The approval of loans to the value of $266 million from the Asian Development Bank (ADB) to help Bangladesh address natural gas supply constraints in a bid to spur economic growth and cut poverty could have far-reaching benefits for the country’s natural gas vehicle industry. “This project will address priority supply and network constraints to ensure sustained growth in the gas sector that is critical to the country’s economic development,” said Priyantha Wijayatunga, Energy Specialist in ADB’s South Asia Department.
While the loan is primarily aimed at improving distribution infrastructure, reliability and safety and developing more efficient management systems, all these improvements are expected to flow through to CNG fuelling station operators and NGV users, and encourage further participation and commitment to using natural gas for transportation.
An investment program to promote energy-efficient gas use will be drawn up, and training and support will be given to sector agencies.
ADB’s assistance also comes with conditions linked to regulatory reforms designed to encourage more private investment in the gas industry.
Bangladesh is currently able to provide around 70% of its total primary energy supply.