Petrobangla is planning to import seven additional LNG cargoes at current market rates to ensure an uninterrupted supply of natural gas for fertilizer production, which is crucial for supporting Boro crop output.
“We have a plan to import seven more cargoes to meet the growing demand for fertilizers, subject to approval of an additional tariff for fertilizer use,” Md Rafiqul Islam, Director of Operations at Petrobangla, told Just Energy News.
This year, the government had planned to import 108 LNG cargoes. That number is expected to rise to 115 cargoes next year.
Rafiqul Islam noted that Petrobangla will require an additional Tk 3,500 crore to supply gas to fertilizer factories.
The Jamuna Fertilizer Company Ltd. and Chittagong Urea Fertilizer Ltd. (CUFL) have expressed interest in resuming production to meet rising fertilizer demand, he added.
Petrobangla is currently supplying 165 million cubic feet per day (mmcfd) of natural gas to fertilizer factories—up from 130 mmcfd last month, according to him.