The government plans to resume piped natural-gas connections to all consumers but households from next month with the start of expensive LNG (liquefied natural gas) import.
Already, according to officials, it has opened up new connections for industries, and the state-run gas- marketing and-distribution companies have initiated moves to complete all relevant formalities beforehand.
The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) has also moved to lift the ban on providing piped natural-gas connections to captive power plants.
Scores of compressed natural gas (CNG) filling stations that remained inoperative only due to gas crisis might get a new lease of life with LNG import, aimed at making the fossil fuel available to all.
Suspension of natural-gas connections to commercial consumers is also planned to be withdrawn under the government plan.
"We are now scrutinising every aspect for readying the domestic market to feed new fuel -- LNG -- to the consumers, which is set to be imported to the country for the first time in April," chairman of the state-run Petrobangla Abul Mansur Md Faizullah told the FE Monday.
He said scores of gas-fired power plants and fertiliser factories that have long remained closed or faced frequent closure due to gas crisis would be on top priority in getting the imported re-gasified LNG.
"All types of consumers, excepting households, would get piped-gas connections after LNG import," he said.
For household consumption, he added, the government has yet to reach any decision over resumption of gas connection.
The government has alternatively moved to expand the use of LPG (liquefied petroleum gas) in households for cooking, said officials.
But all the new consumers of piped gas might have to count double the costs compared to the existing natural gas tariffs as Petrobangla has moved to raise its rates with the start of LNG import.
Petrobangla may place a formal proposal with Bangladesh Energy Regulatory Commission (BERC) this week for raising the tariffs and the hike could come into effect after a public hearing and a verdict from the energy regulator, the Petrobangla chairman said.
US-based Excelerate Energy Bangladesh Ltd is now at the final stage of constructing the FSRU-based LNG terminal, having the capacity to re-gasify 500mmcfd equivalent of LNG, to facilitate the import of LNG from April 25.
The state-run Gas Transmission Company Limited is now on concerted efforts to complete necessary infrastructures, including gas-transmission pipelines, for smooth supply of re-gasified LNG to consumers, GTCL managing director Md Atiquzzaman told the FE.
Although gas connections to industries are open, the units inside the country's economic zones (EZs) would get priority in getting new connections, the Petrobangla top brass said.
"The government would discourage piped-gas connection to industries outside the EZ areas to ensure the maximum utilisation of the resource," Mr Faizullah said.
Country's overall natural gas production is hovering around 2,650 million cubic feet per day (mmcfd) against the known demand for around 3300mmcfd, according to Petrobangla.
The government has stopped providing piped natural-gas connections to household and commercial consumers to make do with the short supply of natural gas.
The shortage has prompted Petrobangla to ration new supplies to industries, fertiliser factories and power plants since June 2009, resulting in the stymieing of country's economic growth.
Officials said the government aims to import LNG to the tune of around 1,000mmcfd by October 2018 as its first LNG-import terminal, a 3.75-million- tonne-per-year (Mtpa) FSRU (floating storage and re-gasification unit) being developed by Excelerate Energy, is expected to be commissioned in April and its second FSRU, also having the same capacity, developed by Summit Group, is expected to be commissioned by October.
Petrobangla on Sept 25 inked country's first-ever sales-and-purchase agreement (SPA) with Qatar's RasGas to buy 2.5Mtpa lean LNG over 15 years. The petroleum agency recently initialed two separate deals with Oman's state-run enterprise Oman Trading International and Switzerland-based private-firm AOT Energy AG to import around 2.25Mtpa LNG.
It also inked a letter-of-intent (LOI) deal with Indonesia's Petramina to import another volume of 1.0Mtpa gas early last month.
Gunvor Singapore Pte Ltd is among several other firms that entered into MoU (memorandum of understanding) with Petrobangla to supply LNG to Bangladesh under term deals.
