The World Bank (WB) yesterday approved $300 million to support Bangladesh in reducing methane emissions along the natural gas value chain and increasing the effectiveness of gas distribution and end-use through pre-paid metering systems for residential and industrial consumers.
By addressing natural gas leaks and losses along the gas transmission and distribution network, reducing wastage in usage by residential and commercial users, and enhancing network monitoring capabilities, the Gas Sector Efficiency Improvement and Carbon Abatement Project will address wasting in the use of natural gas.
In Dhaka and Rajshahi Division, more than 1.2 million prepaid gas meters will be installed. According to a press release, 1.1 million prepaid meters will be installed in Greater Dhaka, covering 54% of Titas Gas Transmission and Distribution Company Limited’s residential customers, and 128,000 prepaid meters will be installed in Rajshahi division, covering the entire residential customer base of Pashchimanchal Gas Company Limited (PGCL).
In order to show that smart meters can effectively monitor and regulate gas use in the industrial sector, the initiative will also pilot roll out roughly 50 smart meters to bigger industrial users.
To enhance gas flow monitoring and aid in reducing methane leaks, it will install a Supervisory Control and Data Acquisition (SCADA) and Geographic Information System on PGCL’s network. Better monitoring in the gas network for locating and fixing methane leaks would help to minimize greenhouse gas emissions.
“Improving energy efficiency will be important for Bangladesh to achieve its 2021 Nationally Determined Contributions (NDCs) commitment of reducing greenhouse gas emissions by 2030,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.
“The project will help cut down natural gas wastage in households and industries and reduce fugitive methane emissions in gas pipelines, which are often caused by leaks from gas production, processing, transmission, and distribution.” he added.
In 2021, 68 percent of the nation’s primary energy needs were met by natural gas. Methane leakages in the oil and gas value chain are estimated to be 257 kilotons, which is about comparable to 7.7 million tons of CO2 and is 25 times more effective than CO2 at trapping heat in the atmosphere.
“Bangladesh’s biggest source of greenhouse gas emission comes from the oil and gas sector,” said Sameh I. Mobarek, World Bank Senior Energy Specialist and Team Leader for the Project. “Prepaid gas meters and advanced monitoring systems will help optimize natural gas end-use, mitigate methane leakages and lead to lower gas bills for the households and industrial users.”
The project will fund technical assistance to find and prioritize possibilities to reduce emissions in current facilities and infrastructure, as well as to detect sources of CO2 and methane emissions along the natural gas value chain.
Additionally, it will assist in creating regulatory frameworks and emissions monitoring, reporting, and verification (MRV) procedures for long-term carbon reduction in the energy value chain. These frameworks may then be put into place through investments in public and private climate financing.
One of Bangladesh’s earliest development partners was World Bank. The World Bank has given Bangladesh about $40 billion in grants, interest-free loans, and concessional credits during the course of their 50-year cooperation. Bangladesh currently has the largest IDA program in the world, with commitments totaling $15.6 billion for 53 active projects.
