Gas supply from Bhola to Dhaka’s industries in CNG form begins

Finally, Intraco, a CNG refueling station operator, started supplying natural gas to different industries in Dhaka and adjoining areas from Bhola in CNG (compressed natural gas) form.

Energy and Mineral Resources Secretary Md Nurul Amin inaugurated the launching of the supply at a function at a Dhaka hotel today.

Petrobangla chairman Janedra Nath Sarker and Intraco Group chairman Hakim Ali also spoke on the occasion.

"Initially, our gas will go to an industry in the Dhamrai area in Manikganj after bringing from Bhola," said Mohammed Riyadh Ali, managing director of Intraco Group, while speaking at the inauguration ceremony.

Earlier, Intraco signed a contract on May 21 this year with state-owned Sundarban Gas Company Limited (SGCL) to supply gas to different industries in Dhaka and adjoining areas including Gazipur and Tangail.

Under a 10-year contract, the Intraco Refuelling Station Ltd will bring the gas from southern district Bhola in CNG form by large trailers, each having 5000 cubic meters and sell it to industries at Tk 47.60 per unit (1000 cubic metre).

As per the contract, local firm Intraco Refuelling Station Ltd will initially supply 5 million cubic feet per day (mmcfd) gas and later 20 mmcfd gas to the private industries.

State-owned Bangladesh Petroleum Exploration and Production Company Limited (Bapex) is extracting gas from the Bhola field.

Both the Bapex and SGCL are subsidiaries of state-owned Petrobangla, the principal petroleum corporation, responsible for dealing with both upstream and downstream production and supply.

Officials of Intraco informed that they are purchasing per cubic metre at Tk 17 from the SGCL and selling it at Tk 47.60 per cubic metre to industries after meeting expenses of compression, transportation, and decompression.

"We're using a large cascade truck trailer to bring the gas from Bhola by road via Padma Bridge to Dhaka," said Saiful Islam Chowdhury, a top official of Intraco.

Petrobangla chairman Janedra Nath Sarker said the industries that face low pressure will get this gas to address the problem.

The Intraco Refuelling Station has been selected for the contract under the Speedy Increase of Power and Energy Supply (Special Provisions) Act, 2010.

Currently, about 2576 mmcfd gas is being supplied across the country in which 2076 mmcfd gas is being produced from 22 gas fields in the country, while about 500 mmcfd gas is being imported from abroad to meet the demand of about 4000 mmcfd, leaving a deficit of about 14024 mmcfd.

The two Bhola gas fields have around 200 mmcf production capacity, while the production hovers between 80-85 mmcf.

Therefore, around 120 mmcf surplus capacity remains unused in the eight wells of the Shahbazpur and Bhola gas fields.

Due to the lack of pipeline and transmission facilities, the government was unable to supply the surplus gas from the Bhola field to other energy-hungry industrial zones in Dhaka and elsewhere.