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Gas
Maiden policy on hydrocarbon exploration
The government has made a move to frame a maiden policy to expedite countrywide hydrocarbon explorations with an intent to rein in the growing reliance on imported fuels. This is part of an initiative to explore hydrocarbon deposits across the country by local and foreign firms. Energy and mineral resources division under power, energy and mineral resources ministry already drafted the policy weeks ago, said a senior ministry official. The draft would be finalised soon, he continued. Energy ministry now feels it urgent to accelerate local hydrocarbon explorations against the backdrop of the leanest-ever discoveries in the last one decade.
Old Dhaka likely to get 120,000 prepaid gas meters
August 29, 2019 Thursday 10:14 AM By News Desk, energynewsbd.com
Some 120,000 prepaid gas meters are likely to be added to the ongoing project of Titas Gas Transmission and Distribution Company Ltd (Tas Gas T&D) to install those in the southern part of capital Dhaka. According to official sources at the Titas Gas, a proposal now remains pending with the Japanese financing agency JICA for their final consent. “We hope, JICA will give its clearance within a month in this regard,” a top official at Titas Gas told the news agency. Titas Gas T&D, entrusted with the responsibility of natural gas transmission and distribution across Dhaka city and adjoining areas, has taken a project to install 200,000 prepaid metres for the household consumers to check gas pilferage and its misuse. As per Titas Gas official data, it has about 2.783 million consumers in its command area of which 2.764 are household consumers.
Category: Gas
Bangladesh receives interest from 12 firms to build LNG terminal
June 30, 2019 Sunday 9:23 PM By News Desk, energynewsbd.com
Bangladesh has received interest from twelve companies to build the country’s first onshore liquefied natural gas (LNG) import terminal, according to four sources familiar with the matter. The South Asian country, which has a population of more than 160 million, is turning to land-based LNG terminals as its first imports of the super-chilled fuel via a floating platform were delayed due to weather and technical issues. Rupantarita Prakritik Gas Co, part of state-owned oil and gas company Petrobangla, earlier this year had requested expressions of interest (EOI) from potential terminal developers for a land-based LNG regasification terminal at Matarbari in the Cox’s Bazar district of southern Bangladesh. Twelve companies have submitted their interest to build the terminal, said two officials from Rupantarita Prakritik Gas Co. A committee will evaluate the proposals and create a shortlist based on the capabilities and technical assessments of the 12 companies, one of the officials said. It could take more than a year to complete and award the contract for the terminal, the official said. The expressions of interest were initially due on March 20, but the closing date was delayed to this week after the companies requested more time. The expression of interest is for the design, engineering, procurement, construction and commissioning of an onshore terminal that can handle 7.5 million tonnes a year of LNG, including receiving, unloading, storage and regasification. The project is on a build-own-operate basis for 20 years, with ownership to then be transferred at no cost to the Bangladeshi government or a company nominated by the government.
Category: Gas
Gas price raised by 32.8 pc on average
June 30, 2019 Sunday 8:32 PM By UNB
The average gas price has been raised by 32.8 percent for the retail consumers in the country with effect from Monday. Chairman of the Bangladesh Energy Regulatory Commission (BERC) Monwar Islam announced the decision of the commission at its office on Sunday. As per the new price hike, the household consumers having single burner will have to pay Tk 925 a month instead of the existing Tk 750 while the double burner users will have to pay Tk 975 instead of the existing Tk 800. The household consumers having gas metre will have to pay Tk 12.60 per cubic metre (CM) instead of Tk 9.10 with 38.46 percent hike. The BERC chief said the average gas price was raised to Tk 9.80 per cubic metre from the existing Tk 7.38 per cubic metre (CM). According to the increased price, CNG consumers will have to pay Tk 43 per CM with 7.5 percent hike instead of Tk 40 while captive and small power plant operators will have to pay Tk 13.85 per CM instead of Tk 9.62 with 43.97 percent hike. CNG station operators will have to pay Tk 35 per CM instead of Tk 32 to the government for their feed gas. consumers like restaurants, hospitals, student hostels, hotels will have to pay Tk 23 per CM instead of Tk 17.04 due to 34.98 percent hike in price. The gas price hike for industry is 37 percent as the industry owners will have to pay Tk 10.70 per CM instead of Tk 7.76 per CM while tea estates the same price like industries. However, the gas price for small and cottage industries was not raised. Public and private power plants will have to pay Tk 4.45 per CM instead of Tk 3.16 per CM due to price increase by 42.80 percent while fertiliser factories Tk 4.45 per CM from the exiting Tk 2.71 per CM. Energy sector experts believe that the increase in gas price for power plants means it will have spillover effect and the power plant operators will soon raise demand for increase in power tariff. BERC member Mizanur Rahman said the gas utility companies need to increase the gas price by 75 percent due to the loss for the import of liquefied natural gas (LNG) at much higher price. “A Tk 18,730 crore additional fund is needed to cover losses due to payment for the import of LNG.” But now, he said, some 33 percent or Tk 8620 crore will be collected from consumers while 29 percent or Tk 7690 crore will be given by the government as subsidy and the remaining amount of Tk 2420 crore will be given from the Gas Development Fund (GDF) which is also created by the money from consumers. BERC chairman said this new price was calculated considering the import of 850 million cubic feet (MMCFD) of LNG for the new fiscal year of 2019-20. He said the existing minimum demand charge for different consumer groups except the households ones was withdrawn and instead a new demand charge of Tk 0.10 per CM per month was imposed on them. He said the gas price was last increased in September 2017. The new price hike came in response to the demands of different gas utility companies. The BERC held a series of public hearings on March 11-14 this year.
Category: Gas
LNG boosts daily gas supply to 3,200 mmcf
March 26, 2019 Tuesday 10:36 AM By News Desk, energynewsbd.com
The country’s overall natural gas supply crossed the 3,200 million cubic feet mark a day (mmcf), boosted by the imports of liquefied natural gas (LNG). The lone operational floating, storage, re-gasification unit (FSRU) is currently re-gasifying around 532 mmcfd equivalent of LNG, which is the highest quantity of LNG re-gasification from Excelerate Energy’s vessel at Matarbari in the Bay of Bengal. According to state-run Petrobangla, the total natural gas output was 3,218 mmcf per day, as of Monday. Of the total output, local gas production companies produced around 1,026 mmcf or 31.8 per cent of the total daily output, international oil companies (IOCs) produced around 1660 or 50.8 per cent and the remaining 532 mmcf are re-gasified LNG. Gas-guzzling clients of Chattogram are the major consumers of re-gasified LNG. Of the total re-gasified LNG, the Karnaphuli Gas Distribution Company Ltd (KGDCL), dedicated to supplying natural gas to the Chattogram region, has been taking around 320 mmcf a day, or 70 per cent of the total quantity, said a senior official of state-run Gas Transmission Company Limited (GTCL). Some 150 mmcf per day equivalent of re-gasified LNG is being supplied to Titas franchise areas and the remaining 41 mmcfd to the Pashchimanchal Gas Company Ltd (PGCL), he said. The country’s overall natural gas supply improved substantially with the start of full capacity re-gasification in the floating LNG terminal, said a senior Petrobangla official.  
Category: Gas
Proposals to hike gas prices: Public hearing ends; Berc to take ‘judicious’ decision
March 15, 2019 Friday 11:43 AM By UNB
Bangladesh Energy Regulatory Commission (Berc) has assured that it will consider proposals to hike the gas tariff judiciously as the four-day public hearing on those ended here on Thursday. “Gas entities might have proposed raising gas tariff by more than 100 percent in some cases. But I can assure you that the commission will consider the matter judiciously without any biasness,” said Berc Chairman Monwar Islam while making his concluding remarks at the hearing. He also reminded that the commission never agrees with the proposals placed by the gas companies and delivers its order applying its own judicious consciousness. “For example, the companies proposed a 95 percent hike, but the Berc ordered an 11 percent hike,” Monwar told the audience who were mainly from different consumer rights groups, political parties, business bodies, civil societies and journalists. He also urged people not to get panicked with the gas tariff hike proposals and instead keep their trust in the neutrality of the energy watchdog. The Berc chairman directed the gas entities not to bring any unrealistic or exaggerated price hike proposal in the future, saying it creates panic among people. He also called upon the participants to convey their additional arguments to the Berc by March 20 if they have any.  On the concluding day, the Karnaphuli Gas Distribution Company and Pashchimanchal Gas Distribution Company placed their respective proposals which were identical with other gas distribution entities like Titas, Bakhraba and Jalalabad.       As per the proposals, the consumer having a single burner oven will have to pay Tk 1,350 per month instead of exiting Tk 750 while the two-burner users will pay Tk 1,440 per month instead of Tk 800 and the metred household consumer has to pay Tk 16.41 per cubic metre (each unit) instead of Tk 9.10 per cubic metre for gas consumption. Power plants will pay Tk 9.74 per unit of gas instead of the existing rate of Tk 3.16 with a rise of 208 percent while fertiliser factories will pay Tk 8.44 per unit instead of Tk 2.71 per unit with the rise of 211 percent. They proposed increasing the gas tariffs by 96 percent to Tk 18.88 per unit from Tk 9.62 for captive power while it proposed hiking 132 percent gas tariff for industries to Tk 18.04 per unit against the existing rate of Tk 7.76 per unit. They proposed raising the tariff by 50 percent for CNG to Tk 48 per unit from Tk 32 while 41 percent for commercial use of gas to Tk 24.05 from Tk 17.04 per unit. As per the Berc Act, the energy regulator will announce its decision within 90 days of the hearing.
Category: Gas
Petrobangla signs MoU with Dhaka University’s Geology department
March 15, 2019 Friday 11:08 AM By News Desk, energynewsbd.com
A memorandum of understanding (MoU) between department of Geology, University of Dhaka and Petrobangla and its subsidiary companies for institutional collaboration in the field of academic, training and research was signed on 13 March, 2019 at Petrobangla`s Board Room at Kawranbazar in the city. Chairman of Petrobangla Md Ruhul Amin presided over the ceremony while Secretary of Energy and Mineral Resources Division Abu Hena Md Rahmatul Muneem was present as chief guest, said a press release. It was attended by Chairman of department of Geology, University of Dhaka professor Dr Kazi Matin Uddin Ahmed, supernumerary professor Dr Badrul Imam, professor Dr Anwar Hossain Bhuiyan, high officials of Energy and Mineral Resources Division and directors along with high officials of Petrobangla were also present at the ceremony. Secretary of Petrobangla Syed Ashfaquzzaman and Chairman of department of Geology, University of Dhaka professor Dr Kazi Matin Uddin Ahmed signed the MoU on behalf of their respective organizations.
Category: Gas
Public hearing on gas price hike starts March 11
February 15, 2019 Friday 11:38 AM By News Desk, energynewsbd.com
The Bangladesh Energy Regulatory Commission (BERC) is going to hold mass hearings on gas price hike from March 11. The energy regulator has already received proposals from all gas transmission and distribution companies about the hike. The mass hearing will take place at the auditorium of the Trading Corporation of Bangladesh (TCB) in Karwanbazar, said a notice. Any organisations or persons interested in taking part in the mass hearing should apply to the BERC by March 4.  The hearing will start with Petrobangla on March 11 in the morning. Later, from 10:30am, the Gas Transmission Company Limited will place a proposal to increase the gas transmission charge.  On March 12, the hearing of the Titas Gas Transmission and Distribution Company Ltd will be held from 10am to 12:30pm. From 2:30pm to 5pm on the same day, the hearing of Sundarban Gas Company Limited will take place. On March 13, the hearing of the Bakhrabad Gas Distribution Company Ltd will be held from 10am to 12:30pm. The hearing of the Jalalabad Gas Transmission and Distribution Company Ltd will be held from 2:30pm to5:00 pm on the same day. On March 14, the hearing of the Karnafuli Gas Distribution Company Ltd will take place from 10am to 12:30pm, while the Pashchimanchal Gas Company Ltd’s hearing will be held from 2:30 pm to 5pm.
Category: Gas
LNG boosts Ctg factories, power plants
February 15, 2019 Friday 11:28 AM By News Desk, energynewsbd.com
Gas supply to the national grid from the maiden floating LNG import terminal in the deep sea rose to its maximum capacity on Tuesday morning as the pipeline started receiving 450 million cubic feet of gas a day. The gas supply to different regions from the national grid will boost up production in factories, gas-based power plants and fertiliser factories, domestic holdings and garment manufacturing units resulting in a positive impact on the overall national economy. With the enhanced supply the country is now getting gas for all regions including the capital Dhaka from the national grid in a limited scale alongside the natural gas available from the local gas fields. The natural gas supplied earlier to the Chattogram region has also been added to Dhaka and rest of the country from the national grid. Chattogram, a long-time gas-hungry region, will be the most beneficiary of the FSRU gas supply as most of the major industries and the thriving special industrial and economic zones are located in the region. It took as long as seven months after commissioning of the Floating, Storage and Re-gasification Unit (FSRU) located at Moheshkhali island of Cox`s Bazar to get supply of the re-gasified LNG from the import terminal having 500 million cubic feet of gas a day (mmcfd), sources concerned said. Sources in the Karnaphuli Gas Distribution Co Ltd (KGDCL) said trial supply of 450 mmcfd of gas for two days was successful before full scale commissioning by authority in the Petrobangla. Sources said that the supply from the FSRU was disrupted due to leakage in the submersed gas pipeline between the City Gate Station (CGS) near the CUFL fertiliser factory at Anwara and the Fouzderhat CGS at Sitakunda. For supply of the re-gasified LNG the authority concerned constructed a 91- kilometre pipeline between Moheshkhali and Anwara and another 30- kilometre pipeline between Anwara and Fouzderhat. Earlier, the actuator valve in between the FSRU and the sub-sea pipeline also surfaced leakage in the first week of November last resulting in the total halt to the re-gasification at the Excelerate Energy`s terminal, sources said.  The KGDCL, dedicated to the Chattogram region, was receiving only 170 to 180 million cubic feet of gas per day (mmcfd), far less than it used to get before termination of re-gasification at the LNG import terminal, sources said. Production in the gas-fired power plants of Raozan 210 megawatt x 2, Shikalbaha 225 MW, Shikalbaha 150 MW power plants and Chittagong Urea Fertiliser Ltd (CUFL) in Chattogram was suspended following the damage in the underwater pipeline valve. The KGDC official said after repairing the pipeline the gas supply resumed in a limited scale ranging between 210 and 230 mmcfd. So the authority could not supply gas to the national grid as expected. Chattogram was the worst sufferer from gas shortage as the gas-hungry industries have been suffering from short supply. The domestic burners ran dry for a long time while commercial enterprises also suffered for years. Source: Financial Express
Category: Gas
Govt seeks developers for its first onshore LNG terminal
January 31, 2019 Thursday 11:39 AM By Reuters
Bangladesh is seeking expressions of interest to build the country’s first onshore liquefied natural gas (LNG) import terminal, according to a company official and a document posted on the company’s website. The South Asian country, which has a population of more than 160 million is turning to land-based LNG terminals as its first imports of the super-chilled fuel through a floating platform were delayed due to the weather and technical issues. Rupantarita Prakritik Gas Co, part of state-owned Petrobangla, which oversees LNG supplies, has requested interest from potential terminal developers for a land-based LNG regasification terminal at Matarbari in the Cox’s Bazar district of southern Bangladesh. The expression of interest is for the design, engineering, procurement, construction and commissioning of a land-based terminal that can handle 7.5 million tonnes per annum (mtpa) of LNG, including receiving, unloading, storage and re-gasification facilities. The project is on a build-own-operate basis for 20 years, with ownership then transferred to the Bangladeshi government or a company nominated by the government at no cost. “A land-based LNG terminal is now our top priority,” said Mohammad Quamruzzaman, managing director of Rupantarita Prakritik Gas. The onshore terminal, which can be expanded to 15 million mtpa in the future, is part of Bangladesh’s strategy to develop its gas sector with private companies, according to the document. The project developer will be required to arrange the necessary financing, the document stated. The developer will receive the LNG from the LNG ship as part of an agreement between Bangladesh and the LNG supplier, unload and store it, re-gasify it and supply the gas to the transmission pipeline. The terminal is set to be completed by June 2023. Companies should submit their expressions of interest by March 20, with the official documents expected to be issued to shortlisted applicants by Aug. 29. Bangladesh began importing LNG from Qatar on a regular basis in last year through the country’s first floating storage and regasification unit (FSRU). It has scrapped plans to build additional floating LNG import terminals after its second FSRU comes on line. Bangladesh’s LNG demand potential could support a terminal with that capacity, said senior analyst at consultancy FGE Poorna Rajendran. “Declining domestic output amidst growing energy demand would leave LNG as a mainstay in its energy mix,” he said. “Coal’s share will rise in the nation’s energy mix but existing gas infrastructure and growing environmental and land acquisition concerns surrounding large coal plants would mean that coal’s share will not grow substantially.” In such a scenario with LNG expected to be a long term solution, a land-based terminal with larger capacity would be more economical than a smaller FSRU which is typically best suited to meet short-term and mid-term demand, he added.
Category: Gas
Titas fails deadline with around two-thirds work impending
January 13, 2019 Sunday 8:09 AM By News Desk, energynewsbd.com
Having failed to complete a three-year project for the implementation of two lakh prepaid gas meters by December last, Titas Gas Transmission and Distribution Company Limited (TGTDCL) has sought a two-year extension from the Petrobangla and Energy and Mineral Resources Division. Initiated in 2015, the project that expired on December 18 saw a little over one-third of the meters installed in parts of Dhaka, confirmed sources at the TGDCL, the country’s biggest state-run gas company. The project is being implemented with funding from the Bangladesh government and Japan International Cooperation Agency. “Just 74,284 meters were installed at Banani, Baridhara, Gulshan,Bashundhara, Badda, Tejgaon, Mirpur, Cantonment, Kafrul, Khilkhet, Uttara and adjacent areas of Dhaka,” said a Titas official. He attributed the failure to the delay in starting the project work. “The practical works of the project started more than two years and a half after its launching in January 2015,” he also said. He went on saying the proposal seeking extension of the project until 2020 was sent to the government for a go-ahead. Titas Gas Company and Japan-based Toyokeiki Company Ltd inked a Tk 387 crore engineering, procurement and construction deal on March 16, 2017 for the prepaid meter installation. Of the total project cost, the government will contribute Tk237 crore, Japan International Cooperation Agency (JICA) will pay Tk453 crore, and TGTDCL will provide funds of Tk 22.2 crore. Some 170,000 prepaid meters will be installed in Madhya Badda, Baridara, Gulshan, Banani, Tejgaon, Azampur, Cantonment, Mirpur, Kafrul, Khhilket, Uttarkhan, and Uttara, with the remaining 30,000 earmarked for Bashundhara, Uttara Third Phase, and Dakkhinkhan.  
Category: Gas
Summit’s LNG terminal likely to start commercial operation by March
January 9, 2019 Wednesday 7:10 PM By Staff Correspondent, energynewsbd.com
The first LNG terminal under the initiative of private sector is likely to start commercially by March this year. The terminal is being constructed at Moheshkhali in Cox’s Bazar by the Summit LNG Terminal Company (Private) Limited, a concern of the Summit Group. Even though the terminal has the capacity to supply 500 million cubic feet of gas per day, it will be able to supply 250 million cubic feet because of the lack of installed pipeline, said a Petrobangla official. The new terminal of Summit is going to be launched six month after the first LNG terminal started supplying LNG to the national grid. ANM Tariqur Rashid, Managing Director of the Summit LNG Terminal Company Private Limited told energynewsbd.com that working on offshore location is always very risky and it is hard to envisage anything before the completion of the work. “We however hope to start our commercial activity in the terminal by March,” said Rashid. Summit Group signed two separate contracts with Energy and Mineral Resources Division and Petrobangla in April 20, 2017. As per the contracts, the Summit LNG Terminal Company Private Limited will construct the terminal along with a nine kilometer long pipeline under the sea. After operating the terminal for 15 years, Summit will hand over the terminal to Petrobangla. Under the LNG terminal project, Summit will supply gas to Gas Transmission Company Limited after converting the LNG into gas in the floating storage re-gasification unit (FSRU). Petrobangla will have to pay 45 cent (Tk 37) per million BTU to Summit. GTCL meanwhile will supply the gas to the national grid. The annual target of re-gasification in the terminal is 3.5 million ton. The initial estimated cost of the project is 500 million US dollar. Japan based Mitsubishi Corporation has already purchased 25 percent of the under construction terminal. The construction of the terminal started in the end of 2017. Earlier, for the construction of the terminal, Summit signed a 100 million US dollar turnkey contract with the marine contractor consortium Geocean SAS and MacGregor. Under the contract, the two organisations are working on the design, engineering, procurement, fabrication, installation and testing of the LNG storage and re-gasification terminal in Moheshkhali of Cox’s Bazaar.
Category: Gas
Bakhrabad Gas Company earns Tk 217.86 lakh in profit
November 28, 2018 Wednesday 11:56 AM By News Desk, energynewsbd.com
Bakhrabad Gas Distribution Company Ltd (BGDCL), a company of Petrobangla, has made operating profit worth around Tk 217.86 lakh during the just concluding fiscal year 2017-2018, the company said in a press release recently. At the beginning of the financial year 2017-2018, the company management had formulated an action plan and sent the directions to the field level for achieving al the business targets aiming to make BGDCL a profitable, the press release added. Bakhrabad Gas Distribution Company Ltd disclosed the information at its 38th Annual General Meeting held at the Bangabandhu International Conference Center in the capital. The additional secretary (development) of Energy and Mineral Resources Pervin Aktar, who is also chairman of BGDCL’s board of directors, chaired the meeting.
Category: Gas
Govt scraps new floating LNG projects for land-based ones
November 24, 2018 Saturday 6:10 PM By Reuters
Bangladesh will scrap plans to build additional floating liquefied natural gas import (LNG) terminals in favour of land-based stations, a senior government official said. Adverse weather is making it difficult to operate the country’s sole floating storage and regasification unit (FSRU) and, hence, Bangladesh does not plan to build any further FSRU projects, said Mohammad Quamruzzaman, managing director of the Rupantarita Prakritik Gas Company. His firm is in charge of LNG imports at state-owned oil firm Petrobangla. “We will not go for more floating LNG projects at this time. One is already online and another is expected to start in March next year,” he told Reuters. The South Asian nation began importing LNG from Qatar on a regular basis in September through the country’s first FSRU operated by privately owned US company Excelerate. The FSRU arrived in April for commissioning at the port of Moheshkhali near the city of Cox’s Bazar but its start-up was delayed by several months due to technical problems and bad weather. A second FSRU project, operated by Summit Corp with Japan’s Mitsubishi Corp as a partner, is expected to start operations in March next year, doubling the country’s import capacity to 7.5 million tonnes a year. Scrapped FSRU projects will include a project by India’s Reliance Power and another by a consortium comprising Hongkong Shanghai Manjala Power and Malaysia’s Petroliam Nasional Bhd, Quamruzzaman said. Reliance did not reply to requests for comment while Hong Kong Shanghai Manjala Power declined to comment. Petroliam Nasional did not immediately respond to a comment request. Rupantarita Prakritik has short-listed five companies for a proposed land-based terminal that can import 7.5 million tonnes per year of LNG, including Japan’s Mitsui, Osaka Gas and JERA, and two other Korean companies, said Quamruzzaman. The terminal could be built at Matarbari in Cox’s Bazar, though the details are not yet firm, he said. Developing countries that have sought LNG supplies have adopted FSRU terminals since they are typically about half the cost of land-based terminals, twice as quick to deliver and can be moved to other destinations when they are no longer needed.
Category: Gas
Govt resolves FSRU issues, to resume LNG imports
November 20, 2018 Tuesday 5:48 PM By Reuters
Bangladesh will resume liquefied natural gas (LNG) imports this week after resolving issues with its sole floating storage and regasification (FSRU) unit, a senior official said on Monday. Two cargoes, meant to be delivered on November 07 and November 15, had been cancelled as the FSRU was closed due to problems with a hydraulic line that operates an emergency shutdown valve. “The problem with the hydraulic line has been resolved now,” said Mohammad Quamruzzaman, managing director of Rupantarita Prakritik Gas Company, the unit in-charge of LNG imports at state-owned oil firm Petrobangla. The next cargo with 140,000 cubic-metre LNG will arrive on November 21, he told Reuters. No LNG has been discharged into Bangladesh’s Cox’s Bazar since October 29, shiptracking data from Refinitiv Eikon showed. Bangladesh has a long-term supply agreement with Qatar’s RasGas Co. The South Asian nation began importing LNG from Qatar on a regular basis in September. The FSRU arrived in April for commissioning in Moheshkhali port by Cox’s Bazar. A second FSRU project, operated by Summit Corp with Japan’s Mitsubishi Corp as a partner, is expected to start operations in March next year, doubling the country’s import capacity to 7.5 million tonnes a year.
Category: Gas
No gas price hike for now: BERC
October 16, 2018 Tuesday 8:15 PM By News Desk, energynewsbd.com
Bangladesh Energy Regulatory Commission (BERC) on Tuesday declared of not increasing gas prices, announced to subsidize around Tk 3,100 crore in the ongoing fiscal to maintain the status quo. The watchdog body announced its decision at a press conference at the commission office in Dhaka. In a packed hearing room of the BERC office in Karwanbazar, the declaration came amidst surprise; while many terming it a populist move by the government ahead of the election at yearend. BERC Chairman Monowar Islam was present at the press conference also attended by BERC members Rahman Murshed, Md Mahmudul Haq Bhuiyan, Md Abdul Aziz Khan and Md Mizanur Rahman. When asked whether upcoming election has played any part, Monowar Islam said, “We are not Election Commission and we did not think of election while adjusting the gas price.” “The decision was taken basing on the proposals that we receive from the gas transmission and distribution companies and our own methodologies,” he added. The BERC Chairman said the gas price hike proposals from the gas distribution and transmission companies were on the regulator’s chalkboard as liquefied natural gas (LNG) was supposed to be blend with the piped gas—because of which the average price of gas should have been hiked. “It was assumed by the companies that around 1,000 mmcfd LNG was going to be added. But in reality, after much dilly-dallying, less than 300 mmcfd LNG has so far been added. So we did not feel the necessity of hiking the price,” he said. Monowar said, the National Board of Revenue (NBR) decision of withdrawing all import supplementary and customs duties and advance trade VAT (ATV) on LNG also helped them to take the decision of keeping the gas price unchanged. The NBR move implies that 5 percent customs duty and 5 percent advance trade VAT alongside a 93.24 percent SD on LNG is no longer applicable. “So such move by the exchequer has offset the price adjustment needed to minimize the subsidy,” said Monowar. “In simpler words, the average unit price of gas is now Tk 7.19 and we needed to increase Tk 1.46 if those taxes and duties were not waved on LNG by the NBR,” Monowar said adding that a total of Tk 3,100 crore will have to be given as subsidy in the ongoing fiscal now. According to the latest circular issued by the BERC, the industry, captive power, tea-garden, commercial and household subscribers of gas now have to give two months and four months of security deposit instead of three and six. The captive, industry and tea-garden now has to give one-third security deposit in cash instead of 50 percent and 50 percent bank guarantee instead of two-third. In case of pre-paid meter, no security deposit will be needed.  Earlier, all the seven state-owned downstream entities in gas sector - six distribution companies, one transmission company - had appealed to the BERC seeking an average 75 per cent hike on the existing gas prices for different consumer groups except the household and commercial ones. The upward price revision was sought for industrial consumers, power plants, fertilizer factories, captive power plants, and CNG refueling stations. The distribution companies are Titas Gas Transmission and Distribution Company Limited, Bakhrabad Gas Distribution Company Limited, Jalalabad Gas Transmission and Distribution System Limited, Pashchimanchal Gas Company Limited, Karnaphuli Gas Distribution Company Limited and Sundarbans Gas Company Limited. While participating in the hearing, the gas entities argued that as per the government decision they had to submit their respective price hike proposals because of the high import cost of LNG as it will push up their cost substantially. The Petrobangla started supplying the imported LNG to national gas network from August 18 through re-gasification by private sector-operated floating storage and re-gasification unit. Officials said currently 300 mmcfd gas is being supplied from LNG and it will go up to 500 mmcfd in a month or two and then 1000 mmcfd gas will be flowed from next year as per a government plan.  
Category: Gas
Import duties on LNG withdrawn
October 2, 2018 Tuesday 9:07 PM By News Desk, energynewsbd.com
In a major move for the energy sector, the government has withdrawn all kinds of import duties imposed on the liquefied natural gas (LNG). The Internal Resources Department (IRD) under the Finance Ministry issued a circular in this regard on September 30, saying that the order went in effect from September 18. An official of Bangladesh Oil, Gas and Mineral Corporation, widely dubbed as Petrobangla, expected the government move to reduce the import costs on the super-chilled fuel item. Another circular could be published in a day of two, only to announce the withdrawal of supplementary duties, sources said. However, the current ceiling of value added tax (VAT) and advance income tax (AIT) will remain unchanged. Bangladesh Energy Regulatory Commission (BERC) is likely to announce newly fixed prices of gas by the current week soon after the circular is issued. A member of the energy regulatory body said there will be a gas price hike for consumers from all sectors other than the domestic and commercial ones—a move meant for adjusting the costs of expensive imported LNG costs.  
Category: Gas
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No gas in Dhamrai, Manikganj for 10 hrs on Monday
Summit signs $100m deal with consortium for LNG terminal
Chevron not winding up business in Bangladesh
Bapex discovers 700bn cubic feet of new gas reserve in Bhola
Petrobangla inks MoU with Gunvor for LNG supply
Bangladesh looks to import LNG from Indonesia
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