UNB, Dhaka :
Against the backdrop of the country’s fast declining gas reserve, the Energy Division has initiated a strong
move to introduce liquefied natural gas (LPG) within the next two or three years by phasing out the existing piped natural gas for household consumption.
According to Energy Division officials, the gas reserve, which now stands at 14 trillion cubic feet (tcf), will start to decline from 2017 if no new discovery is made. “The natural gas will completely get exhausted by 2031 if no substantial reserve is discovered”, said a top Energy Division official.
Under the circumstances, he said, LPG is considered as the most suitable alternative to natural gas for household purpose as 2.8 million household consumers are now using 330 mmcfd gas –13.06 of the total gas production.
According to Power and Energy Ministry’s latest document, the country’s total gas reserve (proven plus probable) is 27.12 trillion cubic feet (tcf). Of this, 13.032 tcf gas has been extracted until June 2015, with 14.088 tcf remaining.
The gas production marked a rise by 986 mmcfd to 2730 mmcfd in 2015 from 1744 mmcfd in 2009, an average
annual increase by 164.33 mmcfd in the last six years.
Energy Ministry officials said the gas sector did not see any new discovery in the last 7-8 years although the state-owned Petrobangla made announcement on several occasions of new gas reserve. But when they went for drilling, no gas was found there as announced.
According to the officials, there is no sign in sight for discovery of new gas anytime soon. The government awarded three offshore blocks last year, but the country will have to wait for at least 5-7 years to get the results from there.
The government has already stopped providing any new gas connection to household consumers under a policy decision, while the drive is being intensified to replace the existing 2.8 million household gas consumers with LPG.
State Minister for Power and Energy Nasrul Hamid said the Energy Division will soon announce a concrete policy on LPG pricing and marketing for making its use popular.
Officials, however, said the replacement of piped gas by LPG is a very complicated issue as it involves a huge task. Before moving to LPG, the bottled-gas has to be popularised by rationalising the price of piped gas and that of LPG.
According to the officials, the Energy Division has formed three committees to resolve different issues in this regard. One of the committees will a prepare policy on safety issue while another will work on pricing and subsidy. Then third committee will work on evolving strategy to implement this project through private sector.
An official said, now there is a huge gap between the price of pipe-gas and the LPG. The monthly cost of a two-burner oven is Tk 650 for its unlimited use, while a 12kg LPG bottle gas costs more than Tk 1200 which continues for only 21-22 days with limited use for a family. “The gap has to be reduced through a rational pricing formula where government’s subsidy will play a vital role,” he said.
Against the backdrop of the country’s fast declining gas reserve, the Energy Division has initiated a strong
move to introduce liquefied natural gas (LPG) within the next two or three years by phasing out the existing piped natural gas for household consumption.
According to Energy Division officials, the gas reserve, which now stands at 14 trillion cubic feet (tcf), will start to decline from 2017 if no new discovery is made. “The natural gas will completely get exhausted by 2031 if no substantial reserve is discovered”, said a top Energy Division official.
Under the circumstances, he said, LPG is considered as the most suitable alternative to natural gas for household purpose as 2.8 million household consumers are now using 330 mmcfd gas –13.06 of the total gas production.
According to Power and Energy Ministry’s latest document, the country’s total gas reserve (proven plus probable) is 27.12 trillion cubic feet (tcf). Of this, 13.032 tcf gas has been extracted until June 2015, with 14.088 tcf remaining.
The gas production marked a rise by 986 mmcfd to 2730 mmcfd in 2015 from 1744 mmcfd in 2009, an average
annual increase by 164.33 mmcfd in the last six years.
Energy Ministry officials said the gas sector did not see any new discovery in the last 7-8 years although the state-owned Petrobangla made announcement on several occasions of new gas reserve. But when they went for drilling, no gas was found there as announced.
According to the officials, there is no sign in sight for discovery of new gas anytime soon. The government awarded three offshore blocks last year, but the country will have to wait for at least 5-7 years to get the results from there.
The government has already stopped providing any new gas connection to household consumers under a policy decision, while the drive is being intensified to replace the existing 2.8 million household gas consumers with LPG.
State Minister for Power and Energy Nasrul Hamid said the Energy Division will soon announce a concrete policy on LPG pricing and marketing for making its use popular.
Officials, however, said the replacement of piped gas by LPG is a very complicated issue as it involves a huge task. Before moving to LPG, the bottled-gas has to be popularised by rationalising the price of piped gas and that of LPG.
According to the officials, the Energy Division has formed three committees to resolve different issues in this regard. One of the committees will a prepare policy on safety issue while another will work on pricing and subsidy. Then third committee will work on evolving strategy to implement this project through private sector.
An official said, now there is a huge gap between the price of pipe-gas and the LPG. The monthly cost of a two-burner oven is Tk 650 for its unlimited use, while a 12kg LPG bottle gas costs more than Tk 1200 which continues for only 21-22 days with limited use for a family. “The gap has to be reduced through a rational pricing formula where government’s subsidy will play a vital role,” he said.
