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🇧🇩 Energy Security of Bangladesh (3 Viewers)

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🇧🇩 Energy Security of Bangladesh (3 Viewers)

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Saif

Senior Member
Jan 24, 2024
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Industries reeling from persistent gas crisis
Published :
Jul 08, 2024 22:07
Updated :
Jul 08, 2024 22:07
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The country that was once thought to be floating on gas is unable to make available sufficient volume of this fossil fuel to domestic consumers of various categories. The industrial consumers are worst-hit. The textile mills that need a large volume of gas in recent days have aired their grievances on a number of occasions through their associations. The domestic consumers don't have a voice for they are not organised under the umbrella of any such entity. The last fiscal year was a disappointing one for the industrial sector, as it recorded only 6.66 per cent growth, the lowest in last four years. The rate of growth was 8.37 per cent in the preceding year. Non-availability of sufficient volume of gas was one of the main reasons for such a poor performance. The gas crisis is still hurting the industries and the situation is unlikely to change for the better anytime soon. Quite a big number of factories in the key industrial belts like Narayanganj, Savar and Gazipur are dependent on gas for their operations. The gas crisis has been pushing up their cost of production, making it more challenging for manufacturers and exporters to ensure the supply of products in time. Industry leaders have already expressed their concern and written to the relevant ministries seeking an early resumption of gas supply to run their factories at an optimal capacity.

The main reason behind the gas crunch is the flawed energy policy that the government has been pursuing over the years, demonstrating an inexcusable indifference to experts' suggestion to go for extensive domestic exploration for hydrocarbon. The government has been more interested in importing LNG since 2015 to produce power and feed domestic industries partially than putting in its best efforts for offshore exploration. The cost of LNG import, however, has increased sharply since 2022 as the global energy market became volatile amidst geo-political tensions like the Russia-Ukraine war and the Middle-East conflicts. At home, foreign exchange reserves started depleting at a fast pace for both external and domestic reasons. The local currency also depreciated sharply, making the payments for the import of LNG in US dollar expensive. The crisis of greenback coupled with dwindling value of Taka forced the government to slow down the import of LNG. The net outcome has been a cut in the supply of gas to industry and power units. The government after a prolonged foot-dragging announced new oil and gas exploration move early this year. The results of the exploration work could go either way --- positive or negative. But the country would surely need uninterrupted supply of gas to help the wheels of industrial units running. And the government will have to ensure it, by any means.

The immediate reason behind the current crisis is the damage caused to one of the two floating terminals at Maheshkhali in Cox's Bazar used for regasification of imported LNG. Cyclone Remal caused damage to a terminal on May 27, which was then sent to Singapore for repair. The Petrobangla authority is hopeful of terminal's return by the middle of this month, which it feels, will resolve the gas crunch problem. This particular development also underscores the risks and limitations of over-reliance on energy imports instead of exploring multiple options efficiently. It is expected that the authorities will revisit the energy policy and redesign it keeping in view the long-term needs of the country. The gas crisis is not only affecting the country's export market but it is also significantly pushing up the cost of living of the common consumers.​
 

Saif

Senior Member
Jan 24, 2024
3,469
1,319




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
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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

Senior Member
Jan 24, 2024
3,469
1,319




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

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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

Senior Member
Jan 24, 2024
3,469
1,319




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

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