🇧🇩 Energy Security of Bangladesh (1 Viewer)

[Saif]

Gas crunch leaves BD in frequent power cuts

A nationwide gas shortage is causing frequent power cuts as around three dozen gas-fired power plants are currently out of operation for a lack of input. Power outages are worst in rural areas, while urban areas are experiencing increased load shedding. Officials say the situation is unlikely to

thefinancialexpress.com.bd

Gas crunch leaves BD in frequent power cuts
Situation unlikely to improve until mid-July
Published :
Jul 09, 2024 10:22
Updated :
Jul 09, 2024 10:22

A nationwide gas shortage is causing frequent power cuts as around three dozen gas-fired power plants are currently out of operation for a lack of input.

Power outages are worst in rural areas, while urban areas are experiencing increased load shedding.

Officials say the situation is unlikely to improve until July 15, when the Summit Group's liquefied natural gas (LNG) terminal is expected to resume operations.

A 500 million cubic feet per day (mmcfd) shortfall in gas supply to the national grid has resulted from the shutdown of Summit's floating storage and regasification unit (FSRU).

This gas shortage has forced nearly all major gas-fired power plants to shut down, including the recently commissioned and efficient Unique Meghnaghat 584 megawatt and Summit Meghnaghat 583 megawatt electricity plants.

Cyclone Remal, which struck the southern parts of the country in late May, damaged Summit's FSRU. After the cyclone, authorities discovered the damage on May 29 and reduced LNG regasification to zero by the morning of May 30.

Due to the reduced LNG re-gasification capacity -- down to around 600 mmcfd from 1,100 mmcfd before the cyclone damage, state-run Petrobangla was forced to cancel four spot LNG cargoes scheduled for June deliveries.

The country's overall natural gas output dipped to around 2,600 mmcfd, including around 606 mmcfd of re-gasified LNG, on July 7. This is down from around 3,100 mmcfd before Cyclone Remal, according to Petrobangla data.

To cope with the power shortfall, state-run electricity marketing and distribution companies have been enforcing load shedding for periods ranging from one to several hours, according to a senior official at the Bangladesh Power Development Board (BPDB).

The overall electricity generation on July 7 was around 12,608 MW during peak day hours and 14,521 MW during peak evening hours against the total generation capacity of 26,815 MW, according to BPDB data.

The senior BPDB official acknowledged that rural areas are currently experiencing the worst of the power outages.

The gas crisis is having a wider impact, jeopardising industrial output, slowing down the filling of compressed natural gas (CNG) vehicles and causing increased hardship for household consumers.

Household consumers in Dhaka and surrounding areas allege that gas pressure drops in the morning and remains low throughout the day until evening. This limited gas pressure forces them to restrict their cooking to nighttime hours.​

 

[Saif]

Load-shedding rises as gas supply declines

a pipeline was leaked in an accident Tuesday night further lessening the supply of LNG

en.prothomalo.com

Load-shedding rises as gas supply declines
Staff CorrespondentDhaka
Published: 11 Jul 2024, 11: 14

A man working in candlelight during load-shedding in Siddik Bazar area of DhakaProthom Alo file photo

The supply of liquefied natural gas has been low for over one and a half months due to the closure of one of the two terminals. Amid this, a pipeline leaked in an accident Tuesday night further lessening the supply of LNG.

Meanwhile, the industries, domestic and power sector is suffering due to the gas crisis. Power generation has stopped in several power plants resulting in a rise of load-shedding across the country on Wednesday.

The daily demand of gas in the country now stands at 3.8 billion cubic feet. However, only 3 billion cubic feet of gas is provided to tackle the pressure. The two floating terminals in Cox's Bazar's Maheshkhali provide 1.1 billion cubic feet of LNG daily, which dwindled to only 250 million cubic feet. The daily supply has dwindled to some 2.25 billion cubic feet as a result of this.

Petrobangla sources say the terminal operated by the Summit Group was closed down due to the damages it sustained during cyclone Remal on 27 May. The overall daily supply of LNG declined by 500 million cubic feet after the incident.

The terminal is likely to resume operations by the middle of this month. Meanwhile, the Anwara-Fouzdarhat pipeline was leaked by the workers of a contracting agency while digging up the soil for examination in the Anwara area of Chattogram. It stopped LNG supply through pipelines. The engineers of the Gas Transmission and Distribution Company Limited (GTCL) are trying to repair it.

Petrobangla director (operations and mines) Md Kamruzzaman Khan told Prothom Alo, "Gas supply has declined due to a flaw in the pipeline. Although we are not sure, it could take two to three days to repair the pipeline."

Meanwhile, the residents of Dhaka and other cities of the country are suffering due to the gas crisis. Already there was a decline in production at several industries due to the gas crisis. Now it has become even more difficult to run the factories. A total of 6,000 MW power was being generated using gas, which dwindled to below 4000 MW yesterday. As a result, the people outside Dhaka had to suffer a few hours of load shedding.

Sources in the Power Division, PDB and PGCB say the country has a power generation capacity of 26,000 MW daily. The maximum demand of power at 3:00 pm Wednesday was 14,300 MW. However, a little more than 12,000 MW was generated.

As a result, the authorities have to enforce more than 2000 MW of power outages. Load shedding has become more frequent from Tuesday night. It became more frequent after 12:00 pm yesterday.

PDB member (generation) Khandaker Mokammel Hossain told Prothom Alo, "There is no lack from PDB's end. Several power plants had to be closed down due to technical complications. The deficit due to this is being compensated through load-shedding. However, power generation has been the highest from oil-fired power plants."​

 

[Saif]

Normalcy expected as gas supply resumes after pipeline fixed

The authorities repaired a damaged gas- transmission pipeline 62 hours after an accident and resumed the flow of re-gasified liquefied natural gas (LNG) through it on Friday morning. Md Rafiqul Islam, managing director of state-owned Rupantarita Prakritik Gas Company Limited (RPGCL), which handl

thefinancialexpress.com.bd

Normalcy expected as gas supply resumes after pipeline fixed
M AZIZUR RAHMAN
Published :
Jul 13, 2024 00:10
Updated :
Jul 13, 2024 00:10

The authorities repaired a damaged gas- transmission pipeline 62 hours after an accident and resumed the flow of re-gasified liquefied natural gas (LNG) through it on Friday morning.

Md Rafiqul Islam, managing director of state-owned Rupantarita Prakritik Gas Company Limited (RPGCL), which handles LNG trading in Bangladesh, confirmed the development to The Financial Express on Friday.

"We have carried out repair works around the clock despite adverse weather conditions to restore the damaged Anwara-Fouzderhat pipeline in Chattogram," he said.

The 30km, 42-inch Anwara-Fouzderhat pipeline, which had been offline since an accident on the afternoon of 9 July, resumed supplying re-gasified LNG at around 7:20 on Friday after repairs, he said.

By 10:30 on Friday, the pipeline was carrying about 150 million cubic feet per day (mmcfd) of re-gasified LNG -- bringing the country's total supply to about 400 mmcfd, Mr Islam said.

Another pipeline, the 91km, 30-inch Moheshkhali-Anwara line, which remained operational after the accident, was carrying about 250 mmcfd on Friday morning, he added.

The RPGCL managing director hoped the country's overall re-gasified LNG supply would reach the full capacity of its current infrastructure to 600 mmcfd by Friday evening.

RPGCL, a wholly-owned subsidiary of state-owned Petrobangla, looks after the LNG trading in Bangladesh.

Shafiuddin M Farhad Omar, deputy general manager of state-owned Gas Transmission Company Limited (GTCL), said a 3.0-metre section of the damaged pipeline had been replaced with a fresh patch and welded to restore gas supplies.

Mr Omar, who oversees GTCL's operations in Chattogram region, could not specify the repair cost but said Petrobangla's senior management would settle all relevant issues, including compensation, after discussions with the Chinese company involved in the pipeline accident.

He said the pipeline was damaged when struck by a soil testing rig operated by First Harbor Consultant Ltd in the Majherchar area on the bank of Karnaphuli river in southern Bangladesh.

The rig was deployed by China Road Bridge Construction Ltd to conduct soil testing for a jetty on Karnaphuli river, which would be used for a China Economic Zone, Mr Omar said.

Punctures were identified in the Anwara-Fouzderhat pipeline on the afternoon of 9 July, subsequently affecting LNG re-gasification from the operational floating, storage and regasification unit on Moheshkhali island, he said.

GTCL, a subsidiary of Petrobangla, builds, owns, operates and maintains the national gas grid and gas transmission pipelines.

The country's gas-guzzling consumers got a sigh of relief with the resumption of operation of the damaged gas transmission pipeline. Overall power supply improved and gas supply to consumers increased from Friday morning, sources said.

However, consumers will be able to get increased volumes of re-gasified LNG once the Summit LNG Terminal comes online next week. The Summit's 500 mmcfd capacity FSRU arrived at the Moheshkhali mooring facility on Thursday night and is preparing to start operations next week.

In an official statement on 12 July, the Ministry of Power, Energy and Mineral Resources also confirmed that the damaged pipeline was restored at 07:20 on Friday morning.

Acknowledging the inconvenience to consumers, State Minister for Power, Energy and Mineral Resources Nasrul Hamid has ordered authorities to map gas transmission pipeline routes before any physical or infrastructure work nearby.

Such accidents could be avoided with pipeline mapping, Mr Hamid said in a statement, issued by Deputy Chief Information Officer of the ministry Mir Mohammad Aslam Uddin.​

 

[Saif]

New 42MW wind plant at Matarbari soon

Another wind-power plant is being established at Matarbari coast while several others are in the process for advancing Bangladesh's green-energy goal by utilising huge air-to-electricity potential the country holds. A search for foreign funds for setting up the 42-megawatt-capacity plant has bee

thefinancialexpress.com.bd

New 42MW wind plant at Matarbari soon
FHM HUMAYAN KABIR
Published :
Jul 16, 2024 00:50
Updated :
Jul 16, 2024 00:50

Another wind-power plant is being established at Matarbari coast while several others are in the process for advancing Bangladesh's green-energy goal by utilising huge air-to-electricity potential the country holds.

A search for foreign funds for setting up the 42-megawatt-capacity plant has been launched, officials said Monday.

This planned one will be the second-biggest wind-power station after the recently launched 60MW wind-based plant at the coast of the Bay of Bengal in Cox's Bazar, they said.

Coal Power Generation Company Bangladesh Limited (CPGCBL) has decided to build the power station and sent a preliminary development project proposal (PDPP) to the Planning Commission (PC) for approval, a senior Power Division official said.

The 42MW plant is planned to be set up beside the 1200MW coal-fired power station at Matarbari hub on the Maheshkhali Island, he said.

The state-run CPGCBL is now searching foreign loans for installing the power station estimated to cost of Tk 1.21 billion, the official added.

Meanwhile, with the financial support of a Chinese company-SPIC Wuiling Power Corporation-US-DK Green Energy BD Ltd, a private company, set up the first biggest commercially operated 60MW wind-power plant in Cox's Bazar which started full-scale operation in March last, supplying power into the national grid.

The firm is selling the electricity generated from the plant to Bangladesh government at 12 US cents per unit (1 kWh) under an 18-year management contract.

A total of 22 wind turbines in Khurushkul, PM Khali, Chowfaldandi, and Pokkhali unions of Cox's Bazar near the seashore have already been generating the electricity.

A report of energytrackerasia, a global renewable-energy advocacy group, says the 724-km- long coast of Bangladesh is suitable for wind-power generation as there is "significant wind- power-generation potential. Bangladesh has vast potential to exploit this renewable energy source, which still remains untapped".

Each of the 22 turbines of the existing plant has a capacity of 3.0MW power, altogether generating 60 megawatts of electricity from wind blowing along the bay coast free of cost.

Meanwhile, Bangladesh's first wind-power project was a 0.9MW plant near the dam along the River Muhuri in Feni, constructed by Bangladesh Power Development Board (BPDB) in 2005. Three years later, a 1.0MW wind plant was set up in Kutubdia, Cox's Bazar.

"Both plants are now out of operation for a lack of supervision and interest from the board," said one source.

The government has set a target to generate 10 per cent of electricity requirements from renewable energy by 2025.

Asked about the latest venture, a senior PC official said they had got the PDPP from CPGCBL that has sought approval for the 42MW wind-power project.

"The proposed cost of the project is comparatively higher. We have asked the company to rationalize the cost estimation and then send it again to the PC. Then we will consider approval," said a senior official.

Meanwhile, the government has also planned to construct three more wind projects with a cumulative power-generation capacity of 102 megawatts in Sirajganj, Bagerhat and Chuadanga.

Besides, contractor selection for a 50MW wind-power project in Chandpur and a 30MW plant in Feni is in the process.

In September 2022, the BPDB signed a contract with Mongla Green Power Limited firm for building a 55MW wind plant in Mongla, Bagerhat, where Bangladesh's second-largest seaport is situated.

Official data show Bangladesh's total power-generation capacity is around 22,000 MWs. Around 51 per cent of the capacity is natural gas-fired, while 27 per cent is from furnace oil, 6.0 per cent from gasoil or diesel and only 2.0 per cent from hydropower and solar, with another 5.0 per cent imported from India. The share of wind energy is almost zero.​

 

[Saif]

Gas short supply hurting industries

Poor gas supply and frequent electricity cuts have been taking a heavy toll on the country's industrial production, thus leading to rise in the cost of doing business, affecting productivity and eroding competitive edge, industry people said. Textile and garment industry's growth, according to ins

thefinancialexpress.com.bd

Gas short supply hurting industries
MONIRA MUNNI
Published :
Jul 16, 2024 00:47
Updated :
Jul 16, 2024 00:47

Poor gas supply and frequent electricity cuts have been taking a heavy toll on the country's industrial production, thus leading to rise in the cost of doing business, affecting productivity and eroding competitive edge, industry people said.
Textile and garment industry's growth, according to insiders, which is important for macroeconomic stability and sound financial sector, needs government's priority attention to resolve the energy crisis.

Textile millers said up to 50 per cent of their production capacity remained unused due to gas supply shortage, forcing many garment exporters to source raw materials from outside the country.

Frequent load shedding is also causing damage to expensive and sophisticated machinery and electrical equipment.

The whole supply chain of textile and garment exports from spinning to weaving - dying -- printing have been affected.

"We are passing a challenging time. The overall supply chain has been disrupted due to energy crisis," Shams Mahmud managing director of Shasha Denims said.

Spinning mills can't produce in full capacity while price hike has raised the cost. And these factors are forcing exporters to go for imported raw materials like yarn and fabric which are cheaper than the local ones.

Besides, electricity cut or gas supply disruption is also cause damage to goods amidst production process, he said.

Explaining the situation, he said an average-sized textile mill has to pay about Tk 40 million a month following the price hike of gas. The amount was Tk 20 million before the hike.

"I need to pay additional Tk 240 million annually for all energy costs. And it is ultimately affecting cash flow," he noted.

There is liquidity crisis in banks while interest rate has gone up, he said adding that as a result working capital has become costly for private sector.

Even high-performing factories are now facing financial crunch. This will also have a massive impact on financial sector, giving rise to macroeconomic instability, he noted.

Buyers are also shifting to Pakistan, Vietnam, India and Turkey due to long leadtime, rise in cost of production, Mr Mahmud said.

"Industry is suffering and we are losing competitive edges," Mr Mahmud, who is also a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said.

Talking to the FE on Monday, Khorshed Alam chairman of standing committee on local spinning, weaving, dying and printing mills listed with Bangladesh Textile Mills Association (BTMA) said they held a meeting on 13 July with all members.

Almost all mills located at industrial areas, including Narsingdi, Madhabdi, Baburhat, Pabna and Sirajganj, are not getting electricity for eight to nine hours a day.

And factories mostly spinning, dying and printing are in dire situation because of energy crisis.

"Sudden electricity cut cause damage of 40-60 per cent of the yarn producing from cotton that are in the process ," he said, explaining that weaving mills suspended production and exporters are not buying fabrics from them.

Textile Mills require uninterrupted energy supply to run operation as they operate 24 hours, he said adding the mills need more than two hours to restart.

Similarly printing and dying segments are also facing severe problems due to gas and electricity problems, Mr Alam, who is also chairman of Little Star Spinning Mills Ltd, said.

When asked, BTMA president Mohammad Ali Khokon said government increased gas price with assurance that industry would get uninterrupted gas supply.

"But we are not getting uninterrupted gas. Rather the situation has worsened further," he said adding that power outage for at least 10 to 11 occasions causes 40-50 per cent production fall and rise in cost.

"What buyers are now doing is that they are sourcing goods from other countries," he added.

It takes three years to be nominated by buyers, he said expressing his deep frustration.

The leaders suggested a long-term government policy to help industry to plan better

Like textile and garment, other industries like ceramic and plastic are also suffering.

Talking to the FE, Irfan Uddin general secretary of Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) said ceramic making is largely dependent on gas-fired kilns.

They are also suffering severely not only crisis of gas but the hike in gas prices as they are not uninterrupted gas supply despite significant rise in prices.

The government increased the gas price per cubic meter to Tk 30 from Tk 13.

"At the end of the day, we are paying for air, not gas" he noted

About 25 factories in Dhaka, Gazipur and Narsingdi have been suffering a production loss of estimated Tk 200 million every day for around the last one month due to the supply crunch of natural gas, the BCMEA on June 26 said in a letter to energy state minister.

Ceramic goods-manufacturing units require gas supply pressure at 15 psi (pounds per square inch), whereas the pressure in those areas fluctuate between three and zero only, it noted.

Ceramic is a gas dependent manufacturing industry and natural gas constitutes 10 to 12 per cent of its total production cost, the association said explaining that kilns in the ceramic industry need 24-hour uninterrupted gas supply to burn the products at 1200 centigrade at the desired PSI.

"Whenever the required pressure of gas goes down, the half-done products inside a kiln become wastage, even a kiln needs 48 to 72 hours to resume production in full swing after a halt," the BCMEA said, adding that sometimes an industry owner has to encounter severe trouble due to inoperative machinery.

According to Mr Uddin, there are around 70 ceramic factories across the country while 20-25 are engaged in exports.

Shamim Ahmed president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BGAPMEA) also echoed the same adding that many factories located in Ashulia, Gazipur and Narayanganj could not operate properly for 20 days a month for gas crisis.​