Intraco wins contract to transport gas Bhola to industries around Dhaka

It will initially transport 5 MMcfd gas and later raise the capacity to 20 MMcfd, says an additional cabinet secretary

Intraco Refueling Station Limited has landed the job to transport and distribute natural gas found in the island district Bhola to industrial zones around Dhaka.

The Cabinet Committee on Economic Affairs approved a 10-year contract with the private company in a meeting on Thursday.

“Intraco will initially transport 5 MMcfd of gas and later transport 20 MMcfd of gas in the form of CNG,” said Additional Cabinet Secretary Sayeed Mahbub Khan.

The meeting, however, did not discuss the price of gas, how much Intraco would be paid for its services or when it would begin work.

Bhola is not connected to the national distribution pipeline. Bangladesh recently discovered multiple gas deposits in Bhola, and it drew attention following a crisis triggered by the higher global fuel costs.

Tawfiq-e-Elahi Chowdhury, the prime minister's adviser for power, energy and mineral resources, in October said the government was attempting to meet the demands of industrial consumers by supplying gas from Bhola in the form of CNG.

In January, the State Minister for Power, Energy, and Mineral Resource Nasrul Hamid said transporting gas from Bhola would begin in February using river routes.

Many consumers were interested in employing CNG for industrial use, but enthusiasm petered out as supplies went up after the resumption of LNG imports with the prices falling in the international market, a Titas Gas official said.