Cross-border pipeline to bring LNG from India

The government is in the process of importing Liquefied Natural Gas (LNG) from India to meet the country’s gas shortage.

LNG will be imported from Dhamara LNG terminal in India’s Odisha via Satkhira in Bangladesh.

The 30-inch radius pipeline will bring 300 mmcfd (million cubic feet per day) of LNG. The total length of the pipeline is under discussion.

To this end, the state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL) is preparing a proposal, which will soon be sent to the energy division, officials with knowledge on the matter said.

Petrobangla Chairman (Acting) Nazmul Ahsan told the Business Insider Bangladesh that importing LNG from India through the pipeline would be cost-effective.

“RPGCL has been asked to prepare a proposal. After receiving the proposal, discussions will start with India in this regard,” he said.

The energy division held a meeting on LNG last November chaired by Md Anisur Rahman, senior secretary, Energy and Mineral Resources Division, said an official of the division.

In the meeting, Gas Transmission Company Limited (GTCL) informed that LNG supply must be ensured to provide uninterrupted gas in the country. For this, the cross-border pipeline through Satkhira will be constructed.

During the meeting, Md Anisur Rahman directed RPGCL to look into the feasibility of importing LNG from India through Satkhira cross-border pipeline for supplying gas to power plants in Khulna.

Also at the meeting, RPGCL Managing Director Zaved Choudhury said the necessary information would be sent to the energy division soon after analysing the financial issues regarding the import of LNG from India through the pipeline.

However, Choudhury could not be reached for further comment on the matter.

According to energy division and Petrobangla officials, the current gas supply in the country is only one-third of the demand. This deficit is likely to remain at least until the first week of February due to the closure of an LNG terminal.

In this situation, the government has resorted to rationing to keep the gas supply normal. Even then, the supply is being disrupted across the country including vital industries.

RPGCL Director (LNG) Rafiqul Islam told the Business Insider Bangladesh that India has an LNG terminal in Odisha, from there LNG will be brought to Bangladesh through Satkhira using cross border pipeline.

“We are in the early stages of constructing a Bangladesh-India LNG terminal. Feasibility study and financial proposal processing are underway. Hopefully, we will be able to finish this work this month,” he said.

According to Petrobangla’s annual report for the current 2021-22 fiscal year, at present 58.29 percent of the total gas supply in Bangladesh is used in the power sector. Of this, 19.06 percent in captive power plants and 39.22 percent in grid electricity.

Of the total gas consumed in the non-power-sector, industries use 18.02 percent, households 13.19 percent, fertiliser factories 6.36 percent, CNG (Compressed Natural Gas) 3.45 percent, commercial sector 0.48 percent, small and cottage industries 0.11 percent, and tea industry 0.10 percent.

According to Petrobangla’s gas production and supply figures on January 6, the demand for gas on the day was 2,252 mmcfd against the supply of 762.07 mmcfd.