The government was forced to partially suspend LNG supply to the national grid from Petrobangla to allow the commissioning of Summit’s Floating Storage and Regasification Unit (FSRU).
Summit LNG Terminal Co Ltd (SLNG) commissioned its FSRU on Monday and supplying 500 mmcfd of re-gasified liquefied natural gas (LNG) to the national grid, Summit officials said.Public sector officials could not prove any official figures on the ratio of LNG supply by state-owned Rupantarita Prakritik Gas Co Ltd (RPGCL) and Summit’s LNG terminal.
An official of the Petrobangla said the nation grid can handle only 600mmcfd whereas the volume of LNG imports by Summit and Petrobangla is around 1000mmcfd.
He said the completion of the construction of the Moheskhali-Anwara Parallel lines, Bakhrabad and Faujdarhat grid lines will help supply of 1000mmcfd of imported LNG into the grid. He refused to comment on the completion deadline of the grid line projects though the government has taken the most of those projects under the Speedy Supply of Power and Energy (Special Provision) Act.
This significant milestone in private sector LNG supply was achieved approximately one month ahead of schedule saving resources for the government and will be a source of supply to many of the homes and industries waiting for much-needed gas supply, Summit, has said. Founder Chairman of Summit Group Muhammed Aziz Khan remarked, “Investors in Bangladesh believe that energy, gas and power will be available to their industries. Our Summit LNG’s 500 mmcfd will help to strengthen that trust. Price is a matter of demand and supply in a free-market economy. However, Bangladesh Energy and Regulatory Commission (BERC) has to set fair price as only a fair price can ensure uninterrupted gas and power supply.”
Last month, Petrobangla has proposed to raise gas tariff and said they will incur loss Tk 24,540.42 crore annually due to import 1000mmcfd of LNG.