Page 15 - GLNG Week 48 2022

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Bangladesh turns to

Brunei for LNG supply

SUPPLY BANGLADESH has turned to Brunei for a sup- government ordered a halt to imports of spot
plemental supply of LNG, the country’s media LNG in July due to its skyrocketing costs. How-
has reported. A delegation of officials from ever, the country is now having to ration natural
Bangladesh’s Energy and Mineral Resource gas to factories.
Division has visited Brunei’s capital of Bandar Prime Minister Sheikh Hasina last week
Seri Begawan to discuss shipments of up to 1.5 approved the resumption of spot LNG purchases
million tons during 2023. by the private sector in order to alleviate the
State Minister of Power Energy and Mineral problem faced by the industrial sector. She said
Resources Nasrul Hamid led the delegation, that as factory owners appear ready to pay more
which also discussed the possible supply of sev- for gas supplies, they can buy it from the private
eral hundred thousand tons of diesel and other sector. She said that the government would not
petroleum products. Bangladesh has previously subsidize the import of spot LNG.
imported products from Brunei during the However, it is likely that that step will result in
2014-16 period. higher prices for industrial products.
“We want to get 1 to 1.5 million tons of LNG Sheikh Hasina criticized cabinet secretaries
annually from Brunei from early 2023,” Hamid for not having more foresight into the predica-
said in a statement released to Bangladeshi ment that the country is facing. “There should
media. “The contract may be for 10-15 years. have been long-term planning for energy
Brunei has agreed to expand areas of energy import,” local media reported her as saying.
cooperation.” Meanwhile, Bangladesh and India are work-
Brunei officials have taken the proposal ing on an option that would have India export
under consideration, the media reported. In petroleum products to Bangladesh from the
October, the two countries signed a memoran- Siliguri terminal in West Bengal to Bangladesh
dum of understanding (MoU) regarding the that could begin in 2023.
supply of LNG and other petroleum products Sylhet Gas Fields Limited (SGFL), a subsidi-
during a visit to Dhaka by the Sultan of Brunei. ary of state-owned Petrobangla, announced last
Bangladesh is facing an energy shortage, but week that it has 8 million cfd of natural gas to
has found difficulty in persuading contracted add to the national grid. The gas comes from a
suppliers to increase their deliveries. And prices worked over well and the company is engaged
on the LNG spot market are too expensive for it in a programme that would add 164 million cfd
to afford. by drilling six new wells and working over eight
The country has a long-term agreement with others.
Qatar to supply 1.8-2.5 million tons annually Media reports put estimated gas demand
and another contract with Oman to deliver 1-1.5 in Bangladesh at 3,500 million cfd, but of that
million tons every year. Both countries were Petrobangla supplies an estimated 2,571.8 mil-
approached by the Bangladeshi authorities with lion cfd.
a request to boost supply, but neither were able Experts in Bangladesh claim that the coun-
to comply due to the strong global demand for try has a high potential for gas resources but that
LNG and their previous commitments. only about 10% of the possibilities have been
The shortage of gas in Bangladesh has had explored.™
a serious impact on industrial output. The

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