In a first for Bangladesh, gas from Bhola reaches Gazipur for industrial usage

For the first time in Bangladesh's history, gas extracted from the Bhola gas field has been transported into another region of the country for industrial usage by converting it into compressed natural gas (CNG).

The first batch of cylinders filled with Bhola's gas reached a garments factory in Gazipur on Thursday, authorities said, adding that this marks the country's first-ever instance of transporting from one region to another for consumption.

Authorities are also planning to supply the gas in this method to other parts of the country, including Dhaka, the southwestern and northern parts, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said after the inauguration of the official gas supply from Bhola in Hotel Pan Pacific Sonargaon on the day.

"This gas will be used in the industry primarily by bringing it in the form of CNG by trucks. In addition, a gas pipeline will be built from Bhola to Barishal in the future, and from there, a transmission line will go to Khulna. The southwestern and northern regions of the country will also be covered by this gas," he said on the occasion.

According to Hamid, this is the first time gas will be transported as CNG using trucks in Bangladesh. The method is practised in many countries of the world.

"The cost will be cheaper than [transporting gas] using a pipeline. Gas can be supplied in this way at a lower cost and faster than supplied by a pipeline.

"Long-term and short-term plans have already been developed for using gas from Bhola. Once the short-term plan is complete, we will move on to implement the long-term one," he added.

The state minister further said supplying Bhola's gas to residential consumers at the local level is being discussed as well.

"The gas is already being supplied to the industry. I hope that the residents will get it too," he said.

Meanwhile, industries will have to pay Tk47.6 for each unit of gas, whereas the current rate for industrial gas stands at Tk30 per unit. Intraco will receive Tk30.5 per unit for retailing the gas.

According to information disclosed by authorities, each of the cylinders, filled with 3,500 cubic metres of gas, is being transported by special trucks.

Speaking at the inauguration ceremony, Energy and Mineral Resources Division Secretary Nurul Alam said, "From now on, 50 lakh cubic feet of gas will be supplied per day. This is just the beginning of Bhola's gas supply. It will be further extended step by step."

He also said efforts are being made to increase gas production in the country by digging more wells in a bid to reduce LNG imports which will bring economic benefits.

Zanendra Nath Sarker, chairman of the state-owned gas company Petrobangla, said gas production is being ramped up to meet the country's demand. New wells are being dug while LNG imports are being increased.

Besides, he added that importing gas from India through pipeline is being considered.

The supply of gas from Bhola is being overseen by private company Intraco. 

Riyad Ali, manager of Intraco Refuelling Station PLC, the company responsible for supplying gas from Bhola, said trial supply of Bhola's gas had begun earlier. 

"There was  a little delay in starting the supply officially due to various reasons, including the rainy season, unfavourable weather."

HM Hakeem Ali, chairman of Intraco Refueling Station Plc, presided over the function.

Intraco is tasked with the delivery of Bhola gas under a 10-year contract with the Sundarban Gas Company and Titas Gas Transmission and Distribution Company Ltd signed on 21 May this year.

Officials said Intraco plans to augment its CNG supplies to industries by an additional 20mmcfd within the next one year.

This much-needed relief comes against the backdrop of an ongoing inconsistent gas supply as the country's overall natural gas production has plummeted by nearly one-third.

According to state-owned Petrobangla, the overall natural gas output on 28 November was around 2,598mmcfd, which is around 30.5% lower than Bangladesh's overall production capacity of 3,716mmcfd.

The three Bhola gas fields have around 200mmcfd production capacity, while the production hovers between 80 and 85mmcfd.

In addition, around 120mmcf of surplus capacity remains unused in the nine wells of the Shahbazpur, Bhola, and Ilisha gas fields.

Considering the outcry of various industries starved of energy, the authorities initiated the plan to fetch 80mmcf of gas in compressed form from the Bhola gas fields.

As per the contract, Intraco would be supplying 5mmcfd initially and then improving the capacity gradually to 25mmcfd