[🇧🇩] Energy Security of Bangladesh

[Saif]

How can Bangladesh enhance its energy security?

Continuous gas exploration and exploitation of renewable energy should be the two pillars of energy security in the country.

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How can Bangladesh enhance its energy security?​

A developing country cannot import fuels to sustain a growing economy beyond a certain limit. Bangladesh is no exception. VISUAL: STAR

Bangladesh hasn't recovered from the economic shocks caused by the Covid pandemic and the Russia-Ukraine war, as it is still experiencing a slow but continuous draining of its foreign exchange reserves and is unable to stop the devaluation of taka. The power and energy sectors have been badly impacted in this situation because of their overdependence on imported fuels. Policymakers understood that the foreign currency requirement for this increasing dependency on fuel imports would soon become unsustainable. Experts then pointed out that this situation was mainly the result of neglecting two areas: gas exploration and renewable energy. The stark realisation that the country may not be able to pay for its fuel imports led the authorities and policymakers to declare enhanced gas exploration and incentivise rooftop solar panels and solar parks.

Over the last 20 years, natural gas production in Bangladesh tripled without the addition of any substantial reserves. Exploration was grossly neglected with the belief that no major discoveries were possible, and the shortfall in supply can be easily met through the import of liquefied natural gas (LNG). The unusually low LNG prices during the last decade emboldened those who propagated the idea that it was cheaper to import LNG than to invest in gas exploration. The strong proponents of LNG import cited Japan and Korea as examples.

Domestic natural gas production reached its highest level of 2,663 mmcfd in 2017. But it started to fall the following year, reaching around 2,250 mmcfd. Thus, there has been a production decline of approximately 400 mmcfd in the last six years. At this rate, by 2030 the production will reach a dangerously low level, and to meet the daily national demand, the LNG import burden will severely stress both the dollar reserves and exchange rate.
More than two years have gone by since the alarm was raised, and all the previously promised activities are yet to bear fruit. Very recently, however, some commitments with respect to gas exploration have been made. Petrobangla has announced an ambitious plan of drilling 46 wells by 2026 and a total of 100 wells by 2028. The plan is backed up by a promise of adequate funding and removal of bottlenecks. Moreover, focus has been renewed on the long neglected Bhola gas field, while offshore blocks are also being tendered. Now we wait and see how seriously and sincerely the drilling plan is executed.

The other long neglected area is renewable energy, especially grid-tied solar power plants and rooftop solar panels. The statuses of the four solar technologies that are directly or indirectly contributing to the total grid electricity are shown in the table below. Solar parks are continuously providing electricity to the grid when there is sunlight. The other on-grid technologies are directly contributing when they are sending electricity to the grid. At other times, like the off-grid technologies, they are indirectly contributing by lowering the load on the consumer. The net effect is the same.

The achievement on this front over the last 15 years—since the passing of Renewable Energy Policy, 2008—is dismal. Only 677 MW power generated by solar energy is being contributed to the grid. The implication of this failure can be understood by analysing the daily energy curve.

Source: BPDB website

The contribution of solar PV electricity can be seen from the Daily Energy Curve figure, which shows how the demand for electricity was met on February 18; the turquoise band from early morning to early evening is the contribution to the grid. To meet demand during these hours, the grid operator dispatched oil-fired (mainly HFO but also some diesel) power plants. What is amazing here is that the full demand could not be met due to a lack of fuel despite having more than enough power plants, and we had to resort to load-shedding. It is inconceivable that when the sun is shining, there is load-shedding. The electricity supplied by HFO and diesel power plants, including load-shedding, could have been supplied by solar PV. If the grid had enough solar PV capacity, they could have saved the fuel used by oil-fired power plants as well as prevented the load-shedding. In the last 15 years, we managed to build fossil-fuelled power plants with the collective generation capacity of more than 20,000 MW, but solar PV power plants with the capacity of less than 500 MW.


If Bangladesh had grid-connected solar power plants with the collective generation capacity of 2,000 MW more, which could have been accommodated in the grid without instability issues, a lot of foreign currency could have been saved and the country would have had greater energy security. However, to accommodate another 2,000 MW of daytime solar, there must be sufficient power plants to manage intermittency (to cover for cloudy days). In the table below, it can be seen that there are gas-fired power plants (gas turbines) with less than 1,500 MW capacity that can perform this task. Of course, there are plenty of oil-fired power plants, but the unit cost of electricity from these power plants is very high. It is ironic that we need more gas-fired power plants despite the fact that nearly 50 percent of the existing plants (with more than 5,000 MW generation capacity) are sitting idle. To keep tariffs low and add more solar PV electricity to the grid, the gas-fired power plants should be simple (single) cycle, not combined cycle, of which we have plenty and which is the principal cause of overcapacity.

Source: BPDB Annual Report 2021-22

The realisation that energy security cannot be ensured by importing fuels and that domestic resources are the only means of strengthening energy security have hopefully dawned upon policymakers in Bangladesh. Continuous gas exploration and exploitation of renewable energy should be the two pillars of energy security in the country. The neglected reserves of high quality coal should also be considered. A developing country cannot import fuels to sustain a growing economy beyond a certain limit.
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Dr Ijaz Hossain is former dean of the Faculty of Engineering at Bangladesh University of Engineering and Technology (Buet).​

 

[Saif]

BD seeks over $300m loan from WB to fund three energy projects

Bangladesh has sought over US$300 million funds from the World Bank (WB) to improve the power and gas distribution and transmission networks of the country, officials said on Saturday. The Economic Relations Division (ERD) requested the WB months ago to finance two investment projects and one tech

thefinancialexpress.com.bd

BD seeks over $300m loan from WB to fund three energy projects​

FHM HUMAYAN KABIR

Published :​

Mar 03, 2024 00:35

Updated :​

Mar 03, 2024 00:35

Bangladesh has sought over US$300 million funds from the World Bank (WB) to improve the power and gas distribution and transmission networks of the country, officials said on Saturday.


The Economic Relations Division (ERD) requested the WB months ago to finance two investment projects and one technical assistance (TA) projects.

Officials said the ERD sought some US$337 million in loans for financing a gas transmission line, a power distribution line and a TA project for energy sector development.
However, the Washington-based lender is yet to reply in this regard, they added.

The state-run Gas Transmission Company Limited (GTCL) needs funds to install the Langalbandh-Mawa-Gopalganj-Khulna gas transmission pipeline through the Padma Bridge aimed at supplying natural gas to the western zone of the country.

The GTCL needs $130.76 million funds from the WB for its transmission line development works, said a company source.

Meanwhile, the West Zone Power Distribution Company Limited (WZPDCL) is going to take up the Distribution System Improvement under WZPDCL Area project that requires fund support.

The WZPDCL needs some $204 million funds for improving the power distribution lines in the country's western zone areas, including Khulna and part of Dhaka divisions, said another official at the Ministry of Power, Energy and Mineral Resources.

Besides, the ministry has sent another TA project funding request to the WB for getting $2.3 million in foreign aid.

"All the three funding requests have been sent to the WB during October-November period of 2023. However, we are yet to get any response. We will give them another reminder shortly," said a senior ERD official. "We hope the World Bank will bankroll the important projects."

Bangladesh's gas transmission lines have already been expanded to the country's southern, eastern, and north-eastern regions, but the westerns and north-western regions are still deprived of adequate supply of gas.

The proposed Langalbandh-Mawa-Gopalganj-Khulna gas transmission pipeline of the GTCL is expected to ensure the gas supply to the western Bangladesh and facilitate industrialisation.
The power distribution line improvement and expansion at the west zones will ensure uninterrupted electricity supply to the consumers.​

 

[Saif]

'High dependence on imported fossil fuels bringing trouble'

"The high dependence on imported fossil fuels has significantly impacted our energy system."

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'High dependence on imported fossil fuels bringing trouble'​

Shafiqul Alam, lead energy analyst at the Institute For Energy Economics and Financial Analysis, discusses the state of our energy sector and implications of a possible price hike in an interview with Eresh Omar of The Daily Star.

Reportedly, the authorities forecast that they will need to increase power supply by 75 percent in April, while the government is already struggling to ensure the current supply. Realistically, can the government boost generation by that much, or will load-shedding be the norm come this summer?

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It has been estimated that during summer nights in April, when the demand peaks, 17,500MW will need to be generated. If we look at recent power demands, only a few days ago, it was 11,600MW. Maximum generation, according to Bangladesh Power Development Board (BPDB) data, was 11,426MW. So, there was some load-shedding. Given our current power system capacity of around 26,500MW—without considering captive and off-grid systems—meeting that target should not be a problem. But due to the dollar crisis and because private power producers still owe payments, load-shedding will take place again.

Coal and LNG prices have significantly come down in the international market compared to last year. So, ideally, this year's load-shedding should not be as catastrophic as last year's. But a lot of it depends on how the government manages the total system. While the government took temporary measures, the economic pressure will likely remain. For example, the bonds that were issued to make payments to our private power producers have a cost—that is, the interest payments. These payments only helped oil-fired plants meet their obligation against bank loans. These power-generating units will need additional money to import fuel to produce electricity during this summer. The local gas supply situation has not improved and hence, sufficient fuel supply to gas-fired plants will be a huge challenge. This portrays a scenario where meeting summer peak demands will be difficult.

Although the government will receive international funds to import oil and LNG, this loan will have to be paid back. Given these challenges, the government has to exercise caution and be prudent in its management.

While focusing on increasing generation capacity, why did the government ignore primary energy supply over the years? And how costly is that proving?

When this government came to power in 2009, there were no other alternatives to ramping up generation capacity, because there was such a huge power supply deficit compared to demand. The initial focus on increasing generation capacity had some positive impacts, as industries grew and people's living standards improved. But in recent years, the increase in power demand could not match the trend of power system capacity expansion. Despite having enough generation capacity, we have not been able to cater to the needs of our industries; they still rely significantly on captive systems. If we could have supplied them with consistent and quality electricity, then perhaps this gap between demand and supply would not exist.

Perhaps the concern that we might not be able to find sufficient local natural gas reserves eventually tempted the government to resort to imported LNG to partially meet the demand for gas. Efforts in local gas exploration were not enough to meet the growing demand. Meanwhile, our success in exploiting renewable energy has been very limited. Once renewable energy was very expensive. But even when costs came down, we could not increase its capacity substantially. All these have increased our exposure to imported fossil fuels and their volatility in the international market. Our primary energy costs have gone up mainly due to import dependence.

The high dependence on imported fossil fuels has significantly impacted our energy system, leading to the need for upward price adjustments of energy and power in quick succession, especially in recent years. In fact, a significant amount of dollars is spent on energy imports, which also negatively affects the foreign currency reserves of the country. Besides, the government couldn't supply enough gas to industries which in turn operated at lower capacities last year. Although the industrial contribution to our GDP is on an increasing trajectory as per the Bangladesh Bureau of Statistics data, this contribution would have been even more with sufficient energy supply.
Read more

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Why are industries using captive systems? Is it because our distribution systems aren't up to the mark?

Yes, there is still a lot to be done there. And the government is working on that, but it needs to be expedited. Also, we need to supply electricity to industries consistently.

Energy security is an integral part of any country's national security. From that perspective, how secure are we, and how can the government address the ongoing crisis in the energy sector?

As our dependency on imported energy increased drastically, our energy security concerns have increased too. To become more economically efficient, we cannot rely so much on external sources for our energy; we have to look into our internal resources. Right now, there are no immediate solutions. We have to focus on long-term solutions and mainly on improving planning, coordination, proper management and good governance.

As our dependency on imported energy increased drastically, our energy security concerns have increased too. To become more economically efficient, we cannot rely so much on external sources for our energy; we have to look into our internal resources.

Still, we can take some measures for short-term relief. For example, since we struggle a lot to meet the evening peak demand for electricity, and since we are now going through a crisis moment, we could perhaps take the initiative to close shopping malls a little earlier on weekdays. The government took a similar measure when the Russia-Ukraine war started. The government can also implement a time-of-use tariff to flatten the evening peak demand slightly.

In the long term, we have to seriously explore local gas both onshore and offshore. Different studies and reports have revealed that Bangladesh has the potential for gas reserves. The Schlumberger 2011 report, for example, talked about 49 wells that should be reworked on. Aside from that, we have to expand our renewable energy capacity. Here, also, we should avoid any sudden expansion. Instead, we should increase capacity gradually. Last April, we released a study which said that Bangladesh could incorporate around 3,000MW of solar energy, and thus reduce the operation of expensive plants during the day's peak hours (when sun is available) and cut down on associated fossil-fuel imports.

While solar can help us with day peak-time energy consumption, wind can help with nighttime consumption. Wind can also help during the daytime. Ultimately, we have to focus more on renewables and improve our energy efficiency, which is something all developed countries around the world are pursuing. Our industries have already improved energy efficiency to a certain level. Many households are using efficient appliances like LED lights and air conditioners with inverter technology. Still, there is a lot of room for energy efficiency improvement on the demand side for which we must spearhead consistent measures.

Cross-border energy trade with Bhutan, India and Nepal is also something we should explore. Reportedly, we have finalised an agreement for hydropower import from Nepal. But we should also explore the potential of energy export. This region has a significant variation in energy demand patterns. For instance, Nepal and Bhutan have low energy production and energy shortages in winter—since they are hydro-dependent. But we have a significant surplus electricity capacity during the winter. This provides an excellent case to export electricity to Nepal and Bhutan during the winter. We should continue our efforts for a regional energy trade that will help both the import and export of energy.

Reportedly, the government will soon raise energy prices. How fair is it to raise prices for consumers while paying capacity charges to idle power plant owners?

Last year's data substantiates that the power sector experienced quite a hefty revenue shortfall. The difference between selling and buying prices is very high. From that angle, the government has no alternative but to raise the power tariff. But increasing tariffs alone will not solve our problems. We need to reduce the cost. Identifying the costly and inefficient power plants and phasing them gradually out will help reduce costs. We also need to forecast future power demand more accurately to minimise overcapacity, reduce capacity payments and thus contain our fiscal burden.

There are a number of plants that are currently in the pipeline—aside from those that are already under construction. We should decelerate the projects that are at the contracting and planning phases, so that our overcapacity problem does not increase further and increase the burden on the economy.

Renewable energy, particularly solar, already has an economic case here. While the cost of solar energy is much higher in Bangladesh than in many other countries, the price will further come down in the foreseeable future, making it even more economically compelling. We need to enter the competitive renewable energy procurement process, which has the potential to reduce costs.

Sustainability is another important dimension that we must not forget. We need to use our resources prudently. For example, Solar Home Systems (SHS) contributed to transformational changes in the lives of rural and far-flung people. But reportedly, many of the SHS are no longer operational after 100 percent electricity coverage was achieved. So, ultimately, it is an inefficient utilisation of resources.

Moreover, as per the requirement to obtain new grid connections, different building owners have installed rooftop solar panels. But due to lack of monitoring, many of these installations do not work and deliver little or no energy. We have to cut down on such wastes.

As the power tariff adjustment is on the card, it should be done gradually. The distributional impacts of a price hike on lower income groups, who are often disproportionately affected, should also be kept in mind. Additionally, higher energy prices will affect industrial production.​

 

[Saif]

State Minister hints at cutting fuel oil prices in days

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid has indicated reductions in fuel oil prices this week. “Regular monthly adjustments to fuel oil prices may start in a few days. The energy division is now awaiting the prime minister’s approval about this,” he s

thefinancialexpress.com.bd

State Minister hints at cutting fuel oil prices in days​

Published :​

Mar 03, 2024 19:58

Updated :​

Mar 03, 2024 19:58

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid has indicated reductions in fuel oil prices this week.


“Regular monthly adjustments to fuel oil prices may start in a few days. The energy division is now awaiting the prime minister’s approval about this,” he said while speaking to reporters at the Secretariat on Sunday afternoon, according to local media.

“As there is somewhat affordable availability of fuel oil in the global market, there could be reductions in fuel oil prices this month,” the state minister added.

Earlier on February 29, the government issued “Fuel Pricing Guidelines” through a gazette notification to set an automated price for petroleum fuels across the country.​

 

[Saif]

Bangladesh wants to import 9,000MW electricity from neighbours: Nasrul

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid today said Bangladesh and India have a huge opportunity to work together for the development of the power and energy sector

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Bangladesh wants to import 9,000MW electricity from neighbours: Nasrul​

Photo: Collected

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid today said Bangladesh and India have a huge opportunity to work together for the development of the power and energy sector.

"We want to import 9,000MW of electricity from neighbouring countries. The process to import hydro-electricity from Nepal and Bhutan has advanced," Hamid said when the Indian High Commissioner to Bangladesh Pranay Verma called on him at his office in the ministry.

He also informed the Indian envoy a deal is likely to be signed next month to import 40MW of hydropower from Nepal.

He said that the import of 500 MW of electricity from Nepal through Indian company GMR is almost final while the import of renewable energy is also in progress. The import and export from Meghalaya, Tripura, or Assam can be discussed.

He said the process of importing LNG and gas through H-Energy is almost final.

"We want to increase the connectivity with neighbouring countries including India. We need Indian cooperation in this regard," the minister said.

Nasrul Hamid said power trade will get momentum if there is a dedicated line from Nepal to Bangladesh. This will also benefit India.

He also said it is essential to have a stakeholders' meeting of both sides every month to increase the area of cooperation. "We can also work together on bio-fuel," he added

He observed that the demand for LPG is increasing. It should be considered actively as to how Bangladeshi private investors can work in India in these sectors.

The high commissioner said India's cooperation with Bangladesh in the power and energy sector is growing.

Import of hydropower from Nepal to Bangladesh is ongoing, he said, adding India is also importing about 600 MW of electricity from Nepal.

The issues on high voltage transmission lines, renewable energy, import-export of electricity, R-LNG, fuel capacity enhancement, energy efficiency, and future regional connectivity was discussed at the meeting.​

 

[Saif]

Power sector in deep crisis: Rizvi

BNP Senior Joint Secretary General Ruhul Kabir Rizvi today said the country’s power sector has plunged into a deep crisis

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Power sector in deep crisis: Rizvi​

Ruhul Kabir Rizvi. File photo

BNP Senior Joint Secretary General Ruhul Kabir Rizvi today said the country's power sector has plunged into a deep crisis.

Talking to reporters at BNP's Nayapaltan office, Rizvi said Awami League General Secretary Obaidul Quader's recent remarks on the power situation contradict what Prime Minister Sheikh Hasina has said on the issue.​

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The BNP leader said Quader claimed that hundred percent of the country's people are getting electricity supply, but the PM a few days ago stated that load-shedding on a small scale should remain in the country.

He said people of the country are suffering from load-shedding from morning to evening even though the temperature remains at a tolerable level.​

 

[Saif]

Price of 12kg LPG cylinder hiked by Tk 8

The Bangladesh Energy Regulatory Commission (BERC) today raised the price of liquefied petroleum gas (LPG) by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86

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Price of 12kg LPG cylinder hiked by Tk 8​

File photo: Collected

The Bangladesh Energy Regulatory Commission (BERC) today raised the price of liquefied petroleum gas (LPG) by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86.

This price change will be effective from 6:00pm today, indicating a slight increase in household and commercial expenses.

BERC at a press briefing today said that the price for a standard 12kg LPG cylinder will now be Tk 1,482, up from the previous Tk 1,474. This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5kg to 45kg, addressing the need for a proportional price revision across different consumer segments.

Furthermore, the price for "auto gas", the LPG variant used in motor vehicles, has also seen a revision, now priced at Tk 68.05 per litre, a slight increase from Tk 67.68.

Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company's minimal market share, which is less than five percent.

The decision to adjust LPG prices comes in the wake of rising costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East.​

 

[Saif]

Congestion on the Dhaka-Ctg highway as locals protest gas supply cut

Heavy traffic jam was reported on the Dhaka-Chattogram highway as residents of Munshiganj’s Gazaria protested the suspension of gas supply in the area by blocking it

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Congestion on the Dhaka-Ctg highway as locals protest gas supply cut​

Photo: Collected

Heavy traffic jam was reported on the Dhaka-Chattogram highway as residents of Munshiganj's Gazaria protested the suspension of gas supply in the area by blocking it.

According to locals, they occupied the busy road for 2 hours starting around noon creating heavy traffic jam on the highway. Around 2:00pm, after receiving assurance from administration, they moved from the highway easing the traffic congestion.

However, later, around 4:00pm, they again took position on the highway. The responsible officials are trying to convince them to move from the highway, reports our local correspondent.

According to locals, the Titas Gas Authority stopped gas supply to most areas of Gazaria Upazila from February 25th. They said the decision came without any notice or prior announcement.

They said the protest started when, around 11:30am, the Titas Gas Authority came to disconnect the "illegal transmission lines" in the Dori Bausia area of Bausia Union.

Gazaria Upazila Nirbahi Officer Kohinur Akhtar said, "Traffic became normal when we persuaded them and removed them from the road."

However, as of 5:00pm, thousands of men and women from several nearby villages again gathered on the highway creating heavy traffic jams.

Gazaria Bhaberchar Highway Police Officer-in-Charge, Md Humayun Kabir said, "Most of the agitators are women. They have been suffering due to a lack of gas. They want a quick solution. They were removed from the highway. But they are back again. It is causing traffic jam on the highway. We're trying to convince them to move away from the highway."​

 

[Saif]

Bangladesh to invite bids for offshore oil and gas exploration

Bngladesh will invite international bidding for oil and gas exploration in 24 blocks in the Bay of Bengal on March 10 in an effort to boost domestic energy production, the chairman of state-owned Petrobangla told Reuters on Tuesday. Bangladesh has been battling with energy shortages, with its gas

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Bangladesh to invite bids for offshore oil and gas exploration​

REUTERS

Published :​

Mar 06, 2024 00:01

Updated :​

Mar 06, 2024 00:01

Representational image

Bngladesh will invite international bidding for oil and gas exploration in 24 blocks in the Bay of Bengal on March 10 in an effort to boost domestic energy production, the chairman of state-owned Petrobangla told Reuters on Tuesday.

Bangladesh has been battling with energy shortages, with its gas reserves fast depleting and a spike in fuel prices following the Ukraine war.

"The deadline for submission of offers for the 24 offshore blocks will be the first week of September and after evaluations, we are hoping to finalise the deals by the end of this year," said Zanendra Nath Sarker.

"We're making plans to reduce supply shortages to keep gas-fired power plants and industries running," he said in an interview with Reuters in his office.

Petrobangla also plans to import 48 liquefied natural gas (LNG) cargoes from the spot market this year, upon approval from the government, up from 23 cargoes last year, other than cargoes from long-term deals, Sarker said.

Five cargoes from spot market will be imported in April while seven cargoes had been imported over the last two months, he added.

"We have also taken initiatives to drill 100 new gas wells in the country between 2025 and 2028 to boost local production," he said.

The move comes at a time when the South Asian country's gas reserves are set to completely deplete by 2033 if no new major discoveries are found.

Bangladesh has struggled to pay for imported oil and gas because of dwindling local reserves since the Russian invasion of Ukraine, forcing the country to turn last year to the International Monetary Fund for a $4.7 billion bailout.

"The dollar crisis in recent times is a global problem. But the government is giving priority to the energy and power sectors. So it will not be a barrier," Sarker said.

Bangladesh's offshore remains largely unexplored despite the settlement of a dispute in favour of Dhaka with neighbouring Myanmar and India over the maritime boundary.​

Two shallow water blocks are under contract for exploration with a joint venture of ONGC Overseas Limited and Oil India Limited where drilling has recently begun, officials said.

 

[Saif]

Bangladesh's Energy Backtrack

Through advanced coal-intensive technologies, the government is trying to keep coal alive and further expand the domestic use of imported LNG.

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Bangladesh's Energy Backtrack​

Decoding the Integrated Energy and Power Master Plan 2023

The freshly approved IEPMP seems to chalk out the coal transition from imported to domestic coal rather than transitioning from fossil fuel to renewable or clean energy. FILE PHOTO: RAJIB RAIHAN

The Ministry of Power, Energy, and Mineral Resources (MPEMR) published the Integrated Energy and Power Master Plan (IEPMP) 2023 on November 27 last year. The IEPMP was passed after revising the draft seven times.

The final draft has been widely disseminated among stakeholders. But despite multiple revisions, the IEPMP fails to demonstrate a coherent plan to attain renewable energy transition while ensuring energy security. Instead, an overwhelming presence of different advanced technologies (such as nuclear, carbon capture and storage units, hydrogen, and ammonia) have been observed. The majority of these technologies commit to clean coal and are yet to be tested for their effectiveness in reducing carbon emissions. Such a shift in narratives creates confusion among the masses regarding the government's renewable energy stance. This type of jargonal change hints at the government's willingness to keep fossil fuel use, especially of coal, alive.
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Renewable energy targets in IEPMP​

The progress in renewable energy deployment in Bangladesh has been sluggish for quite some time. According to SREDA, the renewable energy generated power in Bangladesh is 1,202 MW, and the total share stands at 4.1 percent. The lion's share of current renewable energy is from solar (both off-grid and on-grid), as 968 MW is generated from solar energy in Bangladesh. However, aligning with the prime minister's announcement, the newly launched IEPMP sets the clean energy target at 40 percent of the total installed generation capacity (23,500 MW) by 2041. Unfortunately, the new IEPMP faultily revised renewable energy to clean energy, where targets are set as 18 percent by 2030 and 40 percent by 2041. The share of renewable energy within the clean energy mentioned in the IEPMP is not even half. By 2030, of the 18 percent clean energy, 5.7 percent (1,726 MW) will be renewable, and by 2041 of the 40 percent clean energy, only 8.8 percent (5,157 MW) will be from renewable energy sources. Now, the billion-dollar question is: what makes up the remaining 12.3 percent by 2030 and 31 percent by 2041?
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Emphasis on technology for clean energy goals​

The IEPMP mentions the use of advanced technology and fuel cells to achieve clean energy targets. It includes coal-fired power plants with Carbon Capture and Storage (CCS) technology, nuclear, coal co-fired with ammonia, and hydrogen co-fired with gas (LNG) as clean energy sources. The plan explicitly mentions that to achieve the goal of 40 percent of electricity generated from clean energy sources, it will be necessary to introduce hydrogen (H2) at six percent and ammonia (NH3) at two percent.

The rationale of the MPEMR behind introducing these technologies is that Bangladesh will not be able to achieve the clean energy goals via traditional renewable energy sources. This itself seems to contradict the estimation of renewable energy potential in Bangladesh presented in the final IEPMP. According to the renewable energy generation deployment plan under the Advanced Technology Scenario (ATS), 9,500 MW can be generated from solar and 7,575 MW can be generated from wind. Biomass can generate 165 MW, with 230 MW of hydropower. Hence, a total of 17,470 MW can be generated from traditional renewable energy sources by 2041, which is almost 30 percent of the total power demand.
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Timeline of hydrogen and ammonia introduction​

The freshly approved IEPMP lays out the plan to introduce ammonia co-firing as early as 2035 and coal co-firing as early as 2037. Gas-fired power plants with 20 percent hydrogen co-firing will be starting in 2037. Later, it will be upgraded to 50 percent in 2045 and 100 percent hydrogen firing starting in 2040. The plan will introduce blue hydrogen first, but it has not yet confirmed whether green hydrogen will be introduced or not. In the case of ammonia, coal-fired power plants with 20 percent NH3 co-firing will be starting in 2035 and will be upgraded to 50 percent in 2040. After 2037, the introduction of CCS into ammonia co-firing should also be considered to further reduce CO2 emissions.
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Environmental and financial feasibility of hydrogen and ammonia​

Hydrogen and ammonia co-firing with gas and coal are not 100 percent clean and do emit carbon. Fuel cells such as hydrogen and ammonia are only environment-friendly and emit zero carbon if they are green; that is, constructed from renewable sources. Hence, only if green hydrogen and ammonia are used for power generation will Bangladesh be able to keep up with the energy transition commitment. Even if the MPEMR ends up using green hydrogen and ammonia for electricity generation, it will not be financially viable. Several pieces of literature have already demonstrated that the levelised cost of electricity (LCOE) from these sources is much higher than in traditional renewable energy sources. The IEPMP itself demonstrates that the LCOE from ammonia is USC 17/kWh and USC 14/kWh for hydrogen. In contrast, the LCOE for solar will be USC 2.7/kWh in 2030 and USC 2.1/kWh in 2050. The required investment amount of the generation capacity installations till 2050 in the IEPMP is estimated at $157 billion. The total investment for power generation from clean energy is $64.4 billion, of which it's $29.7 billion for wind (46 percent), $20.1 billion for nuclear (31 percent), $7.2 billion for solar (12 percent), and $6.9 billion for hydrogen and ammonia (11 percent).
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Lack of renewable energy planning​

CCS, ammonia, and hydrogen technologies are costly and will require hefty investment to be introduced in Bangladesh. There is no detailed plan of the necessary financial estimates for investment and maintenance of renewable or clean technologies that could be used to attain the goal of low carbon emissions. Additionally, there is no accurate policy framework for renewable energy subsidies yet. Several government decisions on renewable energy, such as the decision to phase out diesel-based power plants, as well as medium-term plans for installing solar PVs in agriculture, irrigation, and primary schools are not mentioned or reflected in the IEPMP. No feasibility study is proposed for renewable energy-related implementation in various spheres of the economy.

On the other hand, in the section that highlights power policies, renewable or clean energy policies are completely absent. Instead, a plan for the hydrogen/ammonia fuel supply system is highly emphasised. The government is planning a demonstration test essential for evaluation in Bangladesh for ammonia co-firing and studies on plant locations, transmission, and fuel supply for hydrogen. The schedule for CCS implementation for gas-fired plants and the need for preliminary studies on suitable sites and CCS technologies are already in the works.
​

De facto coal transition​

Through advanced coal-intensive technologies, the government is trying to keep coal alive and further expand the domestic use of imported LNG. The new IEPMP unreasonably assumes that domestic coal production will continue to increase by 2050. This is mainly for ammonia co-fired with coal and CCS technologies to clean coal. Overall, the freshly approved IEPMP seems to chalk out the coal transition from imported to domestic coal rather than transitioning from fossil fuel to renewable or clean energy. This indicates that the government is willing to start walking in the opposite direction of renewable energy targets.

Dr Khondaker Golam Moazzem is research director at Centre for Policy Dialogue (CPD).

Helen Mashiyat Preoty is research associate at CPD.​

 

[Saif]

Govt reduces fuel price; diesel now Tk 108.25, Octane Tk 126

The government has slightly reduced the fuel oil price today following the automated price formula

www.thedailystar.net

Govt reduces fuel price; diesel now Tk 108.25, Octane Tk 126​

Representational image. File photo

The government has slightly reduced the fuel oil price today following the automated price formula.

From 12:00am, the diesel and kerosene price will be Tk 108.25 per litre, while the petrol price will be Tk 122 and Octane price will be Tk 126.

The ministry of Power, Energy and Mineral Resources today issued a gazette notification in this regard.

Comparing the previous prices, diesel and kerosene price has been decreased by Tk 0.75, Octane dropped by Tk 4 and petrol by Tk 3.

A ministry press release said that after the latest adjustment of fuel oil price in August 2022, the premium cost of fuel import, transport cost, insurance and bank interest increased a lot due to the impact of coronavirus pandemic, Russia-Ukraine war, and tension in Middle East.

It said, from now on the fuel price will be adjusted every month following the new guideline.

The government introduced the automated fuel pricing mechanism on February 29 as per one of the conditions for the $4.7 billion loan from the International Monetary Fund.​

 

[Saif]

https://www.thedailystar.net/environment/natural-resources/energy/news/petrobangla-invites-offshore-bidding-oil-gas-exploration-3563466

Petrobangla invites offshore bidding for oil, gas exploration​

Photo: Collected

Petrobangla, the oil, gas and mineral corporation, has floated the offshore bidding tender, inviting international oil and gas companies to explore the Bangladesh maritime area in the Bay of Bengal.

The tender, named "Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024", was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad today, giving six months' time until September 9, 2024 for submission of the bids.

As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round.

The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11, and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.

The bidder, singly or in association with other companies, can bid for one or more blocks.

Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.

The features of the proposed contract include full repatriation of profit, no signature bonus or royalty, uncapped attractive gas price linked with international marker, oil price to be determined on the basis of the fair market value prevailing in South and Southeast Asia.

It entails no duty for equipment and machinery imported for petroleum operations while the contractor's corporate income tax liability will be borne by Petrobangla, and bank guarantee for performance of the minimum exploration programme.

There will be provision for assignment of interest and share-transfer and 100 percent cost recovery with a yearly cap of 75 percent.

The contractor must have a mandatory work programme consisting of 2D seismic survey and mandatory purchase of available 2D multi-client seismic data against bidded blocks to get relief from mandatory work obligations proportionately.

They will have minimum work obligation in each of the exploration periods while biddable work programme commitment over and above the mandatory programme.

Companies interested in bidding and purchasing of Promotional and Data Sales Packages may contact the Director, Production Sharing Contract, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Petrocentre, 3 Karan Bazar, Dhaka-1215, said the bidding tender.​

 

[Saif]

Govt urges foreign investors to explore maritime area

Bangladesh on Monday urged foreign investors to explore the country’s maritime area through the bidding opened the day before, offering what it said was one...

www.newagebd.net

Govt urges foreign investors to explore maritime area
Staff Correspondent | Published: 00:21, Mar 12,2024

Bangladesh on Monday urged foreign investors to explore the country’s maritime area through the bidding opened the day before, offering what it said was one of the most lucrative deals in the world.

The bidding, which will close on September 9, has already generated widespread interest among global oil companies, including prominent ones, the power and energy ministry high-ups revealed in a press conference on Monday, without disclosing their names.

Energy experts agreed with the government about the Production Sharing Contract of 2023, on which the bidding is modelled, being too profitable for private investors but differed from the view that suggested it would benefit Bangladesh with all its concessions and tax holidays.

‘It offers one of the most lucrative prices in the world,’ energy secretary Nurul Alam said at the press conference hosted by the national gas and oil company Petrobangla.

‘We don’t want to reveal names but would like to share that some companies have already reached out to us,’ he said.

Petrobangla chairman Zanendra Nath Sarker opened the press conference, announcing that the PSC spared investors payments such as royalty payments, signature bonuses, and any kinds of import duties or taxes.

The investors will need to pay a minimum bank guarantee and can transfer shares, he said, adding that investors can bid for one or more blocks alone or with other companies.

For ensuring a faster return on investment, the PSC offers 75 per cent cost recovery, he said.

A total of 24 offshore blocks are open for bidding, including nine shallow blocks. The shallow blocks are 3m to 200m deep while the deep sea blocks are 201m to 2000m deep.

The price will be linked to oil, meaning that the earlier provision of any cap on the price is no longer there.

Petrobangla officials said that this was a really attractive package, citing the example of Myanmar and Thailand, where companies needed to pay 10 per cent and 20 per cent royalty, respectively.

‘We invite the biggest companies in the world who have experience in maritime exploration to participate in the bidding,’ said power and energy state minister Nasrul Hamid.

Nasrul claimed that the bidding took a while to occur due to disruptions like the Covid-19 pandemic since the last bidding in 2016.

Nasrul thanked stakeholders for their hard work to finally make the bidding happen, including UK-based Wood Mackenzie, a multinational research and consultancy group, whose recommendations shaped the 2023 model PSC.

Bangladesh has so far held seven biddings since 1974 for gas and oil exploration, with the highest number of foreign companies entering production sharing contracts in 1974.

Bangladesh has drilled 97 wells over the past century, finding gas in 29 wells. Bangladesh’s current production capacity is about 2100mmcfd against a demand of about 5000mmcfd.

After a prolonged period of inactivity over exploration, the government passed the 2023 PSC in the election year, months before it assumed power for the fourth straight term.

Despite Bangladesh reportedly sitting on a huge gas reserve being the world’s largest delta, the government spent more money on gas imports rather than investing in the exploration or building the capacity of Bangladesh Petroleum Exploration and Production Company Limited.

‘The bidding is the culmination of a long journey taken by a syndicate of powerful people at home and abroad to get complete control over the natural resource,’ said Anu Muhammad, former member secretary of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port.

Considering tax holidays and other concessions, on top of the new pricing formula linked to the Brent oil price, the actual price of gas would be higher than the international market rate, he said.

This too lucrative contract, he said, might lead to excessive exploitation of natural resources, eventually leading to a situation where it would have to be exported.

American oil giant ExxonMobil has expressed its interest in exploration in Bangladesh in the election year. Other US multinationals, such as Chevron and ConocoPhillips, are also potential contenders in the bidding.

The power and energy state minister and the power, energy and mineral resources affairs adviser to the prime minister, Tawfiq-e-Elahi Chowdhury, did not answer the question asked about the geopolitical risks involved in inviting foreign companies to the Bay of Bengal.

An enormous gas exploration potential opened up between 2012 and 2014 after Bangladesh won over 20,000sq km in the Bay of Bengal following the settlement of maritime disputes with India and Myanmar.

Immediately after losing its maritime dispute with Bangladesh, Myanmar awarded 20 offshore blocks, mostly in the Rakhine basin off the Arakan coast, south of Teknaf, to international oil companies by 2014.

Of 26 open offshore blocks, Bangladesh has PSC for two shallow sea blocks — blocks SS-04 and SS-09, which ONGC Videsh Ltd and Oil India Ltd are jointly exploring.

The South Korean Posco International exited from block DS-12 in 2020 seeking a gas price hike.

Before exiting, Posco carried out a two-dimensional, or 2D, seismic survey over about 3,580-kilometres area, double the area it committed for the survey, detecting half a dozen potential gas spots.

ConocoPhillips got out of the PSC signed under the 2008 bidding after completing a survey of 5,750-km area in the deep sea blocks DS-10 and DS-11.

US oil giant Chevron has three onshore blocks — 12, 13 and 14 — while Singapore’s KrisEnergy has been producing onshore block 9.​

 

[Saif]

Japan chooses Bangladesh, others to get rid of surplus LNG: report

Japan’s largest liquefied natural gas buyers have surplus problems, prompting them to expand business to South and Southeast Asian countries, including Bangladesh, according to a...

www.newagebd.net

Japan chooses Bangladesh, others to get rid of surplus LNG: report
Staff Correspondent | Published: 23:52, Mar 12,2024

Japan’s largest liquefied natural gas buyers have surplus problems, prompting them to expand business to South and Southeast Asian countries, including Bangladesh, according to a report released by the United States-based Institute for Energy Economics and Financial Analysis.

The report also revealed that demand for LNG in Japan was falling for several reasons, but Japan’s LNG buyers still increased their purchases aimed at becoming a major LNG player.


The Japan International Cooperation Agency formulated Bangladesh’s latest Integrated Energy and Power Master Plan, describing gas as the friendliest fossil fuel and one of the most viable options to pursue to achieve an ambitious power generation goal.

Energy experts in Bangladesh have already harshly criticized the Bangladeshi master plan, describing it as an extension of Japan’s business plan, partly because of its overwhelming reliance on gas and partly because it included technologies—hydrogen fuel and ammonia co-firing—that Japan was developing.

‘As domestic demand falls faster than LNG purchase commitments, Japanese utilities will face an important choice,’ said Christopher Doleman, an IEEFA LNG specialist and a co-author of the report.

‘Either they can resell flexible cargoes abroad or exercise contractual volume flexibilities and cancellation rights, which may incur additional costs,’ he said.

The report finds that Japan’s largest utilities—including JERA, Tokyo Gas, Osaka Gas, and Kansai Electric—are likely to face an over-contracted position of roughly 11 million tonnes per annum (mtpa) for the remainder of the decade.

Japan’s Ministry of Economy, Trade, and Industry has set a target for companies to transact 100 mtpa of LNG by 2030. This is well above the 79 mtpa that buyers have currently contracted, but in line with recent transaction volumes, according to the report released on Monday.

Meanwhile, Japan’s Asia Zero Emission Community initiative aims to replicate its energy mix across Asia.

These policies, as well as the corporate strategies of major utilities, suggest that Japanese companies will continue to play a major role in LNG transactions, despite declining domestic demand.

JERA executives have expressed a desire to turn the company into a major global LNG portfolio player, while Tokyo Gas has said that the ultimate target is to form a Southeast Asian LNG value chain.

Based on figures from the Japan Oil, Gas, and Metals National Corporation (JOGMEC), LNG sales by Japanese companies to third countries surged from 14.97 million tonnes (mt) in FY2018 to over 38 mt in FY2021. Although domestic sales have declined, the total volume of LNG transacted by Japanese companies increased over the same timeframe.

‘Today, the volume of LNG sold abroad is nearly 50 per cent of the volume consumed domestically,’ read a line from the IEEFA report.

The IEEFA report listed reasons that led to the decline in LNG demand in Japan: resumption of nuclear power plants, increased renewable capacity, and no rise in power consumption because of demographic reasons.

Japan’s four largest utilities account for almost three-quarters of Japan’s historical LNG contracting activity.

JERA, including the contracts inherited from its parent companies, Tokyo Electric and Chubu Electric, is responsible for 40 per cent.


JERA has invested in LNG-based power plants coming online this year in Bangladesh.


JERA acquired a 19 per cent interest in Summit Power International Limited, which is an LNG importer in Bangladesh, in 2019.

The report said that JERA in 2023 revealed plans to develop LNG regasification, storage, and supply with Summit Power.

Kansai Electric, on the other hand, provides training for the operation and maintenance of thermal power plants jointly with JICA, the report said.

Japan’s Ministry of Economy, Trade, and Industry established in 2020 the New International Resource Strategy for Enhancing LNG Security focused on increasing LNG business in South and Southeast Asia.

Japan took its strategy to expand its LNG business overseas after it first over-contracted LNG in 2017, the report said.

‘That year, the government announced a $10 billion funding package to develop Asia’s LNG market, which was partly designed to position Japanese companies to capitalize on LNG trading opportunities.

In September 2019, the government of Japan announced another $10 billion funding package for the development of LNG infrastructure globally,’ the report said.

Overall, Japan’s LNG demand has fallen by 22 million tonnes since 2014, the report said.

Besides Bangladesh, Japan’s LNG buyers have investments in Indonesia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam in a wide range of areas, from power generation to gas supply to building the necessary infrastructure.​

 

[Saif]

The case for renewable energy & Bangladesh

The case for renewable energy is twofold: (1) to reduce chronic dependence on fossil fuels thereby cut down on import requirements; and (2) to diminish carbon emission that is contributing to climate change and threatening lives and livelihoods of millions of people around the world besides destroy

thefinancialexpress.com.bd

The case for renewable energy & Bangladesh​

HASNAT ABDUL HYE

Published :​

Feb 19, 2024 21:28

Updated :​

Feb 20, 2024 21:21

Technicians inspect floating solar panels installed on reservoirs in Chapainawabganj—Xinhua Photo

The case for renewable energy is twofold: (1) to reduce chronic dependence on fossil fuels thereby cut down on import requirements; and (2) to diminish carbon emission that is contributing to climate change and threatening lives and livelihoods of millions of people around the world besides destroying ecology that supports planetary stability.


As countries have developed industrially, their need for fossil fuels have increased exponentially. This has resulted in a supply- demand mismatch, pushing up the prices for fossil fuels. For developing countries this is placing a heavy burden on their budgetary resource. Increasing demand and use, on the other hand, is depleting the reserves of fossil fuels in the world. The other, the more serious, problem is the growing incidence of carbon emission that has morphed into an existential threat for mankind and all living organisms. Beginning from the Earth Summit in Rio in 1992 that, among others, set up United Nations Convention Framework on Climate Change, there has been an annual summit on climate change to monitor and take policy decisions on reducing the use of fossil fuels that contribute to greenhouse gases, including carbon emissions. Both for abiding by with the global decision to cut down in carbon emission and to reduce dependence on non-renewable energy, Bangladesh has adopted renewable energy promotion as an important policy objective.

In the Master Plan on Energy in 2020 it was envisaged that 10 per cent of total power generation will come from renewable sources. But though power generation capacity from fossil fuels has been achieved as per the goal, the same from renewable sources have fallen short of the target. Till today power generation from renewable sources has not reached 4 per cent of the total. The government has set the goal of generating 60 thousand mega watts of power by 2041 out of which 40 per cent is expected to come from renewable sources. At present the total power generation of the country is 28.134 mega watts based on captive and renewable sources. As pointed out earlier, 10 per cent of total generation was expected from renewable sources which amount to little more than 2800 mega watts. But according to the Sustainable and Renewable Energy Development Authority (SREDA) the actual contribution from this source was only 1194 mega watts which amounts to little more than 4 per cent.

According to SREDA, as of August 2023 the total capacity of power generation from renewable source stood at 1194 mega watts. Out of this, solar energy contributed 960.8 mega watts, hydro power 230 megawatts, wind power 2.9 mega watts, bio gas 0.69. mega watts and bio mass 0.4 mega watts. It has been pointed out by energy analysts that power generation from renewable sources has not picked up due to lack of adequate publicity, absence of official guidelines and meagre incentives given to private sector. Energy experts are of the opinion that about 3000 mega watts power can be generated from solar and wind energy in the country, thereby reducing the pressure on fossil fuel-based power generation.

From the experience gained so far and considering the feasibility it has been concluded that a good part of the potential for increasing power generation from solar and wind power remains untapped. The private sector is interested to invest in this sector in a big way but the tax structure acts as a disincentive. If the import of solar panel is allowed tax free or at a nominal rate this will encourage many entrepreneurs to invest. This can either be achieved through public private partnership (PPP) or through the private sector.

The technology of solar and wind power is simple enough to be used by Bangladeshi technicians and workers. If they are sent to China or Chinese experts are invited to Bangladesh technology transfer can take place within a short period. On the demand side, customers can easily be made interested in the use of solar power because of the low cost per unit of power that saves Tk 4 per kilowatt. A particular target for absorption of solar power is the housing sector where the design of the building can build in installation of solar panels on roofs and solid walls. For big factories it can be made obligatory to install solar panels to produce part of the electricity they need. It is encouraging that the business model of roof- top solar power has proved both feasible and viable. Operators, investors and commercial banks have all shown Interest in the solar rooftop business model.

Compared to solar energy, wind and hydropower is still at a fledgling stage. Only coastal areas of the country appear to be fertile grounds for exploitation of the potentials. But though limited in scope, these sources have one advantage over solar energy and that is their all weather availability. Since in renewable energy, a mix is being considered even sectors with low potential should be used.

Most important is acquisition of technical know-how at grassroots level so that repair and maintenance facilities are available at local level. This may be a potent attraction for creating demand. It has been found by solar energy providers like IDCOL that in agriculture production farmers are showing interest in using solar power instead of diesel to run their irrigation pumps because of the decentralised service system. Where garment factories are found in a cluster and it is feasible to service installed solar panels by the operator , factory owners are coming forward to use solar energy without much persuasion.

The most important source of renewable energy that is also environment-friendly is, of course, nuclear power. Leaving aside the risk of melt-down, power generated in nuclear plan is cheaper than that produced by fossil fuels. The Rooppur Power Plant, when ready for operation will make significant contribution to power generation in Bangladesh. If the second nuclear plant on the drawing board materialises, the energy sector in Bangladesh will be in a position to export power from the national grid.

Hung up on the use of fossil fuel for power generation for long, it is understandable that gaining momentum takes time. But it is gratifying that a beginning has been made and Bangladesh is poised to wean itself away from total dependence on fossil fuel-based power generation.​

 

[Deleted due to Error (Muji Iqbal)]

I wish the best for Bangladesh.

Perhaps hydroelectric, tidal, and wind energy will be good for Bangladesh.

 

[Saif]

I wish the best for Bangladesh.

Perhaps hydroelectric, tidal, and wind energy will be good for Bangladesh.

Hydroelectricity is not an option for Bangladesh because most of our land is used to grow rice and other agricultural commodities. However, Bangladesh is working on using wind and solar energy to meet her energy demand.

 

[Deleted due to Error (Muji Iqbal)]

Hydroelectricity is not an option for Bangladesh because most of our land is used to grow rice and other agricultural commodities. However, Bangladesh is working on using wind and solar energy to meet her energy demand.

How about Tidal energy? Bangladesh has a large shoreline with the Bengal Sea.

 

[Saif]

Gas crisis till April at least

Gas scarcity is likely to continue till April despite the government’s repeated assurance of scaling up gas supply during Ramadan and the irrigation season as one of the two Floating Storage and Regasification Units (FSRU) will take longer to complete maintenance works.

www.thedailystar.net

Gas crisis till April at least​

Summit’s floating storage to take another month to finish maintenance work

Photo: Summit Group

Gas scarcity is likely to continue till April despite the government's repeated assurance of scaling up gas supply during Ramadan and the irrigation season as one of the two Floating Storage and Regasification Units (FSRU) will take longer to complete maintenance works.

The Summit-operated FSRU, which re-gasifies the imported liquefied natural gas and supplies to the national grid, was supposed to resume operation after maintenance in the first week of March.​

​

But Nasrul Hamid, the state minister for power, energy and mineral resources, yesterday said that FSRU is unlikely to resume operation before March 30.

"We import 30 percent of our gas supply. Due to the lack of the FSRU, we have a shortfall of 10 percent of gas. Besides, our local gas production is also in decline," he told journalists after a meeting with the government officials of different companies related to the gas and fuel supply.

In a Facebook post yesterday, Ayesha Aziz Khan, the managing director and chief executive officer of Summit Power International, wrote: "We are pleased to see the dry-docking procedure of Summit's first FSRU at the Seatrium Benoi Yard, Singapore."

This FSRU, with a storage capacity of 136,000 cubic metres and a regasification capacity of 500 mmcfd, is being overhauled and restored to a brand new condition.

It will reach Moheshkhali by April, the post added.

Two FSRUs had been supplying around 850 million cubic feet of gas a day (Mmmcfd) until October last year when the Excelerate-operated FSRU went into maintenance and the supply dropped to 500mmcfd.

In mid-January, both the FSRUs were disconnected from the grid due to technical glitches. Consumers in Dhaka, Chattogram, Narayanganj and Gazipur faced a week of gas supply disruptions and many industries did not get gas. Households also faced acute crises over the week.

Later on January 20, the Excelerate FSRU resumed operation but the gas supply didn't increase proportionately as the Summit-run FSRU started going into maintenance.

Yesterday, the total gas supply was around 2,600 mmcfd against the demand of over 3,800mmcfd. Three out of six fertiliser factories were shut due to gas shortages.

City dwellers in different areas are unable to cook Sehri at midnight and have been experiencing gas shortages before Iftar too.

"Gas crisis has become a part of life," said Sadekon Nahar Dilruba, a resident of Khilgaon.

During the daytime, gas pressure is very low, she said, adding that the pressure increased after 1:00am on the first and second days of Ramadan and again dried out before 4:00am.

"I struggle a lot to cook Sehri and Iftar, but I have to pay a gas bill of Tk 1,080 for two stoves every month," she added.

Asked about the solution for people like Sadekon, Hamid said: "There is an option for household consumers and I will request those who have a gas shortage in their areas to use LPG (bottled liquefied petroleum gas) as an alternate solution."

At the meeting, two decisions were taken to keep the gas and power supply situation at a bearable level: the CNG refuelling stations will be kept closed for six hours (4:00pm to 10pm) a day and the schedule of irrigation pumps will be from 12am to 6:00am every day.

However, centring on Eid-ul-Fitr, from April 7 to 18, the gas stations will remain open 24 hours.

About the electricity supply, Hamid said if the fuel supply stays uninterrupted, the electricity supply will be uninterrupted during Ramadan.

"The power cuts will only happen for a short time," he said.

Yesterday, the load-shedding was over 500 megawatts across the country at around 3.00pm. The production was around 11,400MW against the demand of 11,900MW.

The power sector was getting 880mmcfd of gas against the demand of over 1,900mmcfd.​

 

[Saif]

Single-Point Mooring pumps 40,000 tonnes of crude oil from Maheshkhali to Eastern Refinery

With the government's sincere efforts, Single-Point Mooring (SPM), a deep-sea floating oil pipe, successfully pumped 40,000 metric tonnes of crude oil from Maheshkhali Pumping Station to Eastern Refinery Limited (ERL) safely and smoothly on Friday. According to a release issued by Deputy Informa

thefinancialexpress.com.bd

Single-Point Mooring pumps 40,000 tonnes of crude oil from Maheshkhali to Eastern Refinery
BSS
Published :
Mar 15, 2024 21:40
Updated :
Mar 15, 2024 21:47

With the government's sincere efforts, Single-Point Mooring (SPM), a deep-sea floating oil pipe, successfully pumped 40,000 metric tonnes of crude oil from Maheshkhali Pumping Station to Eastern Refinery Limited (ERL) safely and smoothly on Friday.

According to a release issued by Deputy Information Officer of Power, Energy, and Mineral Resources Ministry Mir Aslam Uddin, the long-cherished SPM project was commissioned through the transportation of crude oil from Moheshkhali to ERL.

“Bangladesh Petroleum Corporation (BPC) initiated the SPM project to carry fuel through pipelines from mother vessels quickly, which would also save Tk 8.0 billion per annum,” State Minister for Power Energy and Mineral Resources Nasrul Hamid told reporters earlier.

He said once the project was implemented, it would reduce oil pilferage and time for fuel oil supply across the country.

“The Awami League government, led by Prime Minister Sheikh Hasina, has instructed the SPM to unload imported crude oil from deep seas in a more efficient and time-saving manner. The SPM will also ensure energy security in the country,” the state minister added.​