LNG imports likely to increase

The country's energy mix will be dominated by liquefied natural gas (LNG) in the future, according to the plan of Petrobangla, the flagship organisation for supplying the primary fuel.

Petrobangla Chairman Zanendra Nath Sarker yesterday said they have plans to increase LNG imports.

"The demand for gas is increasing every day. We have planned to increase gas production from local sources, but it will not be sufficient to meet the demand," he said at a views-exchange programme with reporters at his office.

Petrobangla had the plan to explore and work on a total of 46 gas wells in three years.

"We have reduced the duration and decided to drill those wells within the next two years. But if we find gas in any of those wells, it will need at least three years to supply gas from these sources after building the process plant. If we find gas in offshore sources [below the ocean floors], it will take at least 8 to 10 years," said the Petrobangla chair.

Sarker also mentioned that they have plans to build three LNG terminals as well.

The country has two floating re-gasification terminals in Cox's Bazar's Moheshkhali, which are being operated by Summit Group and Excelerate Energy.

"We are in talks with Excelerate Energy to build another floating terminal in Patuakhali's Payra and with Summit to build another in Moheshkhali. The country's first land-based re-gasification terminal will be built in Moheshkhali, which is waiting for PDB's consent."

In addition, Petrobangla is working to explore a new source of LNG import. "We have long-term contracts with Qatar and Oman and are trying to sign two new deals. The quantities and prices are yet to be set."

Due to a massive hike in LNG prices in the spot market, the government suspended LNG purchases for seven months last year, which resumed in February. "We will purchase at least 12 LNG cargo from the spot market till June as the price is now comparatively lower."

Currently, the gas demand in the country is around 4,000 million cubic feet a day (mmcfd), out of which, Petrobangla can supply around 2,900 mmcfd from local sources and imports. "The demand will reach 5,600 mmcfd in 2030," said Sarker.