Maximizing the benefits from the natural gas resources of Bangladesh

Abstract

Bangladesh has 11.497 TCF of net recoverable gas. Twelve gas fields are producing about 1064 MMSCFIDay from 53 wells. (Gas is being utilized for generation of power, in fertilizer factories as feed stock and by other iFldustrial, commercial and domestic userj Does the utilization of the gas in the above purposes give the nation maximum benefit? Thc objective of this study is to harness maximum benefits from this huge gas resources. The alternative uses of the natural gas are examined to achieve its objective of the study. A method is developed to bring the benefits of the alternative uses of the natural gas to a common scale and to compare benefits. Aterm the "increased net value of the gas" through conversion into different products (INV,)is introduced to compare financial benefit. The products are arranged in the decreasing order of the increased net value and compare with the export valUe of the gas. Before any decision is taken to use gas for the best products, the domestic and/or external market of those products are searched. If there is a significant market demand for any of the product, then the searching is continued to find commercial proven processes of those products considering the economy of scale. During the selection process consideration of the environment and employment generation are also discussed. From this study it is found that methanol is the best product. INViformethanolis 3.97 US$/MCFand whichalso fulfillthe above criteriaofmarketdemand and economyof scale. eNG to replace petrol is the 2nd highest product because INVifor CNG to replace petrol is 3.2142 US$/MCF which also fulfills the above criteria power is the 3"\ highest product because INV;for power is 2.745 US$/MCF. CNG to replace diesel is the 4'h highest product because INVifor CNGto replace diesel is 2.586 US$/MCF which also fulfills the above criteria. For all the above four product, the increased net value of the gas is higher than the gas export value, GEV (2.50US$/MCF). Urea, anhydrous ammonia, LNG,- methanol to replace diesel and methanol to replace kerosene are not considered in the study because INVjfor all the product are less than 2.5 US$/MCF.