Dhaka Bureau: Gas from the country’s only island district, Bhola, crosses the Meghna and Tetulia rivers and goes to Gazipur and Mymensingh via the capital Dhaka. This gas will be converted into CNG (compressed natural gas) and filled into cylinders and supplied to interested industries. Initially, the cylinders will be delivered either directly to the factories in Bhaluka, Gazipur, and Mymensingh or to the factory-installed captive power (the industry’s own power station) by road in specially converted trucks or by water barges.
On May 10, the Energy Department issued a circular regarding the supply of Bhola gas in the form of CNG to the industries of Titus. It mentions gas prices, margins of various companies, and conditions to be met by gas suppliers. This gas, in the form of CNG, will be supplied to the industries under Titus. The price of gas has been fixed at 47-60 paise per cubic meter, which is higher than the prevailing price of CNG or gas for the industrial class. Those concerned said that the price has increased mainly due to the increase in the cost of transportation. According to the increase in gas rates effective since February, the price per cubic meter in the industry is now Rs 30. And at CNG filling stations, the price of gas per cubic meter is Tk. 43.
The government is initially contracting with the private company Intraco to manage Bhola Gas. A 10-year agreement with Intraco will be signed in a ceremony organized at a five-star hotel in the capital on Sunday evening. Intraco will buy gas from the government company Sundarban Gas Company, convert it into CNG, and sell CNG to industries in the Titus Gas Company area.
According to sources in the Energy Department, 5 million cubic feet of gas per day will be brought in in the first phase through Intraco. Later, it will be increased to 20 million cubic feet. Factories facing energy crises in Bhaluka and Gazipur in Mymensingh will get priority in gas supply. 60 compressors and 238 cascade tankers are required to convert 25 million cubic feet of gas into CNG and transport it daily. Intraco will supply CNG in specially converted trucks fitted with cylinders.
Sundarban Gas Company constituted a committee of nine members to look into the matter of the transportation of bholar gas in the form of CNG. The committee submitted its report to Petrobangla on October 31. According to the report, the current daily gas demand in Bhola is 86 mmcfd. The Bhola gas field has a daily production capacity of 120 mmcfd. The surplus gas volume is 34 mmcfd.
In that report of Sundarban Gas Company, the price of gas per cubic meter was proposed at 51 taka and 12 paisa. After reviewing, the energy department and Petrobangla have finalized the price per cubic meter at 47 taka and 60 paisa. In this retail price, the price of feed gas per cubic meter is fixed at Tk 17; in the case of CNG stations, it is 35 taka. This 17 rupees includes the margin, transmission and distribution charges, gas development fund, energy security fund, and VAT of various companies, including Bapex, Petrobangla, Sundarban, and RPGCL. CNG stations get a margin of Rs 8 per cubic meter of gas sold. Intraco will get 30 taka and 60 paisa for bringing Bhola gas. In this regard, Petrobangla’s explanation is that the supplier has to travel 230–250 km from Bhola to Dhaka to bring gas. So his margin is being increased.
