The government is likely to allow the private sector for supplying imported liquefied natural gas (LNG) to potential clients through negotiable tariffs.
The Energy and Mineral Resources Division (EMRD) in the final draft of LNG Import Policy, 2019 in private sector allowed purchase and sale of LNG to potential clients.Now, Bangladesh Energy Regulatory Commission (BERC), an independent authority, will set tariffs for natural gas and power.
The EMRD officials discussed the policy on February 10, this year and finilised the draft through an internal meeting in the Secretariat.
According to the draft, private sector importers will inject their imported gas to gridline. But they (importers) will have to pay the wheeling charge in this regard.
In case of their interested to supply imported natural gas to state-owned Petrobangla, then they will have to supply it through specification as per the necessity.
However, importers will supply only 25 percent of re-gasified LNG subject to requirement of Petrobangla.
Importers must follow the internationally-recognised codes, standards and laws for import of LNG.The EMRD, Bangladesh Energy Regulatory Commission or Petrobangla will supervise the LNG ships, unloading terminal or re-gasification plant as per the draft.
Importers will show financial, technical and manpower qualification to import LNG. Besides, it must show documents for imported LNG if they procure it for own purposes.
Petrobangla has reserved the right to cancel the No-Objection Certificate (NOC) subject to breach in rules and regulation on LNG import.
The government will also carry out an assessment of future requirement of LNG-fired power plants in the country, in view of the high import cost of petroleum fuel.
Earlier, the government allowed local Summit Group and Indian Reliance for setting up LNG-fired power plants. Summit will supply electricity at Tk 5.4487 per unit while the tariff from the Reliance-sponsored plant will be Tk 5.8498 per unit.
Besides, Bangladesh Power Development Board (BPDB) is likely to allow setting up of another 600MW LNG-fired power plant at Meghnaghat in Narayanganj to purchase electricity for a 22-year period at a cost of Tk 53,293 crore.
The BPDB will purchase electricity from the proposed Unique Hotel and Resorts Limited-sponsored power plant a cost of Tk 5.4478 per unit.
The consortium proposed to sell electricity at Tk 2.9538 per unit if the government supplies natural gas to the plant instead of costly LNG.