[🇧🇩] Energy Security of Bangladesh

[Saif]

Summit urges govt not to cancel its FSRU deal

Summit Group yesterday urged the interim government to withdraw its recent decision to terminate an agreement over the establishment of the group’s second floating regasification plant for liquified natural gas (LNG) imported by Bangladesh.

www.thedailystar.net

Summit urges govt not to cancel its FSRU deal

Summit Group yesterday urged the interim government to withdraw its recent decision to terminate an agreement over the establishment of the group's second floating regasification plant for liquified natural gas (LNG) imported by Bangladesh.

Summit LNG Terminal II Co (SLNG II), a unit of Summit Group, did not breach any conditions precedent of agreements signed with Petrobangla to build the "Floating Storage and Regasification Unit (FSRU)", said a Summit press release.

A condition precedent is an event that must come to pass before a specific contract is considered to be in effect, according to investopedia.com.

SLNG II said they received a notice from Petrobangla on October 7 notifying of the termination of the project situated at Moheshkhali in Cox's Bazar.

They said the notice mentioned that SLNG II did not submit a "performance bond" by June 28 or within the stipulated 90 days as per prior agreements.

A performance bond is a bond issued by a bank or other financial institution guaranteeing the fulfilment of a particular contract.

Summit, Petrobangla and Rupantarita Prakritik Gas Company had finalised a "Terminal Use Agreement" and "Implementation Agreement", it said.

The two documents were vetted and approved by the cabinet committee and signed on March 30 this year, said the statement.

"But the date (June 28) fell on a Friday (not a banking day in Bangladesh), the performance bond was delivered on the next possible working day, with acknowledgement by Petrobangla," said SLNG II.

"Our lawyers have confirmed that SLNG II had not breached any CPs (conditions precedent) of the agreements," it said.

"Even if any CP was delayed, Petrobangla did not notify SLNG II (about it) within the agreed 30-day window and had therefore deemed the CP as accepted," it added.

Summit Group is the largest private sector investor in Bangladesh's energy sector with a proven track record of developing long-term infrastructure projects, said SLNG II.

It urged the government to uphold the sanctity of contracts and to ensure that investors' rights are protected and treated fairly and equitably.

The statement said the last government took a strategic decision to make a transition from coal-fired power generation to natural gas, a cleaner energy source, in late 2020.

Following the decision, Summit Group submitted a proposal October 11, 2021 to implement an FSRU on a "Build, Own, Operate, and Transfer" (BOOT) basis, it said.

The proposal was approved on June 14, 2023, followed by two years of extensive negotiations and consultations with international law firms to address the contractual and technical challenges, it added.

In addition, a long-term "Sale and Purchase Agreement" was signed to supply 1.5 million tonnes of LNG per year, starting in October 2026.

"To fulfil the initial conditions precedent of the agreements, SLNG II has committed to invest approximately $15 million to implement the country's third FSRU," reads the press release.​

 

[Saif]

Bangladesh can generate 5 per cent electricity by 2030: report

Bangladesh can generate maximum 5 per cent of its electricity from renewable energy by 2030 given the pace the country is adopting the technology, said a report released by the Paris-based International Energy Agency on Wednesday...

www.newagebd.net

Bangladesh can generate 5 per cent electricity by 2030: report
Staff Correspondent 10 October, 2024, 05:42

Bangladesh can generate maximum 5 per cent of its electricity from renewable energy by 2030 given the pace the country is adopting the technology, said a report released by the Paris-based International Energy Agency on Wednesday.

By 2030, solar photovoltaic is projected to become the largest renewable generation technology.

Bangladesh’s renewable energy share in power generation stands at a mere 1.6 per cent, far behind its regional counterparts, the report said.

The IEA’s ‘Renewables 2024’ report highlights that while solar PV technology is expected to account for a staggering 80 per cent of global renewable capacity growth, countries in the Asia Pacific region, including Bangladesh, are struggling to keep pace.

China alone is set to account for a 60 per cent of the global renewable capacity growth.

Nations like India are leading the change with rapid renewable expansion, securing over half of the Asia Pacific region’s renewable growth from 2024 to 2030.

Philippines, Thailand, and South Korea are also set to see their variable renewable energy shares rise significantly, yet Bangladesh is mired in slow adoption and infrastructural challenges.

This stagnation not only hinders Bangladesh’s energy security but also limits potential economic benefits associated with renewable energy deployment.

As the IEA notes, the accelerated deployment of low-cost renewable technologies, especially solar PV and wind, could provide Bangladesh with substantial economic and environmental advantages.

The country’s ongoing reliance on imported fuels for power generation, however, exacerbates its energy security concerns, further emphasising the urgent need for a robust transition to renewable energy sources.

‘Policymakers are embracing solar and wind like never before, but they are still two steps behind the reality on the ground. The market can deliver on renewables, and now governments need to prioritise investing in storage, grids, and other forms of clean flexibility to enable this transformation. The next half decade is going to be one heck of a ride,’ Ember’s director of global insights Dave Jones quoted in a press release issued on the occasion of the report’s release.

To avoid falling further behind in this global energy revolution, Bangladesh must urgently implement supportive policies and investment strategies aimed at boosting its renewable energy capacity, the report said.​

 

[Saif]

Petrobangla to import LNG worth Tk 6.57 billion from Singapore

State-owned Petrobangla (Bangladesh Oil, Gas and Mineral Corporation) will import a cargo, containing 3.37 million MMBtu of liquefied natural gas (LNG) from the international spot market at a total cost of Tk 6.57 billion. Gunvor Singapore Pte Ltd will supply the amount of LNG and per MMBtu price

thefinancialexpress.com.bd

Petrobangla to import LNG worth Tk 6.57 billion from Singapore
UNB
Published :
Oct 09, 2024 19:45
Updated :
Oct 09, 2024 19:50

State-owned Petrobangla (Bangladesh Oil, Gas and Mineral Corporation) will import a cargo, containing 3.37 million MMBtu of liquefied natural gas (LNG) from the international spot market at a total cost of Tk 6.57 billion.

Gunvor Singapore Pte Ltd will supply the amount of LNG and per MMBtu price will be $13.93, according to UNB.

Advisers Council Committee on Government Purchase (ACCGB) approved a proposal for the purchase during a meeting on Wednesday with Finance Adviser Dr Salehuddin Ahmed in the chair.

The ACCGB also approved four other proposals, including imports of lentils, and fertiliser.

The committee also approved a proposal of the Trading Corporation of Bangladesh (TCB) to procure 10,000 metric tons (MT) of lentil from Payel Traders of Chottagram at a cost of Tk 963.9 million.

The supplier was selected through an open tender.

A proposal of Bangladesh Agriculture Development Corporation (BADC) received approval of the committee to import 30,000 MT of TSP fertiliser from OCP SA of Morocco at a cost of Tk 1.49 billion with each MT at $415.

The Ministry of Agriculture moved the proposal to import the bulk fertiliser under a state-level contract.

Two proposals of Bangladesh Chemical Industries Corporation (BCIC), moved by Industries Ministry received the nod of the ACCGB to import urea fertiliser.

Under the proposals, the BCIC will import 30,000 MT of bulk granular urea fertiliser from SABIC Agri-nutrients Company of Saudi Arabia at a cost of Tk 1.28 billion with each MT at $356.17.​

 

[Saif]

Government no longer sets gas prices: Energy adviser

The government does not determine the price of gas, says Power, Energy and Mineral Resources Adviser Fouzul Kabir Khan. During a visit to the Begumganj-4 (West) drilling site in the Sonaimuri Upazila of Noakhali On Saturday, Fouzul explained that the Bangladesh Energy Regulatory Commission is resp

thefinancialexpress.com.bd

Government no longer sets gas prices: Energy adviser
Published :
Oct 12, 2024 21:49
Updated :
Oct 12, 2024 22:13

The government does not determine the price of gas, says Power, Energy and Mineral Resources Adviser Fouzul Kabir Khan.

During a visit to the Begumganj-4 (West) drilling site in the Sonaimuri Upazila of Noakhali On Saturday, Fouzul explained that the Bangladesh Energy Regulatory Commission is responsible for setting gas prices.

“The government used to set gas prices in the past, but it no longer does. The Bangladesh Energy Regulatory Commission now determines the pricing by consulting with both consumers and LP gas importers,” the adviser said in response to questions about the two recent price hikes of bottled gas during the interim government's two-month tenure.

The adviser, while accusing previous administrations of widespread corruption, committed to maintaining a corruption-free environment, bdnews24.com reports.

“Everyone knows there has been plundering in the country. While in the interim government, we will remain above corruption. Our secretaries will also be expected to remain above corruption,” said Fouzul.

“If any corruption is detected, immediate action will be taken,” he added.

The adviser acknowledged the impact of the gas crisis on industrial production and the difficulties faced by households.

“There is a severe gas crisis in the country. We need 4,000 million cubic feet of gas, but we are only receiving 3,000 million cubic feet. As a result, we have to import gas when necessary,” he said.

Fouzul said there are no plans for new gas connections to households at this time.

“At this moment, assuring gas supply to homes would be a false promise. However, if gas supply increases in the future, we will consider this issue.”

He also said 150 wells will be drilled through the state-owned company Bangladesh Petroleum Exploration and Production Company Limited, or BAPEX, to alleviate the energy crisis.​

 

[Saif]

Bangladesh likely to keep power deal with Adani

Bangladesh is likely to set aside pricing concerns and retain a power purchase pact with India’s Adani Power in the face of supply worries and gloomy prospects for a legal challenge, two sources with direct knowledge of the matter said.

en.prothomalo.com

Bangladesh likely to keep power deal with Adani
Reuters
Dhaka/New Delhi
Published: 12 Oct 2024, 12: 35

Bangladesh is likely to set aside pricing concerns and retain a power purchase pact with India’s Adani Power in the face of supply worries and gloomy prospects for a legal challenge, two sources with direct knowledge of the matter said.

The new government has set up a panel to gauge whether its predecessor's contracts adequately protected the nation's interests, particularly projects faulted for lack of transparency that were initiated under a special expediting law.

One contract being scrutinised over price concerns is a 2017 deal to buy electricity for 25 years from Adani's $2-billion, 1,600-MW power plant in India's eastern state of Jharkhand that exclusively supplies Bangladesh.

The project meets nearly a tenth of Bangladesh's demand for power, so cancelling the Adani deal outright would be difficult, however, said one of the sources. Both spoke on condition of anonymity as the matter is a sensitive one.

Also, a legal challenge in an international court was likely to fail without strong evidence of wrongdoing, the source added.

While an exit may not be possible, the only feasible option could be a mutual agreement to reduce the tariff, the second source said.

Asked for comment on the remarks, Muhammad Fouzul Kabir Khan, the power and energy adviser, or de facto minister in the interim government, said, "The committee is currently reviewing the matter, and it would be premature to comment."

The Adani power costs Bangladesh about Tk 12 ($0.1008) a unit, an official of the Bangladesh Power Development Board said, citing the latest audit report for financial year 2023/24.

That is 27 per cent higher than the rate of India's other private producers and as much as 63 per cent more than Indian state-owned plants, he added.

Under the deal, Bangladesh has been sourcing electricity since April 2023 from Adani, along with about 1,160 MW from other Indian plants.

Adani has had "no indication" that Bangladesh is reviewing the agreement, a spokesperson in India said.

"We continue to supply power to Bangladesh despite mounting dues, which are of significant concern and are rendering plant operations unsustainable," the spokesperson said.

Dhaka is struggling to clear dues of $800 million to Adani Power, among more than $1 billion owed to Indian power companies, because of difficulty in accessing dollars to make payment.

"We are in constant dialogue with senior officials of the Bangladesh Power Development Board and the government, who have assured us our dues will be cleared soon," the Adani spokesperson added.

Adani Power was confident Dhaka would fulfil its commitments, just as the company had met its contract terms, the spokesperson added, but did not respond to a query on why its rates exceeded those of other suppliers.

Nevertheless, domestic critics, such as the Bangladesh Nationalist Party (BNP) of former premier Khaleda Zia, say pricing concerns make a review of the deal necessary.

"The deal with Adani has raised serious concerns about overpricing from the start, and it’s a positive step that the government is now reviewing it," said senior party leader Zainul Abdin Farroque.

"I hope they make the right decision."

The interim government led by Nobel laureate Muhammad Yunus took power in Bangladesh in August after deadly protests prompted then Prime Minister Sheikh Hasina to resign and flee to neighbouring India.

It has since scrapped projects such as a floating LNG terminal planned by domestic conglomerate Summit Group, with officials saying more cancellations are possible.​