The government is considering making liquefied natural gas locally to decrease import costs to meet the domestic demand for fuel.
The Energy and Mineral Resources Division (EMRD) is consulting with Petrobangla regarding the technical and financial feasibility of turning gas into LNG extracting from Bhola. Production will begin if the feasibility test is approved. Petrobangla will produce 184mmcf of LNG from Bhola.
The feasibility study will also consider connecting the gas supply from Bhola with the national grid. As of now 50mmcf of gas is extracted from 4 wells of Shahbazpur Gas Field in Bhola.
According to officials, Bangladesh will spend about $1.7 billion to import four million metric tons of LNG annually with the cost reaching $20 billion annually by 2030.