Dhaka,  Tuesday
25 February 2025

ADDRESSING GAS CRISIS IN INDUSTRIES

Govt mulls supplying CNG from non-grid fields

Jannatul Ferdushy

Published: 03:38, 13 October 2023

Govt mulls supplying CNG from non-grid fields

Photo : Messenger

In an attempt to address the gas crisis in the industrial sector, the government is exploring the possibility of supplying Compressed Natural Gas (CNG) from non-grid gas fields, with a particular focus on the Zakiganj region in Sylhet following the Bhola incident. Although the move is yet to receive official endorsement, State Minister for Power, Energy, and Mineral Resources, Nasrul Hamid, has indicated that they are considering Intraco Refueling Station PLC to be entrusted with this project.

The junior minister told The Daily Messenger, "Due to a lack of pipelines, gas cannot be extracted from Zakiganj. It was decided in principle when the matter came up following a proposal by Intraco. Now they have been asked to submit detailed proposals. After the submission of the proposal, we can discuss the price.”

CNG is another form of natural gas that is lighter in weight than air. It is compressed under pressure, liquefied, and stored in tanks. Nonetheless, significant efforts are underway to extract 5 million cubic feet per day (mmcfd) of gas from Bhola in the form of Compressed Natural Gas (CNG) to alleviate the gas crisis. Petrobangla has recently entered into an agreement with Intraco Refueling Limited for this purpose. Intraco will be responsible for transporting gas from Bhola and distributing it to the western regions of Dhaka.

Under the agreement, Intraco will be charged Tk 30.60 per cubic meter of gas, which contrasts with the Tk 18.02 rate paid by large industrial plants for pipeline gas. It's important to note that the price of gas from Bhola is Tk 47.60, reflecting the unique circumstances of this supply.

Former member of the Bangladesh Energy Regulatory Commission (BERC) and energy expert, Maqbul-E-Elahi Chowdhury, expressed his views to The Daily Messenger, stating that gas could have been sourced from Rashidpur before turning to the non-grid areas of Bhola and Zakiganj. He believes that the project could have been completed within 2-3 months, emphasising the absence of risks associated with bringing gas from Rashidpur and the potential for uninterrupted supply. Furthermore, he expressed surprise that this gas resource has remained untapped for so long, considering that it would have been more cost-effective.

The supply of gas in the form of CNG is still in the planning stage and has not been implemented yet. An agreement was signed with Intraco to transport a surplus of 25 million cubic feet of gas daily from the Shahbazpur gas field in Bhola in the form of CNG. The reason for considering CNG is the lack of pipeline infrastructure to bring this surplus gas from Shahbazpur. Intraco will be responsible for transporting the gas from Bhola and supplying it to industries in need.

Prime Minister's Adviser on energy and mineral resources, Tawfiq-e-Ilahi Chowdhury, said that this gas will be supplied to those areas where the gas crisis is severe. It will not only increase the supply but also eliminate the crisis.

On the other hand, in June 2021, the state-owned company Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) discovered the gas field in Zakiganj. It has been announced as the 28th gas field of Bangladesh. The pressure inside the well is 6,000 psi (per square inch), and the floating pressure is more than 13,000.

Around 68 BCF (billion cubic feet) of gas reserves are estimated in four layers. BAPEX expects to deliver 12 million cubic feet of gas per day from the well.
Even if BAPEX discovers the gas field, it will not be able to sell it to the public. Sylhet regional distribution company Jalalabad Gas Transmission and Distribution System Limited (JGTDSL) will sell the gas.

JGTDSL General Manager (Planning and IT Division), Engineer ABM Sharif, said that several letters have been sent seeking Petrobangla's decision regarding pipeline construction. The decision is pending. Further action will be taken after receiving instructions from Petrobangla. A 40 km pipeline is planned from Zakiganj to Golapganj.

In response to a question, he mentioned that it would require approximately 18 months to complete the pipeline installation process after obtaining the necessary approvals. The pipe supply company would be expected to take around one year to provide the required materials, and the actual installation might take approximately six months. Notably, this project is relatively straightforward as it does not involve major river crossings.

A total of 29 gas fields have been identified in the country. The proved reserves in these fields are estimated to be approximately 20.55 trillion cubic feet (tcf), with potential and probable reserves estimated at around 8 tcf. As of the current extraction data, approximately 19 tcf of gas has already been extracted from these reserves.

Messenger/Sajib