Govt seeks WB funding for setting up LNG terminal

The government sought the World Bank’s support to implement nine new projects in the country's energy sector, including installation of a land-based LNG terminal at Matarbari in Cox’s Bazar.

The new LNG (liquefied natural gas) terminal will have a capacity of processing 1000 mmcfd of imported natural gas. The project might need an investment of around $1.5 billion, officials concerned said. 

The country currently has two floating storage and regasification units (FSRU) to process the imported liquefied natural gas, with a total capacity of 1000 mmcfd.

Summit Group received the work of establishing a third FSRU on Wednesday having a capacity of 500 mmcfd. The cost is estimated to be $500 million

With the new proposal of building a land-based LNG terminal in Matarbari, the country's total capacity to process imported LNG will reach 2500 mmcfd.    

At present, around 3000 mmcfd of natural gas is being supplied a day, with 800 mmcfd coming from the existing two FSRUs.

The country's demand for natural gas is projected to be 6000 mmcfd by 2030 and 8000 mmcfd by 2041.

The nine new projects are: Installation of Land-bsed LNG terminal (1000 mmcfd capacity), installation of gas pre-paid meter for all consumers, replacement and modernisation of old gas distribution system in Dhaka city, Gas Transmission Line from Langalband-Mawa-Jajira-Gopalganj, Conducting 2D/3D Seismic Survey, Drilling of Exploration Wells/Development Wells/Work Over Wells, Installation of WellHead Compressor Project, Implementation of Automation of Gas System and Implementation of Enterprise Resource Planning in Energy Sector.

“We have placed our new projects to the World Bank and sought their support to improve the supply of natural gas to consumers,” said an official who attended a recent meeting with the World Bank’s senior management at the Ministry of Power, Energy and Mineral Resources.

He added the projects might need more than $3-$5 billion as investment. 

Now, there are three projects under negotiation with an estimated cost of $300 million.

The projects are: Installation of Prepaid Gas Meters for TGTDCL’s 11 Lakh Smart Meter, Installation of Prepaid Gas Meters, SCADA and GIS at PGCL Franchise Area 1.28 lakh Smart Meter and Technical Assistance for the Decarbonisation of the Oil and Gas Value Chain. 

“The Energy and Mineral Resources Division is going to take strict measures to stop pilferage of  the costly natural gas,” said an official of the Division.

“So, we are planning to install the prepaid gas meters to each house,” the official added.