Bangladesh's gas reserves will last till 2031, says State Minister for Power, Energy and Mineral Resources Nasrul Hamid.
“Currently, the reserves [till Jan 1, 2020] stand at 10.63 trillion cubic feet with a 2.57 billion cft being extracted daily. If the current rate is maintained, the reserves can be used for 11 more years, which means 2031,” he told parliament during the question-and-answer session on Monday (Jan 20).
Replying to a query, Nasrul, currently, the amount of daily gas supply including imported liquefied natural gas (LNG) stands at 3.16 billion cft.
The government has fixed the price of a12.5-litre cylinder of liquefied petroleum gas (LPG) at Tk 700. However, the retail price stands between Tk 950 and Tk 1,000, he told the House.
According to the minister, gas is liquefied in low pressure [240 pound per square inch] for cylinders used in households, which poses less risk of explosion.
On the other hand, LPG cylinders used in vehicles are prone to explosion as the pressure is high -- 3000 pound per square inch.
Lack of awareness and sub-standard cylinders are behind accidents, Nasrul said.
As the domestic gas supplies fall, Bangladesh has moved to import LNG.
Bangladesh’s annual imports of LNG could nearly triple to at least 10 million tonnes over the next three to four years, Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister, told Reuters in September last year.
In September 2019, the state-run Petrobangla shortlisted 17 companies for its spot tender process as it plans to buy around 1 million tonnes of LNG in 2020.
Two months later, Bangladesh Power Development Board signed a deal with Saudi Aramco and Riyadh-based ACWA Power to develop a 3,600-megawatt LNG-based power plant and terminal in the country.
“Aramco will indeed supply the LNG. The source of LNG is Aramco. In addition, they will build the LNG terminal to store the LNG. ACWA will build the power station to convert LNG to power,” Prime Ministers Adviser for Private Industry and Investment Salman F Rahman told Reuters.
The power plant and an onshore regasification terminal could be built in the Moheshkhali area in Cox’s Bazar or an alternative location, upon completion of a feasibility study, according to Reuters .
Bangladesh currently has two floating storage and regasification units (FSRUs) with a total regasification capacity of 1 billion cubic feet per day - equal to about 7.5 million tonnes a year.
It is also building a land-based terminal that can handle 7.5 million mtpa of LNG, expected to be ready in five years.
Petrobangla already imports about 300-400 million cubic feet per day of LNG - equivalent to 3.5 million tonnes a year in total - through two long-term contracts with Oman and Qatar.
Bangladesh has a 10-year LNG import deal with Oman Trading International. That LNG is priced at 11.9 percent of the three-month average price of Brent crude oil plus a constant price of 40 cents per million British thermal units (mmBtu).
Under its 15-year deal with Qatar, Bangladesh pays 12.65 percent of the three-month average price of Brent oil plus a constant of 50 cents per mmBtu.