Page 8 - AsianOil Week 48 2022

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Bangladesh turns to Brunei

for LNG supply

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

P8 www. NEWSBASE .com Week 48 05•December•2022