The Bangladesh Power Development Board (BPDB) on Tuesday placed an alternative proposal to transporting gas from Bhola in liquefied natural gas (LNG) form, claiming it could save the government Tk 9,300 crore over a 10-year period.
The proposal was presented at a public hearing organised by the Bangladesh Energy Regulatory Commission (BERC) on the proposed pricing of Bhola LNG.
BPDB Additional Director (Finance) Syed Zulfikar Ali said that if the alternative plan is adopted, annual savings could amount to Tk 930 crore. He argued that instead of converting Bhola gas into LNG and transporting it, electricity could be generated locally and transmitted to demand centres.
“One cubic metre of gas can generate four to five units of electricity. Transmitting that electricity to Dhaka would cost only Tk 1.24 per unit, without requiring any additional investment,” he said.
Under the LNG proposal, the transportation cost from Bhola has been estimated at Tk 29.90 per cubic metre. For transporting 30 million cubic metres of LNG annually, the cost would be around Tk 930 crore, amounting to Tk 9,300 crore over a decade, he added.
Calling the LNG option a waste of public funds, Zulfikar Ali urged approval for setting up a 200-megawatt power plant in Bhola. “The cost of two years’ LNG transportation would be enough to establish the power plant. Transmission lines already exist, so there would be no added cost,” he said.
Addressing the gas shortage in Dhaka and surrounding areas, he said a 200MW plant would require about 45 million cubic feet of gas per day. “If this amount is adjusted from Dhaka’s allocation, both the power shortage and gas crisis can be eased,” he claimed.
Several other speakers at the hearing also opposed transporting Bhola gas as LNG due to high costs.
In its report, BERC’s technical committee noted that as LNG transportation from Bhola is a new concept, it is difficult to determine precise costs. It suggested setting Tk 29.90 as an upper limit and finalising rates after tendering, licensing and further public hearings.
Petrobangla representatives told the hearing that gas is currently being transported from Bhola in compressed natural gas (CNG) form, with the transport cost fixed at Tk 29.90 per cubic metre through an executive order. Consumers are paying Tk 47.50 per cubic metre, including gas price. They proposed setting LNG prices in line with the same executive order.
The proposal drew sharp criticism from speakers, who argued that the earlier gazette was issued to benefit a particular company and that BERC now has the opportunity to reassess whether the transport cost is justified before approving any LNG plan.
BERC Chairman Jalal Ahmed said all views had been noted and written opinions could be submitted until February 2. “After examining everything, a decision will be announced,” he said.
Responding to calls for pipeline transport instead of LNG, the chairman said pipeline construction would be considered. He noted that the pre-feasibility study of the Bhola–Barishal pipeline has been completed, while the feasibility study for the Barishal–Dhaka section is ongoing.
The hearing was attended by representatives of Petrobangla, Titas Gas Transmission and Distribution Company, Sundarban Gas Company, Bapex, GTCL, RPGCL and business bodies.
Bangladesh is currently facing an acute gas shortage despite LNG imports. Meanwhile, surplus gas remains untapped in the island district of Bhola due to lack of pipeline connectivity.
Three gas fields have been discovered in Bhola, with nine wells having a combined production capacity of about 190 million cubic feet per day, though only around 70 million cubic feet is currently being extracted.
Petrobangla is working to drill 15 more wells, with Bapex estimating that production could rise to 300–400 million cubic feet per day once pipelines and new wells are completed.
Discussions on building a pipeline to bring Bhola gas into the national grid have continued for decades. While the original plan was for a Bhola–Barishal–Khulna route, it was later revised to Bhola–Barishal–Dhaka. Officials said financing issues have been the main reason for the prolonged delay.