State Minister for Power, Energy and Mineral Resources Nasrul Hamid said the government is going to introduce automation in the country’s gas network to ensure better management of the energy sector.
“All our gas pipelines will be automated. However, the projects needed to implement the automation process will be undertaken in the next two to three years,” he said at the inaugural session of the two-day South Asia LNG Forum 2019 at the Pan Pacific Sonargaon Dhaka Hotel on Tuesday.
“We hope this automation will lead to better management of the energy sector,” he said.
“At the same time, we have undertaken a massive project to replace the old pipelines with new ones in Dhaka at an estimated cost of Tk1,200-Tk1,500 crore,” Nasrul said.
Talking about LNG, the state minister said efforts are underway to set up a land-based LNG terminal by June 2023 to increase the re-gasification capacity of the country to 15 million tons per annum.
“Currently two Liquefied Natural Gas terminals having Floating, Storage, Re-Gasification Units (FSRU), with a capacity of 3.75 million tons per year each, are operating at Moheshkhali. The two LNG terminals are re-gasifying around 560-570 million cubic feet per day (mmcfd).
“With sustained efforts, we will get 800-900 mmcfd. However, the demand will not be fulfilled. So, we are going for onshore LNG. Meanwhile, we have gas reserves in Bhola and possibly in Mymensingh.”
Nasrul also expressed hope that by the end of this year, the country’s energy sector will reach a good position as the government has gone for mixed fuel.
“A financing plan is needed for the evaluation of gas prices for the next five to ten years.”
About the land-based LNG terminal, he said a total of 12 global firms and their joint ventures are now vying to bag the contract to build the country’s first land-based LNG terminal at Matarbari, which will handle 7.5 million tons per year (mtpa).
According to an official at the ministry, the country’s overall gas production is around 3,300 mmcfd, including LNG, against a demand of 4,000 mmcfd.
The LNG forum said importing LNG is the quickest way to meet the increasing domestic demand.
Bangladesh is well placed to join South Asia’s LNG importers’ club and is well positioned to meet LNG demand with several FSRU being penned to be deployed.