SNG: An Alternative Pillar of Bangladesh’s Energy Security

Natural gas has been a cornerstone of Bangladesh’s industrialisation, supporting power generation, fertiliser production, textiles, ceramics, steel, glass, food processing, chemicals and many other industries. For decades, relatively affordable domestic gas helped industries remain competitive and encouraged investment in gas-dependent production. However, declining domestic gas production, limited new discoveries and growing dependence on imported liquefied natural gas (LNG) have increased the country’s energy vulnerability. International price volatility, geopolitical tensions and supply disruptions can now quickly affect domestic industries.

The challenge is no longer simply the price of gas; it is also the reliability of supply. When pipeline gas pressure falls, boilers, furnaces, kilns, captive power plants and other gas-fired equipment cannot operate at designed capacity. Factories may continue operating, but at reduced output. For continuous-process industries, even a few hours of inadequate gas supply can cause production losses, product rejection, equipment problems, delivery delays and financial penalties. This raises an important question: Can Synthetic Natural Gas (SNG) provide Bangladesh with a strategic backup and diversification option for industrial gas supply?

The answer is potentially yes, but SNG should not be viewed as a replacement for domestic natural gas or LNG. Rather, it could become one component of a broader industrial energy-security strategy. Among the different SNG pathways, LPG�"air SNG appears to offer one of the most practical short- and medium-term options. LPG can be vaporized and mixed with air in a controlled ratio to produce a fuel gas whose combustion characteristics can be engineered to approach those required by natural-gas-fired equipment. The basic process is LPG vaporization, controlled air mixing, gas-quality control and pressure regulation before delivery to the industrial gas system.

The objective is not to introduce LPG directly into a natural-gas pipeline. Instead, the LPG�"air mixture must be engineered to meet the specifications of the particular industrial gas system and its burners. For example, if a factory requiring 10 million standard cubic feet per day (MMscfd) receives only 5 MMscfd during a supply shortage, a properly designed LPG�"air SNG system could potentially provide part of the deficit. The purpose would not necessarily be to produce cheaper gas, but to keep critical production processes operating. The economic value of backup fuel therefore lies partly in avoiding the much greater cost of production disruption.

Bangladesh needs a diversified energy portfolio in which domestic gas, LNG, LPG�"air SNG, renewable gas, waste-to-gas, renewable electricity, green hydrogen and, eventually, e-SNG each play distinct roles. Domestic gas and LNG can provide a major share of the supply, while LPG�"air SNG can serve as an emergency and peak-demand backup for critical industries. 

A major technical issue is fuel interchangeability. Simply matching the heating value of natural gas and the substitute gas does not guarantee satisfactory performance. Industrial natural gas may typically have a gross heating value of around 1,000�"1,050 BTU per standard cubic foot, while propane has a considerably higher volumetric heating value. The Wobbe Index is therefore an important parameter for assessing fuel interchangeability: Wobbe Index = Heating Value ÷ √Specific Gravity. However, Wobbe Index alone does not guarantee complete compatibility. Flame speed, gas composition, pressure, burner design, combustion stability, emissions and heat-transfer characteristics must also be considered.

Before implementing an LPG�"air SNG system, industries should establish the actual specifications of their natural gas, including heating value, specific gravity, Wobbe Index, pressure, carbon dioxide, nitrogen, sulfur and other relevant parameters. The SNG mixture can then be engineered and controlled accordingly. Proper safety systems, monitoring and emergency procedures would also be essential.

SNG backup systems could be particularly valuable for textiles and dyeing, ceramics, glass, steel re-rolling, food processing, pharmaceuticals, chemicals, industrial boilers, captive power plants, steam-generation facilities, furnaces and kilns. Their economic assessment should go beyond comparing the price of SNG with pipeline gas. It should also consider avoided production losses, restarting costs, product rejection, equipment damage, delivery delays, contractual penalties and potential loss of export orders. For many industries, the real value of backup gas is the value of production continuity.

Bangladesh could also explore centralised Industrial SNG Hubs near major industrial clusters rather than requiring every factory to install an individual facility. A typical hub could include LPG storage, vaporisation, LPG�"air mixing, gas-quality control, pressure regulation and a dedicated industrial pipeline. A centralised facility could supply multiple factories, reducing individual capital requirements. A private operator or energy-service company could manage LPG procurement, storage, SNG production, pipeline operation, metering, quality monitoring, maintenance and emergency response. Customers could pay according to actual consumption or contracted backup capacity, effectively creating an Energy-as-a-Service model.

LPG�"air SNG is primarily a short- and medium-term backup solution. In the longer term, Bangladesh could examine SNG produced through gasification and methanation using coal, biomass or other feedstocks. Coal-to-SNG has been demonstrated at large scale, particularly in China, while India is also pursuing coal-gasification initiatives. However, coal-to-SNG is highly sensitive to coal prices, water availability, capital expenditure, gasification and methanation efficiency, greenhouse-gas emissions and carbon-management requirements. If coal is imported, the project would remain exposed to international commodity-price volatility. Any such proposal should therefore be compared with LNG and other alternatives on the basis of total landed and production costs, including water, carbon management, financing and infrastructure.

For Bangladesh, biomass, agricultural residues, municipal waste and renewable-hydrogen-based synthetic methane may offer more promising long-term pathways. The country produces significant quantities of agricultural and organic waste, but their potential should be assessed regionally, taking account of collection, transportation, conversion efficiency and economics. Another future option is e-SNG, in which renewable electricity produces green hydrogen that is combined with captured CO₂ through methanation. Although promising, its economic viability will depend on renewable electricity prices, electrolyzer costs, hydrogen production, CO₂ availability and methanation efficiency.

Bangladesh should therefore adopt a phased approach. Three to five gas-intensive industrial clusters could first be selected for LPG�"air SNG pilot projects. Successful pilots could be followed by centralised SNG hubs. Parallel feasibility studies should assess biomass, agricultural-residue and waste-based renewable gas, while selected projects could investigate e-SNG using renewable hydrogen and captured CO₂. Investment decisions should be based on cluster-level techno-economic studies rather than generic national cost estimates.

SNG should not be viewed as an alternative that eliminates the need for LNG. Bangladesh needs a diversified energy portfolio in which domestic gas, LNG, LPG�"air SNG, renewable gas, waste-to-gas, renewable electricity, green hydrogen and, eventually, e-SNG each play distinct roles. Domestic gas and LNG can provide a major share of the supply, while LPG�"air SNG can serve as an emergency and peak-demand backup for critical industries.

Bangladesh’s gas challenge is therefore no longer simply a question of fuel price. It is a question of industrial resilience, export competitiveness, investment confidence and economic security. LPG�"air SNG cannot replace the national natural-gas system, but with proper engineering, fuel-quality control, safety standards and project-specific economic evaluation, it could become a valuable backup for gas-intensive industries. The strategic objective should be to build an energy architecture in which disruption of any single fuel source does not bring the country’s industrial engine to a halt. SNG could become an important part of that architecture.