Intraco starts supplying gas from Bhola to industries around Dhaka on Thursday

Energy

20 December, 2023, 10:05 pm
Last modified: 21 December, 2023, 12:07 am
The energy and mineral resources secretary will inaugurate the delivery of the gas in cylinders to customers, said Md Salahuddin, general manager (Planning and Development) at Sundarban Gas Company.
  • Initially, 5mmcfd of gas will be supplied to factories in Gazipur, adjoining areas
  • Industries will have to pay Tk47.60 for each unit of gas
  • Current rate for industrial gas stands at Tk30 per unit
  • Intraco will receive Tk30.50 per unit for retailing the gas

Gas from three Bhola fields is set to be transported to gas-starved industrial zones around the capital from Thursday (21 December), according to the state-owned Sundarban Gas Company Ltd.

Private company Intraco Refueling Station will supply the gas.

The energy and mineral resources secretary will inaugurate the delivery of the gas in cylinders to customers, said Md Salahuddin, general manager (Planning and Development) at Sundarban Gas Company.

Salahuddin said Intraco will initially supply around 5 million cubic feet per day (mmcfd) of gas to factories, particularly those in Gazipur and its adjoining areas, where piped-gas pressure remains low.

Intraco Managing Director Riyad Ali said, "We have already completed successful tests. Preparations have been made for the official opening [of the gas supply] from Thursday. Graphics Textile Ltd will receive the gas as the first client."

Industries will have to pay Tk47.60 for each unit of gas, whereas the current rate for industrial gas stands at Tk30 per unit. Intraco will receive Tk30.50 per unit for retailing the gas.

Shipping gas from Bhola marks the country's first-ever instance of transporting stranded gas from one region to another for consumption.

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 improve the capacity gradually to 25mmcfd.

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