Intraco Refueling Station PLC has announced plans to transport an additional 20 million cubic feet of compressed natural gas (CNG) daily from Bhola’s gas fields, pending price negotiations.
Currently, the company supplies 5 million cubic feet of gas per day to factories in Dhaka and surrounding areas.
At a seminar in Dhaka on Monday, Intraco officials stated that with government support, they could scale up their daily capacity to 25 million cubic feet within six months, potentially lowering costs if delivered directly to the national grid or power plants.
Managing Director Mohammed Riyadh Ali highlighted the underutilization of Bhola’s natural gas reserves, which lack sufficient pipeline infrastructure, despite the ongoing gas crisis. Intraco currently transports gas as CNG via specialized vehicles to industries in Dhaka and nearby regions.
Bhola’s gas fields, including Shahbazpur, hold reserves of 2.04 trillion cubic feet with a daily production capacity of 200 million cubic feet (mmcfd). However, local demand ranges from 70 to 80 mmcfd, leaving approximately 120 mmcfd unused.
To address this gap, Intraco signed an agreement with Sundarban Gas Company Limited (SGCL) in May 2023. Under this deal, Intraco purchases gas at Tk 17 per unit (1,000 cubic feet) and sells it to factories at Tk 47.60.
Since starting operations in December 2023, the company has supplied gas to 18 factories, generating Tk 9 crore in revenue despite an initial investment of Tk 90 crore.
The company currently incurs a loss of Tk 5 per unit of gas sold but anticipates profitability as supply capacity increases. Intraco is investing Tk 450 crore to develop infrastructure to transport an additional 20 million cubic feet of gas daily, aiming to commence delivery by June 2024, subject to government approval.
Infrastructure development is underway, with 106 decimals of land acquired in Bhola’s Borhanuddin upazila for a processing plant. Construction is nearly complete, and compressors from a Korean manufacturer are in the final production stage.
The company has also initiated bids for a 2.8-kilometer, 10-inch diameter distribution pipeline.
Intraco has proposed transporting surplus gas directly to the national grid or Khulna to power the 225 MW dual-fuel combined-cycle power plant, ensuring efficient utilization of unused gas.
“We’ve requested the Energy and Mineral Resources Division (EMRD) to extend the tenure for an additional 20 mmcfd supply from Bhola under the force majeure clause,” Riyadh Ali stated. He also urged the government to facilitate transport infrastructure for the additional gas supply to Dhaka.
Currently, Bangladesh faces a daily demand of 4,000 mmcfd but supplies only 2,800 mmcfd, including 1,000 mmcfd of imported LNG. Intraco’s initiative aims to bridge the gap and meet the country’s growing energy needs.
The company welcomed new private sector players interested in utilizing Bhola’s gas reserves.
