[🇧🇩] Energy Security of Bangladesh

[Bilal9]

More power plants than needed

The government is continuing to ramp up the power generation capacity even though the electricity demand did not increase as per projection, putting an additional price burden on consumers, said energy experts.

www.thedailystar.net

View attachment 4207

Hard to believe the govt. is still buying electricity from India (Adani et al) in spite of over capacity in this area and several large electricity plants still in the pipeline (including nuclear). The only solace is that demand for electricity is expanding rapidly and that most plants can be left idle 50% or more for now because they have multiple turbines in one plant. Demand is going to catch up very rapidly however - the way new industrialization with new export zones are being built and commissioned all across Bangladesh.

 

[Bilal9]

Matarbari Power Plant: Tk 93 lakh for two pipe cutters!

On January 9, 2024, a small shipment weighing 344.5 kilograms arrived at Chattogram port. The shipment worth $250,863 (Tk 2.75 crore) contained 19 pieces of small tools such as hammer, metal pipe cutter and silicon guns imported for state-owned Coal Power Generation Company Bangladesh Limited...

www.thedailystar.net

Matarbari Power Plant: Tk 93 lakh for two pipe cutters!

View attachment 4520

On January 9, 2024, a small shipment weighing 344.5 kilograms arrived at Chattogram port. The shipment worth $250,863 (Tk 2.75 crore) contained 19 pieces of small tools such as hammer, metal pipe cutter and silicon guns imported for state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL), which is constructing Matarbari power plant in Cox's Bazar.

During physical inspection on January 11, customs officials found that the price of two German-made hammers was shown Tk 1.82 lakh. Similarly, the price of two pipe cutters made by the same German company was shown Tk 92.99 lakh.

Puzzled by such abnormal prices, the customs authorities declined to release the items and subsequently sought explanations from the CPGCBL and Power Development Board. The Daily Star has seen the letters dated February 4, 2024.

On March 27, this newspaper visited the website of the German company, KS Tools, to check the prices. The website shows the price of a look-alike hammer is 13.90 euros or TK 1,668 each, which is 55 times or 5,500 percent less than the imported price.

The company website also shows the price of a pipe cutter that matches with the imported one is 60.27 euros or Tk 7,232 each, 642 times (64,200%) less than the imported value.

Customs sources say that not only these two items, all 19 items of this shipment have been imported at absurdly high prices.

Documents from the NBR show import cost of these products has been shown 5 to 18,545 times higher than the value recorded in NBR's export-import database.

This database is basically a storage of foreign trade-related information, including export-import prices of various items, that the customs authorities use as a reference point.

The shipment in question came from Germany and the items, which also included locking pliers, toolboxes, chisels, spanners and car fitter sets, were supplied by KS TOOLS Werkzeuge, on behalf of Japan's Sumitomo Corporation, documents show.

According to the physical examination report by the customs authorities, the price of the pipe-cutting tool is 18,545 times more than the database value, the pipe wrench 1,053 times more, the monkey pliers 912 times more, the screwdriver 833 times more and the hammers 114 times more.

Contacted on February 28, Matarbari Power Plant Project Director Abul Kalam Azad said, "We think the prices are normal even though the customs said the prices are abnormal. The price may seem higher than the market price as the items were tailor-made upon a special order."

The two pipe cutters were made using "special metal" for use in the power plant, he said. "So, the price is high."

However, import documents show that the tools would not be directly used in the power plant. Besides, the tools are freely importable as they are used in all types of construction and routine maintenance work.

When The Daily Star sought a copy of the "special order" placed to the manufacturer for the pipe-cutting tool, Azad, also a director of CPGCBL, could not provide one.

Customs sources also confirmed that CPGCBL did not provide them with any such special order either.
Mohammad Fyzur Rahman, commissioner of Chattogram Custom House, said his office recently received the response from PDB and CPGCBL about the held consignment.

In the letters, the authorities mentioned that the imported products were priced as mentioned in the contract with the vendor.

"They also mentioned that it is common for certain products to have varying prices due to bulk importation. If the departments and ministry concerned have no objections regarding the additional price, then there is no need for any action," he said, adding that such incidents have occurred in the past as well.

The consignment will likely be released after collecting the duty as the items were not listed for duty-free import by the National Board of Revenue (NBR), Fyzur told The Daily Star on March 17.

CPGCBL appears to have gotten away with importing various goods at inflated prices for the project before, according to NBR records.

Multiple consignments of other agencies containing such products were also cleared through customs in Chattogram and Mongla from October 16 last year to January 15 this year, customs sources say.

The declared value of these products ranged from 5 times to 18,545 times more than the recorded value of the products in the NBR database.

"These consignments were imported under duty-free facility as those goods were brought for a fast-track mega project and the customs released the goods easily as those were imported by a state-run company," said a customs officer who examined at least two such consignments.

The official did not give the name of that state-run company and spoke on condition of anonymity as he is not authorised to speak to the media.

One of the consignments cleared in December last year contained ethernet switches, also known as network switches, for Matarbari project.

The price of the ethernet switches by German brand Hirschmann was $4,881.83 on the company website, but the import value was shown to be $205,218 (about Tk 2.3 crore).

Asked why the customs cleared the consignment, another customs official said, "We issued letters to PDB, CPGCBL and the project director for an explanation. Both the authorities informed us in writing that the goods were specially made for the project."

However, the user manual, catalogues and other information about the switches did not suggest the items were custom-made.

"If the project implementing authorities [CPGCBL and PDB] are okay with the additional expenditure, then we have nothing to do," he said, asking not to be named to speak candidly on the issue.

Dr Iftekharuzzaman, executive director of Transparency International Bangladesh, said the role of customs officials in blocking the latest consignment is admirable.

"The claim of procuring hand tools like pipe cutters, hammers and screwdrivers by special order is ridiculous. This could possibly be an example of large-scale corruption," he said.

He urged the government to take actions against those involved in the "scheme" and benefiting personally by overpricing products.

Energy expert M Shamsul Alam also dismissed the abnormally high prices of the tools as laughable.
"Such extraordinary prices may seem normal to those who benefit from them," said Shamsul, also dean of the faculty of engineering at Daffodil International University.

"It is not a new phenomenon. But at the end of the day, it is the consumers who have to bear these additional expenses," he noted.​

Just looting even at lower levels. Massive looting. :-(

 

[Saif]

Looting public money is the middle name of Awami League. They have targeted infrastructure and energy sectors to massively loot public money and launder it in foreign countries. Sheikh Mujib once said, "সবাই পায় তেলের খনি আর আমি পাই চোরের খনি"।

 

[Saif]

Bangladesh, Thailand nearing energy cooperation MoU: Nasrul Hamid

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that the signing of a Memorandum of Understanding (MoU) between Dhaka and Bangkok to increase energy cooperation is at an advanced stage. “We hope the deal will be signed shortly. The cooperation in the energy secto

thefinancialexpress.com.bd

Bangladesh, Thailand nearing energy cooperation MoU: Nasrul Hamid
UNB
Published :
Apr 09, 2024 20:59
Updated :
Apr 09, 2024 22:23

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that the signing of a Memorandum of Understanding (MoU) between Dhaka and Bangkok to increase energy cooperation is at an advanced stage.

"We hope the deal will be signed shortly. The cooperation in the energy sector will help increase the cooperation in the economic, industrial and social sector as well," he told Thai Ambassador to Bangladesh, Makawadee Sumitmor, at his office in the Secretariat on Tuesday.

The Thai envoy expressed her country's interest in investing in deep sea oil and gas exploration and also supplying LNG.

She requested the state minister for facilitating in this regard during the Prime Minister's visit to Thailand.

Nasrul Hamid welcomed the Thai Ambassador and said that Bangladesh will encourage all kinds of investment in the energy sector.

"We welcome the interest of Thailand's PTT Global LNG Company Ltd. We give preference to trading companies and production companies in LNG supply", he said.​

 

[Saif]

Despite Summit’s LNG terminal resuming, gas supply still lags as Bibiyana goes on maintenance

Despite resumption of the Summit Group’s Floating Storage and Regasification Unit, one of the country’s two LNG terminals, overall gas supply failed to improve. Rather, it witnessed a further fall due to the start of the Bibiyana Gas field’s maintenance programme. However, offici

thefinancialexpress.com.bd

Despite Summit's LNG terminal resuming, gas supply still lags as Bibiyana goes on maintenance
Load shedding on in parts of the country
UNB
Published :
Apr 15, 2024 18:48
Updated :
Apr 15, 2024 18:48

Despite resumption of the Summit Group's Floating Storage and Regasification Unit, one of the country's two LNG terminals, overall gas supply failed to improve. Rather, it witnessed a further fall due to the start of the Bibiyana Gas field's maintenance programme.

However, officials said the Bibiyana Gas field, one of the country's largest gas supply sources, went into routine maintenance on April 13 and will come back to full production within three days on April 16.

Officials from both state-owned Petrobangla and Chevron, the operator of the Bibiyana Gas field, noted that they are hopeful of getting full-scale supply from Tuesday.

Petrobangla's official data shows that the production from BIbiyana gas field came down to 453 million cubic feet per day (MMCFD) on Monday from its regular production of 1200 MMCFD.

Official sources said, the Summit Group finally became successful in commissioning its LNG terminal and resumed re-gasification of imported LNG on April 12.

The official data of state-owned Petrobangla shows that the supply of imported gas has increased by 162 million cubic feet (MMCFD) to 792 MMCFD from 630 MMCFD following the commissioning of the Summit Group's LNG terminal.

"The gas supply has further increased to 936.30 MMCFD on April 14," a senior official of the Petrobangla told UNB.

The country has two LNG terminals, set up by the private sector, in Maheshkhali having total regasification capacity of 1100 MMCFD. One is owned and operated by US-based Excelerate Energy having 600 MMCFD capacity while another one is owned and operated by Summit Group having 500 MMCFD.

The gas supply situation witnessed a fall when the Summit Group's LNG Terminal went into a routine maintenance programme in the first week of March. It was scheduled to return to service and resume production on March 3.

"But initially it failed to come back to production as per schedule and finally it resumed production a few days later," the Petrobangla official said.

Official data shows that the country's gas supply was 2,345 MMCFD on Sunday and Monday against low demand of 3,632 MMCFD at the tail end of the Eid vacation.

Meanwhile, the official data shows that despite a low demand in the power supply, the country had to experience load shedding of over 300 MW on Monday during the day's peak period.

The PGCB Data shows the country's load shedding was recorded to 305 MW at 10 am when the demand was 11,400 MW.

The evening peak demand was forecast to be 14,000 MW on Monday and the officials apprehend more loadshedding tonight.​

 

[Saif]

Govt must fish renewable energy sector out of ills

PROGRESS in the renewable energy sector, which has even failed to take off in 16 years since the adoption of the renewable energy policy in 2008, has been mired...

www.newagebd.net

Govt must fish renewable energy sector out of ills
03 April, 2024, 00:00

Image description

PROGRESS in the renewable energy sector, which has even failed to take off in 16 years since the adoption of the renewable energy policy in 2008, has been mired in inexperience and mismanagement, which has over the years let in a group of entities largely composed of owners of poultry business, feed mill, real estate trade, infrastructure development and construction, apparel factories, a medical college hospital and a human resources export agency. Experts, who blame the situation for a slow expansion of the renewable energy market and costs far higher than the global average, say that this has happened because of lucrative tariffs that promise high profits, mostly effected in an intransparent manner, holding off well-meaning companies that could meaningfully take the sector forward. Experts say that a solar power project should ideally take 13 months for completion, but because of what the sector is mired in, it takes years to begin the construction after the signing of the power purchase agreement with the Power Development Board.

The whole process, as experts say, often involve hidden costs and much of lobbying which stops reputed entities from investing in renewable energy. There are only 10 solar power plants with a combined capacity of 459.3MW in operation while the government had plans for a 10 per cent of its power from renewable sources by 2020.

The renewable energy sector in Bangladesh, as experts say, is too lucrative and it could attract investors of all kinds. This is why some investors in renewable energy are local giants that are also involved in the business of fossil fuel, which accounts for about 97 per cent of the installed power generation capacity of about 26.85GW. They are said to have earned millions of dollars in capacity payment, for the power not produced, and in other costs since 2008, as fossil fuel-based generation capacity has jumped more than five times since then. In such a situation, energy experts fear that the inordinate delay in the implementation of renewable energy projects, which spans up to eight years as is observed in Bangladesh projects, is deliberate as delayed renewable projects mean more use of fossil fuel and more profits. Renewable power tariff is also high keeping to global standards. The International Renewable Energy Agency in 2022 estimated the global average cost of solar power at Tk 5.42 a unit while tariff in Bangladesh ranges from Tk 7.68 to Tk 20.87, averaging more than Tk 10 a unit. An Institute for Energy Economics and Financial Analysis expert says that reasonable solar power tariff in Bangladesh should be Tk 8.5 a unit, which can be reduced to Tk 6.5 with some government initiatives. Because of all such problems, not a single quality renewable power project has been implemented in more than a decade and a half.

The renewable energy sector, thus, appears to be another handle of the government to transfer public money to private pockets riding on ill designs and mismanagement. The government must, therefore, purge the energy sector of all ills without delay.​

 

[Saif]

Petrobangla seeks to complete drilling of 48 wells by 2025

State-owned oil, gas and minerals corporation Petrobangla seeks to complete the drilling of a total of 48 wells at different gas fields hoping to add 618 MMCFD to the national grid by 2025.....

www.newagebd.net

Petrobangla seeks to complete drilling of 48 wells by 2025
United News of Bangladesh . Dhaka 19 April, 2024, 19:32

Representational image. | UNB photo.

State-owned oil, gas and minerals corporation Petrobangla seeks to complete the drilling of a total of 48 wells at different gas fields hoping to add 618 MMCFD to the national grid by 2025.

This will be done through Petrobangla's own companies and outsourcing contractors by next year.

'We're very serious about implementing the plan on time and if necessary, we will seek a waiver from the provision of a mandatory feasibility study to avoid a time-consuming process,' said a top official of the Petrobangla.

The official preferred anonymity as he is not authorised to talk to the media.

The plan is to add a total of 618 million cubic feet per day gas to the national grid when power, industries as well as many other sectors are reeling from gas shortage.

According to an official document, of the planned 48 wells, 23 will be drilled using the rigs of the BAPEX (Bangladesh Petroleum Exploration and Production Company Limited) while the remaining 25 will be done by the outsourcing of the contractors at the existing onshore gas fields under a crash programme.

'These wells will be drilled as part of the government's ongoing plan to increase the gas production from the local gas fields,' another top official of the Petrobangla said, also wishing anonymity.

He, however, declined to comment officially as some of the wells' approval process remains pending with the government's highest authority.

Petrobangla took up the programme against the backdrop of declining gas production with depleting reserve positions.

The country's 20 gas fields, out of a total of 29, produce between 1,600 and 1,900 MMCFD gas while another 1,000 MMCFD gas is being imported to meet the demand for about 4,000 MMCFD.

Officials said the local fields are depleting fast and gas reserves are declining.

Currently, there are 9 trillion cubic feet of gas in the country's reserve, out of a total of 30 TCF while 21 TCF has already been produced.

The gas demand is growing fast as many of the gas-fired power plants and new industries are being set up across the country.

As per scenario -2 of a projection of the Petrobangla, the country's gas demand will go up to 5,092 MMCFD in 2029-30, 6072 MMCFD in 2034-35 and 6,986 in 2040-41.

The plan for drilling 48 wells is a part of the ongoing plan under which drilling of some wells has already been completed, said another official of Petrobangla.

These wells include Bhola North-2, Togbi-1, Elisha-1, Srikail North-1, Shariatpur-1, Titas-24, Beanibazar-1, Koilash Tila-2, Sylhet-10, Rashidpur-2, and Sundalpur-3.

These newly drilled wells have now been contributing 126 MMCFD gas to the national grid, noted the official.​

 

[Saif]

Reviving the prospect of energy sources

When things go awry at policy level, the state can choose from two courses of action. First it can begin to take proactive measures in an effort to rectify past mistakes, regardless of how much pain it causes to the economy in the short-term so that the medium- to long-term is smoother sailing; or,

thefinancialexpress.com.bd

Reviving the prospect of energy sources
SYED MANSUR HASHIM
Published :
Apr 19, 2024 22:02
Updated :
Apr 19, 2024 22:02

When things go awry at policy level, the state can choose from two courses of action. First it can begin to take proactive measures in an effort to rectify past mistakes, regardless of how much pain it causes to the economy in the short-term so that the medium- to long-term is smoother sailing; or, it can stick to its failed policy and hope that things will work out somehow in the long run. For Bangladesh, the state of energy planning has come to a crossroads. Things are not rosy anymore. Since sourcing energy over the last decade has increasingly become import-based, there is little the government can do except going along with foreign market dictates.

Unfortunately, the economy is no longer doing very well, because the global economy isn't doing particularly well either. Exports are down, imports are up, particularly energy-imports. These cost foreign currency, something that is in short supply these days. When the government's own experts working in the various public energy sectors as well as the nation's best known energy experts warned of the risk run by Bangladesh for its import dependence, they were ridiculed. These individuals were sidelined.

Their predictions have now become a reality. The continual upward revision of prices of energy (nearly 50 per cent is now imported) to benefit a handful of companies and their local Bangladeshi partners have now become an uneconomical proposition. This makes no financial sense. While retail consumers may reduce consumption, what does industry or agriculture do? Can they afford to reduce consumption of the basic driver for their economic activities? The answer is a resounding NO. Hence, prices of goods produced will continue to rise, inflation will keep going up, consumption will fall and "shrinkflation" will become the norm.

How does this benefit the economy? To be more specific, how does it benefit the government in power? Yet, energy planners are sticking to a failed regime of policies that is going to drive the economy to the ground. The pushback that was envisaged has arrived. The foreign producers of energy are not willing to take any more IOU(s) from state bodies. As reported in this newspaper on April 06, "American oil-major Chevron has deferred its $65-million Jalalabad compression project in northeastern Bangladesh following nonpayment of $220 million in overdue gas bills, market sources said. Chevron Bangladesh wrote to state-run Petrobangla on Thursday about its decision not to execute its natural-gas-compression station near Jalalabad gas field in time."

Much has been written about the state's inability to pay foreign companies that sell the country primary energy or electricity. Earlier, reports have been published about how another foreign company's bill for supplied electricity jumped 100 per cent in the span of six months. A short answer to a long question is quite simple: the country does not have requisite foreign exchange to meet all its obligations. There is no point assuring that things will improve soon when the situation points to the contrary.

Petrobangla hasn't been able to pay for gas produced by Chevron since September 2022. Reportedly, the gas purchase and sales agreement between the companies has the clause whereby Chevron is at liberty to "shut production if non-payment exceeds a five-month period." Furthermore: "According to article 14.3 of the agreement, the seller shall not be obligated to supply gas if the buyer defaults on payment for over five months from the date payment is due. In this event, the seller does have the right to defer delivery of gas without violating this agreement or the PSC until all unpaid payments for gas delivered to the buyer are three months' dues".

So contractually, this international oil company (IOC) has acted within its legal rights when it reduced production of gas or refused to engage in further activity.While this particular IOC is engaged in national gas production, what excuse is there for importing energy sources from abroad when it has ample studies pointing to existence of highly probable gas pockets and reserves on-shore? Why it continues to dilly-dally on the exploration of proven coal reserves? Why the foot dragging continues on the offshore bidding process? Let there be no confusion that the months ahead would see harsher measures from producers and suppliers of energy and electricity when debts continue to mount for "non-payment" of dues. There is no magic wand for solving the energy crisis the nation faces today. Unfortunately, the road to recovery isn't being expedited.​

 

[Saif]

Govt set to augment LNG imports from spot market

The government has decided to import a total of 23 spot LNG cargoes during the January-June 2024 instead of the previously set 13 to reap the benefits of lower prices in the international market. The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resou

thefinancialexpress.com.bd

Govt set to augment LNG imports from spot market
M AZIZUR RAHMAN
Published :
Apr 21, 2024 00:21
Updated :
Apr 21, 2024 00:21

The government has decided to import a total of 23 spot LNG cargoes during the January-June 2024 instead of the previously set 13 to reap the benefits of lower prices in the international market.

The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) has instructed the state-run Petrobangla to import 10 more cargoes, a senior Petrobangla official told the FE on Saturday.

To augment spot LNG imports, the state-backed Rupantarita Prakritik Gas Company Ltd (RPGCL) has already floated tenders to import two more spot cargoes in May to meet the mounting gas demand during summer.

Both cargoes would be supplied to Moheshkhali island, with an option to discharge them at either of the country's two floating storage and regasification units (FSRUs), said the official.

The volume of LNG (liquefied natural gas) in each of the cargoes will be an estimated 3.36-million British thermal unit (MMBtu).

With these two, Bangladesh will be importing five cargoes for May deliveries, which is the highest number of spot purchases in a month so far since its initiation of such procurement from 25 September 2020, the official added.

The South Asian country has been importing a total of four spot LNG cargoes in April.

It has already awarded three delivery tenders to three separate suppliers for May deliveries with the purchase prices ranging below $10 per MMBTu.

It awarded the May 04-05 delivery tender to Vitol Asia Pte Ltd to supply LNG at $9.68 per MMBTu, May 09-10 delivery tender to Total Energy and Power Ltd to supply LNG at $9.89.

Gunvor Singapore Pte Ltd will supply a cargo for May 14-15 delivery window at $9.49 per MMBTu.

With May's five, according to the official, the country will be importing a total of 16 cargoes from spot market since January 2024.

The RPGCL deals with LNG trading and necessary infrastructure in Bangladesh.

Petrobangla assumes that the purchase rate of spot LNG will continue to be lower amid a supply glut of the fuel in the international market at least for next several months, he added.

Apart from three spot cargoes, Bangladesh will be importing regular cargoes from two long-term suppliers - QatarEnergy and OQ Trading - in May to meet the mounting demand for natural gas.

Its LNG purchase price from long-term suppliers hover around $11 per MMBTu, which is above 10 per cent of the price than spot LNG, according to market sources.​

 

[Saif]

Rural areas bear the brunt of power outage

Hundreds of thousands of people in the rural areas have been subjected to hours of power outage despite record-setting generation of electricity over the last few days.

www.thedailystar.net

Rural areas bear the brunt of power outage
1,000MW load shed despite record generation

Photo: Collected

Hundreds of thousands of people in the rural areas have been subjected to hours of power outage despite record-setting generation of electricity over the last few days.

According to Bangladesh Rural Electrification Board (REB), its subscribers in Mymensingh, Jamalpur, Kishoreganj, Netrakona, Cox's Bazar, Narsingdi, and Rangpur are suffering the longest outages as the country is seeing temperatures of over 42 degrees Celsius.

A majority of REB's 3.58 crore subscribers are seeing power cuts every day.

On April 22, Bangladesh Power Development Board (PDB) produced 16,233 megawatts around 9:00pm, breaking the previous record of 15,648MW on April 19, 2023. But people in Mymensingh's Muktagacha barely had electricity that night.

Hosne Ara Begum, a resident of Mankun area, said, "There was a two-hour outage from 7:30pm. Only 15 minutes after it was restored, there was another one-and-a-half-hour outage. Throughout that night, we only had electricity in 10-15 minute at a go. The daytime situation was not different."

Besides enduring the oppressive heat, Hosne Ara is also struggling to keep her fish farming business running.

"It usually takes a day to completely drain a pond. Due to the power cuts, the job takes three days, and we have to spend more on rental pumps," she told The Daily Star.

PDB officials say during the week-long Eid holidays, power consumption was low because offices and factories were closed. As everything reopened and the sun began to beat down on the country from April 21, power consumption spiralled, leading to outages.

In the last four days, PDB generated over 15,500MW during evening peak hours. In the previous week, peak generation hovered around 13,000MW.

On April 22, despite the record generation of power, there was a shortage of 1,000MW at night, leading to the outages suffered mostly by the REB subscribers.

People in the rural areas bore the brunt as around 731MW of load was managed by cutting power to REB, according to data.

REB subscribers constitute more than 55 percent of the country's electricity users.

On that day, Mymensingh and its five adjacent districts received 1,100MW against a requirement of 1,500MW, according to the PDB data.

Yesterday, there was a shortage of around 1,500MW. REB got 1,000MW less than its demand, according to PDB data.

Khandaker Mokammel Hossain, a member of PDB, said the situation in the region is particularly bad as there are no major power plants in the area.

A gas-fired plant in Mymensingh's Shambhuganj has a capacity of 150MW, but it has been producing around 30-35MW in recent days due inadequate gas pressure, he said.

"The problem has been persisting for a long time. There are some other liquid fuel based power plants in the region, but those are not designed to run for an entire day," he added.

Residents of the regions that do not have regional power producers are facing major outages.

According to PDB data, a major power producer in Rangpur region is the 525MW Barapukuria power plant.

Only a 275MW unit is running mainly because of shortage of coal.

Abdul Halim, a farmer of Kaliganj upazila in Lalmonirhat, said he had not been able to irrigate his paddy fields for several days.

"The scorching heat is opening up cracks on my farmland. This is becoming an emergency situation for me," he added.

PDB's total power generation capacity and the near 3,000MW imported from India totals to around 26,000MW.

Currently, the power sector is getting around 1,300 million cubic feet of gas per day, which is the highest ever. The gas-fired power plants are producing up to 7,900MW while the coal-based plants are producing up to 3,500MW.

Furnace oil-based power plants generate around only 2,000MW as the fuel is comparatively expensive.

"We are short of liquid fuel. Besides, there are some technical problems with running these kinds of plants 24/7. But we are trying to keep the power supply stable," said Mokammel Hossain.​

 

[Saif]

865,000 illegal gas connections snapped in last 2 yrs: Nasrul

State Minister for Power, Energy and Mineral Resources Nasrul Hamid today said in the last two years, a total of 865,000 illegal gas connections have been snapped

www.thedailystar.net

865,000 illegal gas connections snapped in last 2 yrs: Nasrul

State Minister for Power and Energy Nasrul Hamid. File photo

State Minister for Power, Energy and Mineral Resources Nasrul Hamid today said in the last two years, a total of 865,000 illegal gas connections have been snapped.

Of these, 336 were industrial connections, 475 commercial connections, 97 captive power plants, and 13 CNG stations.

"A total of 989km of illegal pipelines have been removed and Tk604 crore has been fined from the illegal consumers", he while visiting the headquarters of the Titas Gas Transmission and Distribution Company Limited in the city today.

System loss in gas distribution segment has been brought down to 7.5 percent now from 22 percent two years ago.

"Now, our target is to bring the system loss to a zero-level in the next two years, " he said, giving a description of the recent moves of the Titas Gas Company.

Titas has been the largest entity in the gas distribution segment having about 2.8 million retail consumers, out of a total 4.8 million of the country.

Briefing reporters, Nasrul said the government has been intolerant in taking action against illegal connections.

He, however, admitted that some influential quarters including local lawmakers, public representatives of different levels have been the main impediments.

"But mind it, the minister of the energy and power ministry is the prime minister herself and she has strong directives to remain uncompromising in this regard, " he said.

Petrobangla Chairman Zanendra Nath Sarker and Titas Managing Director Engr Md Haronur Rashid Mullah were present on the occasion.

Nasrul sadi Titras Gas Company has initiated a move to implement a Tk 12,000 crore project in the areas under Dhaka and Narayanganj cities to replace the old pipelines to stop gas leakages.

Apart from this, Titas Gas has been negotiating with different donor agencies including Asian Development Bank, World Bank, and JBIC of Japan to install pre-paid gas meters to reduce system loss in gas consumption.

Petrobangla Chairman Zanendra Nath said all the distribution and transmission companies have installed meters to ensure accountability in gas trading among them.​

 

[Saif]

Nuclear, coal plants may limit gas-fired power gen in Bangladesh: Report

Bangladesh's new nuclear facilities, coal-fired plants and renewable energy may limit full-capacity utilisation of gas-fired power plants in the near term, according to a latest report. The latest Global LNG Outlook 2024-2028 from the Institute for Energy Economics and Financial Analysis (IE

thefinancialexpress.com.bd

Nuclear, coal plants may limit gas-fired power gen in Bangladesh: Report
SAJIBUR RAHMAN
Published :
Apr 26, 2024 00:25
Updated :
Apr 26, 2024 00:25

Bangladesh's new nuclear facilities, coal-fired plants and renewable energy may limit full-capacity utilisation of gas-fired power plants in the near term, according to a latest report.

The latest Global LNG Outlook 2024-2028 from the Institute for Energy Economics and Financial Analysis (IEEFA) also observed that Bangladesh might opt for gas-fired peaking plants instead of only base-load plants to accommodate more renewable energy.

The country may seek to limit the liquefied natural gas (LNG) demand growth by frontloading energy efficiency in industrial processes and captive generation, it stated.

The report presents the International Energy Economics Forecasting Association's (IEEFA) projection for worldwide LNG demand spanning from 2024 to 2028.

Despite plans to ramp up the country's LNG terminal capacity, fiscal challenges may limit a drastic LNG demand growth in the short-term, it said.

"Low spot market LNG prices resulted in a rebound in demand from Bangladesh by 17.9 per cent in 2023 after imports fell by 14.4 per cent in 2022, but sensitivity to volatile LNG prices, fiscal challenges, and competing energy resources in the power sector point to a moderate medium-term demand growth," Shafiqul Alam, Lead Analyst, Bangladesh Energy said.

Regarding the global LNG demand, lackluster demand growth combined with a massive wave of new export capacity is poised to send LNG markets into oversupply within two years.

The LNG demand in Japan, South Korea, and Europe-which together account for more than half of the world's LNG imports-is expected to fall through 2030.

In emerging Asia, LNG demand growth will face significant economic, political, financial, and logistical challenges that may not be fully resolved in an oversupplied market.

Global LNG supply capacity is set to reach 666.5 million metric tonnes per annum by the end of 2028-a 40 per cent increase in just five years-despite uncertain demand, the IEEFA report said.

However, such rapid LNG demand growth in emerging economies is not guaranteed, even in an oversupplied market. Countries in South and Southeast Asia, for example, will face distinct barriers to rising demand, including fiscal and credit challenges, extensive infrastructure delays, and contracting issues, among other obstacles.

The global LNG crisis following Russia's full-scale invasion of Ukraine in 2022 brought these issues to the fore, spurring many markets to reduce the role of LNG in their development plans and accelerate the development of alternative energy sources.

IEEFA expects Europe's gas and LNG demand to fall through 2030. Europe's natural gas demand has declined 20 per cent since 2021, due to fuel switching, increased nuclear and renewables generation, and energy efficiency measures.

The IEEFA also revealed that LNG imports to Japan and South Korea fell 8.0 per cent and 5.0 per cent respectively in 2023.

National energy and climate plans envision steep reductions in the role of LNG in both countries, turning instead to nuclear and renewable energy. Taiwan, on the other hand, aims to cut nuclear power, which may boost LNG demand.

China reclaimed its position as the world's largest LNG importer in 2023. However, domestic natural gas production and additional pipeline imports may limit LNG demand growth.

Unprecedented increases in renewables capacity are constraining the need for LNG in the power sector.

In South Asia, fiscal challenges along with the inherent volatility of LNG prices may constrain rapid near-term demand growth, and the role of LNG in power generation is likely to remain low.

In Southeast Asia, extensive development timelines, contract negotiations, and repeated project delays for LNG-related infrastructure may continue to inhibit demand while strengthening political incentives to pursue alternative energy sources.

Robust supply growth will likely lead to lower prices, encouraging an uptick in short-term buying, Sam Reynolds, Research Lead, LNG/Gas, Asia, said.

"Yet in South and Southeast Asia, ongoing fiscal challenges and lengthy delays for new gas and LNG infrastructure pose structural challenges to demand growth that a low-price environment does not fully resolve," Sam added.​

 

[Saif]

Improving summer power supply: Govt pays half the subsidy power ministry needs

The Finance Division last week disbursed Tk 1,500 crore in subsidy against the power ministry’s demand for the immediate release of Tk 3,000 crore to boost electricity supply during the summer months.

www.thedailystar.net

Improving summer power supply: Govt pays half the subsidy power ministry needs
Dollar crunch still bogging down furnace oil imports

Representational photo: Collected

The Finance Division last week disbursed Tk 1,500 crore in subsidy against the power ministry's demand for the immediate release of Tk 3,000 crore to boost electricity supply during the summer months.

The latest disbursement takes the amount of subsidy to Tk 18,799 crore so far this fiscal year. The government allocated a Tk 35,000 crore subsidy for the power sector for the current fiscal year to ensure uninterrupted electricity supply.

However, this move will not help the Bangladesh Power Development Board (PDB) improve the electricity supply significantly as the problem in opening letters of credit (LCs) to import furnace oil stemming from a shortage of dollars is another reason for the insufficient power supply.

The PDB is now enforcing 1,500 megawatts loadshedding a day. Many rural areas are experiencing daily eight to 10 hours of power outages, according to PDB officials.

Senior officials of the ministry and the PDB will hold a meeting today with the representatives of independent power producers (IPPs) to discuss ways to boost power production.

In a meeting with Finance Minister Abul Hassan Mahmood Ali in early April, State Minister for Power and Energy Nasrul Hamid and senior Power Division officials requested the finance minister to disburse Tk 3,000 crore from the Finance Division. The finance minister agreed to release about Tk 1,500 crore as cash support.

Finance ministry officials said they will release more funds next month.

PDB has been enforcing loadshedding, particularly in rural areas, since the end of the Eid holidays due to an increased demand amid the ongoing heatwave across the country.

As of 9:00pm yesterday, PDB produced 15,527MW of electricity against the demand of 16,650MW. Of the produced power, 7,400MW came from gas-based power plants, about 4,100MW from coal-fired plants and about 3,100MW from furnace-oil based plants.

Though the country's liquid fuel-based power plants have a combined capacity of around 6,000MW, the PDB cannot produce more than 3,500MW due to a shortage of fuel.

On April 22, the PDB produced an all-time record 16,233 MW. However, the figure dropped later.

"We don't have enough liquid fuel. Besides, the liquid fuel-based power plants are not designed to run round-the-clock. That's why we need to enforce loadshedding in parts of the country," said Mokammel Hossain, a member of PDB.

State Minister Nasrul Hamid will sit for a meeting today with the representatives of the Bangladesh Independent Power Producers Association (BIPPA).

Faisal Karim Khan, president of BIPPA, yesterday told The Daily Star that they would discuss how to enable IPPs to procure more furnace oil to boost power generation in future.

"The independent power producers cannot procure enough furnace oil due to the banks' inability to open enough LCs because of shortage of dollars. The IPPs have nothing to do with this problem. So, we are seeking help from our regulator [Power Division] and the customer [PDB]," he said.

Asked about the collection of arrear bills from the PDB, he said different IPPs have received different amounts against arrear bills. "The PDB was supposed to clear all the arrear bills until December last year."

This fiscal year, the government issued bonds worth Tk 10,599 crore to IPPs, according to Power Division data.

The power ministry officials earlier this month said about $2 billion is needed in the current fiscal year to clear the dues of all the companies concerned and also for their working capital to supply uninterrupted electricity. Half of this $2 billion would be spent on clearing dues of India's Adani Power and US energy giant Chevron, which is producing gas from Bibiyana, a major gas field in Bangladesh.

The rest of the amount will be used to pay the bills of purchasing liquid fuel, liquefied natural gas and coal for power generation.​

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

Titas Gas losses heighten in Q3
FE REPORT
Published :
May 01, 2024 08:37
Updated :
May 01, 2024 08:37

State-owned Titas Gas Transmission and Distribution Company reported a 125 per cent year-on-year increase in losses in the third quarter through March of FY24.

It failed to return to profit even after the Bangladesh Energy Regulatory Commission (BERC) had hiked commission to Tk 0.21 from Tk 0.13 per cubic metre.

Titas Gas endured a loss of Tk 1.65 billion for the first time in FY23 after the government narrowed its profit margin.

At the time, it claimed that operating cost had surpassed income in FY23 for the decline in commission to Tk 0.13 from Tk 0.25 per cubic metre and that it would show a better business performance if the government increased the commission to Tk 0.21 per cubic metre.

"But the situation has not improved yet. We are still unable to cover our costs even after the regulator increased the commission," said General Manager (Finance) of Titas Aparna Islam.

Titas Gas has declared earnings per share of Tk 2.14 in the negative for the third quarter of FY24, which was Tk 1.19 in the negative for the same quarter of the year before.

In the first nine months through March of FY24, the company has shown a loss of Tk 1.67 per share.

The gas distribution margin of Tk 0.25 per cubic metre was "significantly high", said Mr Alam, who is serving as senior vice-president of the Consumers Association of Bangladesh.

"I believe the commission of Tk 0.13 was also high. Titas has already begun charging [prepaid] consumers meter rent. Now, the government has increased it [commission] to Tk 0.21, which is unexpected."

The company, which enjoys a monopoly on pipeline gas distribution in Dhaka and Mymensingh, earned a profit of Tk 3.18 billion in FY22.

It had secured good profits in the years until FY23 since its establishment in 1964.

Meanwhile, the stock went down 3 per cent to Tk 22.90 per share on Tuesday.

Titas Gas was listed on the Dhaka and Chattogram bourses in 2008 under direct listing through offloading of 25 per cent shares in the stock market. Currently, Petrobangla holds 75 per cent of the company's shares.​

 

[Saif]

Power price to go up four times a year

The government has drawn up a plan to increase the price of electricity four times a year for the next three years to withdraw all subsidies in the power sector, which the IMF recommends.

www.thedailystar.net

Power price to go up four times a year
Govt moves to withdraw subsidies in 3 years following IMF advice

Visual: Star

The government has drawn up a plan to increase the price of electricity four times a year for the next three years to withdraw all subsidies in the power sector, which the IMF recommends.

The plan was placed before a meeting between the visiting International Monetary Fund (IMF) mission and officials of the power and energy division yesterday.

The power price would be hiked in small amounts so that the consumers do not get a shock, power division officials told The Daily Star, adding that subsidy on gas would also be withdrawn gradually.

According to the officials, the IMF mission, led by Chris Papageorgiou, wanted to know the outstanding bills of the Independent Power Plants and how much had they been paid in bonds.

Meanwhile, the Consumers Association of Bangladesh (CAB) yesterday alleged that the government was hiking power and fuel prices to protect the interests of dishonest businesspeople.

It said the sector would not need subsidies had the government stopped irregularities and corruption.

CAB made13 recommendations, including a ban on non-competitive investments, so that the government does not have to raise the price.

The IMF mission arrived in Dhaka on April 23 for its second review of the $4.7 billion loan programme. The third tranche of the loan would be released following the review.

During meetings with finance ministry officials earlier, the IMF team asked the government to gradually reduce subsidies for power, gas, and fertiliser.

After entering into the IMF's $4.7 billion loan programme in January last year, the government hiked the prices of electricity and gas several times.

After 2022-23 fiscal year, the government subsidies for electricity, gas and fertiliser nearly doubled.

In the current fiscal year, the subsidy allocation is Tk 84,542 crore and the figure could be about the same in next year's budget.

The subsidy for power is around Tk 35,000 crore and around Tk 6,500 crore for gas this fiscal year.

The finance division this fiscal year paid the power division around Tk 19,000 in bonds and cash but unpaid bills amount to around Tk 60,000 as of last January, officials said.

A power division high officials said despite the hikes in electricity prices, Tk 7 to Tk 8 has to be subsidised for every unit of power produced.

"This is the main reason for the piling up of unpaid bills," the official said, adding that this time the IMF mission wanted to know the plan for reducing the arrears and subsidy burden.

The official said the government would withdraw the subsidies for the power and energy sector as it had done for petroleum fuels.

The IMF mission also wanted to know whether the Rooppur Nuclear Power Plant would require any subsidy.

"We told them that the per unit generation cost for the Rooppur plant would be low and would not need any subsidy," the official said.

Power division officials said the first unit of the 2,400-megawatt Rooppur plant would start production next March.

The IMF has been insisting on reducing the subsidy for the power and energy sector and diverting the money saved to the social safety net programmes.

The IMF mission will end its tour with joint meetings with finance division and Bangladesh Bank officials on May 6 and 7, according to finance division officials.​