The government has decided to conduct a feasibility study on importing Liquefied Natural Gas (LNG) through Mongla Port.
The ministry of power and energy has taken the decision to conduct the feasibility study in a meeting early this month.
Two FSRUs have already been installed in the island to process 675mmcfd of LNG against the capacity of 1000 mmcfd.
Earlier, three separate companies proposed to set up FSRUs and import LNG using Mongla, Bangladesh’s second major seaport.
The local energy giant Summit, US firm Excelerate and UAE-based ENOC proposed to establish the FSRUs separately with a capacity of 500 mmcfd each.
Besides, the Petrobangla is also working to import 500 mmcfd of LNG in two phases through cross-border negotiation with the Indian IOCL and H-Energy, said the ministry officials.
The government has a plan to increase LNG import at least by 1600 mmcfd to supply 3465 mmcfd annually by the FY 2023-24.
In the FY 2024-25, the LNG import will surge to 2350 mmcfd against the requirement of 4343 mmcfd of natural gas, according to a Petrobangla projection.
The demand of natural gas is predicted to reach 5092 mmcfd by 2041, of which, 3850 mmcfd will be met by import.
“We have a plan to develop infrastructure to increase annual LNG import to 4000 mmcfd by FY2031-32,” said an official concerned.
He added the Petrobangla has already made a presentation last month before the ministry in this regard. The government also plans to install a third parallel pipeline from Matarbari to Moheskhali. This will be built to supply 1000 mmcfd of LNG from the land-based FSRU.
The government policymakers are worried about the strategy of importing costly LNG to meet supply shortage as the locally produced gas is depleting gradually.
On the other hand, the tariff on the LNG import has been raised significantly.
Energy expert Prof M Tamim said the government should chalk out an “appropriate plan” on the LNG import.