Photo: Collected
As the demand for gas in the country continues to grow exponentially, domestic gas production is dwindling at an alarming rate. While concerted efforts are underway to bolster domestic gas production, the sector has become increasingly reliant on imported liquefied natural gas (LNG), an expensive alternative.
However, government officials believe that importing LNG is the only hope as demand continues rising. Otherwise, there will be stagnation in the power sector and other industries.
According to the Power Development Board (PDB), 60 percent of the country's power plants are gas-based, 11.40 percent coal-based, 11.79 percent import electricity from India, and 20.72 percent use furnace oil.
State Minister for Power Energy and Mineral Recourse Nasrul Hamid Bipu told The Daily Messenger, “All efforts are being made to increase the supply of gas from domestic sources. Though, there are also challenges. We have already signed agreement with LNG companies which will activate from 2026.”
The average gas production in April was 2,050 million cubic feet, while LNG imports averaged 600 million cubic feet, totaling a daily supply of 2,650 million cubic feet. However, the daily shortfall against demand is about 1,400 million cubic feet, disrupting cost-effective power generation, according to state-owned company Petrobangla.
However, the government has taken into consideration importing liquefied natural gas (LNG) in view of the decline in gas production. For this reason, contracts are being made with countries that build LNG terminals and sell LNG, said Energy Division officials.
Infrastructure for importing 1,000 million cubic feet of LNG has already been installed. The government is moving ahead with plans to sign agreements with various private companies to build infrastructure for importing at least another 3,000 million cubic feet of LNG.
The government has already signed several agreements to import LNG and approved two more LNG terminals, and is considering proposals for another LNG terminal.
According to Petrobangla, the daily production and import gap will be 940 million cubic feet in 2024-2025, 1,405 million cubic feet in 2026, 1,830 million cubic feet in 2027, 2,130 million cubic feet in 2028, 2,130 million cubic feet in 2029, and 2,555 million cubic feet in 2030. During this period, gas production or supply from domestic sources will average between 1,800 to 2,100 million cubic feet.
However, gas demand will reach 7,758 million cubic feet per day (MMCF) by 2040-2041. At that time, domestic production will decrease to 1,694 million cubic feet. The daily gas shortfall of 6,064 million cubic feet will be met by LNG imports.
Messenger/Disha
