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LNG and LPG

LP Gas:

Liquefied petroleum gas or liquid petroleum gas (LPG or LP gas), also referred to as simply propane or butane, are flammable mixtures of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles. Varieties of LPG bought and sold include mixes that are mostly propane (C3H8), mostly butane (C4H10) and, most commonly, mixes including both propane and butane.

LPG has a very wide variety of uses, mainly used for cylinders across many different markets as an efficient fuel container in the agricultural, recreation, hospitality, construction, sailing and fishing sectors. It can serve as fuel for cooking, central heating and to water heating and is a particularly cost-effective and efficient way to heat off-grid homes. LPG is bottled in cylinders of 12.5 kg and is marketed through agents.

LNG (Liquefied Natural Gas)

LNG is natural gas that is cooled to –260° F (–162° C), changing it from gas into liquid that is 1/600th of its original volume. This dramatic reduction allows it to be shipped safely and efficiently aboard specially designed LNG vessels.

Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state, at about 260°Fahrenheit, for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state.

LNG increases markets for natural gas

Where natural gas pipelines are not feasible or do not exist, liquefying natural gas is a way to move natural gas from producing regions to markets, such as to and from the processing plants to various distant places and countries. For exports LNG is shipped in special ocean-going ships (tankers) between export terminals, where natural gas is liquefied, and import terminals, where LNG is returned to its gaseous state (regasified). At an import terminal, it can be injected into pipelines for transmission to distribution companies, industrial consumers, and power plants. Most LNG is transported by large ships/tankers that are equipped with onboard, super-cooled cryogenic tanks. LNG is also transported in relatively small volumes on ships using International Organization for Standardization (ISO) compliant containers and on trucks. LNG can be used as a fuel for ships, trucks, and buses with specially designed fuel tanks. Some power plants store LNG and use it to generate electricity when electricity demand is high and their natural gas demand exceeds pipeline delivery capacity.

Why LNG Import

Gas shortage still exists in Bangladesh, with a daily average output of 2,700 mmcfd and a demand of 3,500 mmcfd of gas and the gas demand is increasing day by day. This is why the government planned to import LNG to meet future fast demands for gas.

From where will LNG be imported

LNG will be imported from Qatar, Oman and UAE to add to the national gas grid. It is a first of its kind in the country and a local conglomerate imported LNG under the Speedy Supply of Power and Energy (Special Provision) Act 2010. LNG import will impact the gas price in the country. The move will increase the expenditure in the industry and commercial sector as the cost of electricity generation will be increased.

Imported LNG price

The price of imported LNG will be higher than the price of natural gas extracted in Bangladesh. The government plans to start supplying LNG to industrial and commercial units on a priority basis after the import. The price of LNG is connected to the price of oil internationally. That means, if the price of oil increases or decreases, it has a direct impact on the price of LNG. For last few years, the price of oil has become moderate and the gas price is also moderate. In the next year the oil price is expected be higher and naturally gas price will so be higher.

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