[🇧🇩] Energy Security of Bangladesh

[Saif]

LNG supply falls again, two fresh cargoes due on Aug 20, 23

LNG supply to the national grid has fallen as stocks at Excelerate Energy’s floating terminal have declined. Two new cargoes are likely on Aug 20 and Aug 23, a terminal official said. At 6pm Tuesday, the two terminals supplied 631million cubic feet per day (mmcfd), down 35mmcfd, or 5.3 perc

thefinancialexpress.com.bd

LNG supply falls again, two fresh cargoes due on Aug 20, 23

LNG supply to the national grid has fallen as stocks at Excelerate Energy’s floating terminal have declined.

Two new cargoes are likely on Aug 20 and Aug 23, a terminal official said.

At 6pm Tuesday, the two terminals supplied 631million cubic feet per day (mmcfd), down 35mmcfd, or 5.3 percent, from Monday night.

Domestic gas output rose slightly to 1,626mmcfd, but total supply fell to 2,257mmcfd from 2,281mmcfd.

Against daily demand of about 3,800mmcfd, the shortfall was around 1,543mmcfd.

The two terminals have a combined capacity of 1,100mmcfd.

Their supply on Tuesday was 57.4 percent of that capacity.

Petrobangla data show LNG supply at 624.6 mmcfd in the 24 hours to Aug 18, down 179.2mmcfd, or 22.3 percent, from the previous 24-hour period.

Excelerate’s terminal was supplying just over 550mmcfd, while Summit’s was providing about 90mmcfd, the official said.

Summit’s terminal was operating normally.

The official expects supply to return to normal after the new cargoes are unloaded.

Excelerate’s terminal partially resumed operations on Aug 6 after a fire damaged an electrical cable on Jul 21.

Summit’s terminal briefly stopped on Aug 13 because an LNG carrier could not berth but resumed supply the next day.

Power Plants Face Gas Crunch

Power plants received 945.1mmcfd against demand of 2,524.9mmcfd in the 24 hours to Aug 18, meeting 37.4 percent of their requirement.

Power Grid Bangladesh reported gas shortages at 23 plants or units on Aug 17, with two others facing low pressure or gas-control problems.

Thirteen of the 25 affected units produced no electricity that day.

The affected units had a combined current capacity of 3,380.22MW.

The country’s maximum generation on Monday was 15,891.47MW against current practical capacity of 28,793MW.

Other plants were offline due to maintenance, mechanical faults or expired contracts.

Another 28 units faced liquid-fuel shortages, while two reported coal shortages.​

 

[Saif]

There is a sustainable solution to the gas and power crisis

The gas crisis across the country has turned a dire state. Power outages have increased. The situation in Dhaka is severe, and it is even more critical outside of Dhaka. The situation for households and businesses is grim, and many industries have to shut down production. In this situation...

en.prothomalo.com

There is a sustainable solution to the gas and power crisis

Anu Muhammad

An economist and editor of Sarbajankatha

Workers idle away their time as factories shut down due to the gas shortage

Workers idle away their time as factories shut down due to the gas shortageProthom Alo file
The gas crisis across the country has turned dire. Power outages have increased. The situation in Dhaka is severe, and it is even more critical outside of Dhaka. The situation for households and businesses is grim, and many industries have to shut down production. In this situation, everyone was looking to the government for action. However, nothing is happening.

There appear to be at least five problems with the government's role: (1) severe inefficiency in handling the repair of the LNG terminal and the existing technical weaknesses in gas and electricity supply; (2) failure to take swift action regarding the Bhola gas field and renewable energy power; (3) blaming the common people for their own inefficiency and failures; (4) making the most of the crisis to actively fulfill the agendas of some local and foreign business groups; and (5) increasing people's burdens with unjustifiable extra bills.

We must remember that there was a time when limited gas resources in our country were being pressured for export to India by American oil companies. We should also remember who was creating the frenzy for exporting gas abroad for company interests instead of using it domestically. Many of them, at a point, also wanted to export the country's coal resources by destroying northern Bangladesh. The United States and India, the World Bank, ADB, some so-called company lobbyists, and a few minister-bureaucrat-business-media alliances were the main players in this effort. In response to public resistance, the National Committee to Protect Oil, Gas, Mineral Resources, Power, and Ports was formed.

Even the President of the United States (Bill Clinton) came to lobby on behalf of the company. Indeed, the massive movement at that time stopped the gas export. Otherwise, the little gas we are getting today would not have been possible. It is hard even to imagine how terrifying the situation would be in factories, homes, and everywhere else; we would have to import many times more oil and LNG than we do now.

Since its establishment in 1998, the 'National Committee' has emphasised three key points: First, ensuring 100 per cent ownership of Bangladesh's national mineral and natural resources by its people. Second, resources are limited, so exporting them should be prohibited to ensure they can be used entirely for the benefit of the country's people over a long period.

Third, build national capacity for oil-gas exploration-extraction and expand renewable energy. But no government has moved in this direction from then to today and has gone in the opposite direction. Dependency on foreign companies, foreign loans, and imports has increased, and many nature-destroying agreements and policies have been adopted. In the decade and a half of the Hasina government, we have seen the extreme form of this.

Due to the government's position, even though gas export was stopped by popular resistance, the energy and power sector couldn't get out of the grip of multinational and domestic looters. Instead, in 2010, the "Indemnity Act" increased their dominance. To serve their interests, a long-term dangerous master plan was developed for the power sector until 2041 through Japan’s JICA consultants. It’s due to following this path that, despite enormous expenses and environmental destruction, we face today's mega-crisis.

Even if the government changes, this path hasn't changed. Although there has been talk of updates and costly advice at different times, the main features of the 'master plan' remain the same: (1) It is linked with the interests of foreign loans-funds, consultants, and various business organisations. (2) It gives no importance to questions of Bangladesh’s geography, population density, resource availability, environmental risks, and public interest. (3) Priority has been given to foreign company dependency, imports, and loan-dependent, environmentally destructive expensive projects; in this track, various coal-based power plants that destroy lives, dangerous nuclear power plants, and a variety of LNG import projects have been taken. (4) Proposals to regularly increase gas and electricity prices have been made. (5) Although the production of electricity based on renewable energy is increasing at unprecedented rates worldwide, its position here is marginal. (6) It has no importance for national capacity.

Under this path, expensive LNG imports have been established under the guise of the gas crisis, and coal and nuclear power plants have been established. Meanwhile, there has been repeated effort to sign contracts with foreign companies by keeping provisions for gas exports, thereby increasing the advantage for those parties. No attempt has been made to develop their own capacity.

In contrast to this, on 22 July 2017, we published the 'Energy and Power Master Plan of Bangladesh (2017–2041): National Committee Proposed Draft Outline,' prepared on a voluntary basis by independent experts from home and abroad.

We have shown that both coal and nuclear means are very dangerous for Bangladesh and are major burdens financially and socioeconomically. Import-oriented dependency and reliance on foreign companies are very risky.

Our best way is to develop national capacity for gas resource extraction and actively implement strong policy and institutional measures to realise the vast potential of renewable energy. Emphasising this path would not have created the mega-crisis situation in the energy and power sector today. There wouldn’t be a need to repeatedly hike gas-electricity prices, but instead, it would be possible to ensure an uninterrupted supply and even reduce prices.

The government, the World Bank, large company groups, and their preferred bureaucratic-consultants are not willing to go any way other than imports and foreign companies. The question of national capacity is very unwelcome to them. That's why for 20 years, foreign companies have been brought in for gas exploration and extraction at sea, but no work is done.

Again, efforts continue to bring them, benefits are repeatedly increased under company pressure, one LNG import agreement after another is made. But neither the current government nor previous ones has been seen taking holistic plans and initiatives for developing a national base of capability. Not even now. The large amount of money spent on LNG import and capacity charge could have built a strong independent base in the country if a portion of it had been used to take necessary institutional initiatives, and we would not have ended up in such a predicament.

Whenever we talk about national capacity, it is said, ''It's not possible for us. We can't do it.'' Yet, if it’s said that it’s not possible despite having so many science, technology, and engineering universities in the country, then what's the use of these universities? In reality, neither our institutions nor teacher-students are being given that opportunity. Domestic and foreign corporate lobbyists have fostered a sense of ‘national inferiority,’ obstructing the country’s path towards strong, self-reliant development.

In fact, breaking down the wall of this national incompetence is the prime duty of any people's government. The solution to the current gas-electricity crisis is certainly possible. But for this, immediate changes in the problems of the current government’s role as I've mentioned before are essential to overcoming the situation in the short term.

In the medium and long term, for a sustainable and affordable system in the energy and power sector, the government's main task should be to advance with a new roadmap based on 100 per cent ownership of the people and national capacity. However, if instead, the current government remains tied to the old rope, only a few domestic and foreign groups' pockets will become fatter, but the country’s crisis will continue to grow.

#Anu Muhammad is a teacher, writer, and editor of the quarterly journal Sarbajanakotha​