pricing projection.

'Utilising natural gas and LNG through infrastructure development and distribution to meet increasing demand for power' is the theme of this conference.

The junior minister said the government has been working to ensure gas supply at affordable costs.

"Currently, we're able to meet the requirements of natural gas," he added.

The overall gas supply would increase by the end of this year when the two operational floating units supply 800-900 million cubic feet per day (mmcfd) of regasified LNG.

Mr Hamid said the government would build a new land-based LNG (liquefied natural gas) import terminal to meet the mounting gas requirements.

The neighbouring India is also interested in supplying liquefied gas here.

Bangladesh has already expedited its work on onshore explorations to boost supplies from local gas fields.

New natural gas reserve has also been found in Bhola, the minister said, citing prospects of gas in Madaripur and Mymensingh.

To keep gas prices affordable, he said, the government would continue blending regasified LNG with locally produced gas.

Currently, the government has been importing LNG from Qatar and Oman.

LNG will also be sourced from spot market to keep its prices reasonable.

Some 22 institutions from 16 countries are taking part in this forum with some 40 energy experts.

Mohammad Hossain, director general of power cell, presented a keynote paper on the crucial role of natural gas and LNG for power in Bangladesh.

azizjst@yahoo.com

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