Jul 14, 2024
| Shanchita Shitu | The Dhaka Tribune
Despite repairs to the LNG supply pipeline, the gas crisis remains unresolved. Even though gas is being supplied from the US-based company Excelerate's LNG terminal, there is still a significant gap between demand and supply. This has made it difficult to manage the gas shortage. Petrobangla has stated that the damaged LNG terminal of Summit, after being repaired in Singapore, has arrived in Maheshkhali. However, it may take around 15 more days to get gas from this terminal, according to relevant sources. It is hoped that the crisis will be alleviated then.
Consumers are not receiving a normal supply of gas for electricity production, industrial factories, commercial, and residential purposes. The gas crisis is worsening everywhere. According to Petrobangla's calculations, the country currently has a daily demand of 4,000 million cubic feet of gas, but only 2,496 million cubic feet is being supplied. This results in a daily shortfall of 1,504 million cubic feet. Government sources indicate that it is not possible to cope with this massive shortfall. Production in all the gas companies in the country has been declining consistently over the past few years. In consequence, the government has been trying to meet demand through LNG imports.
Public life disrupted
Due to the gas shortage, long queues are seen outside CNG stations in the capital. Industrial production is being disrupted. Homemakers are facing difficulties due to low gas pressure affecting household work.
In most areas of Dhaka, gas is unavailable after 9am and supply of it is only restored in the evening or at night. Despite a daily demand of 2,300 million cubic feet of gas for electricity production, only 970 million cubic feet are being supplied.
This has limited the production of major gas-powered power plants. Reports of gas shortages have been coming from various areas of Dhaka.
Additionally, load shedding is occurring in some areas due to reduced gas-based electricity production. Although the impact of load shedding is not significant in urban areas, there are reports of severe power outages in the rural regions.
Major issues
A number of officials, wishing to remain anonymous, said that the government has faced two major problems with gas recently. First, the private Summit Company's floating LNG terminal in Maheshkhali was severely damaged and disabled by the recent Cyclone Remal. It was taken to Singapore for repairs. Secondly, due to dollar and financial crises, LNG imports have not been steady, prolonging the gas shortage in the country.
Based on natural gas extraction data from the country's mines, Bangladesh Gas Field Company has an extraction capacity of 815 million cubic feet. In reality, only 555 million cubic feet are being extracted. Sylhet Gas Field Company has a capacity of 149 million cubic feet but is extracting 116 million cubic feet, and Bapex is extracting 116 million cubic feet out of a capacity of 130 million cubic feet.
Among multinational companies, Chevron's extraction has decreased significantly. Petrobangla has been in trouble due to the reduction in Chevron's production from 1,512 million cubic feet to 1,170 million cubic feet.
The largest gas-producing field, Bibiyana, used to supply 1,200 million cubic feet of gas daily, but now the supply has been reduced to 997 million cubic feet. This significant drop in production has not been compensated by increased production from other gas fields. Relevant data suggest that although 800 to 850 million cubic feet of gas were supposed to be supplied to the national grid daily through LNG terminals, currently only 500 million cubic feet are being supplied. Due to the damaged Summit LNG terminal, the daily supply has decreased by 350 million cubic feet, as initially reported by Petrobangla.
What authorities say
On July 4, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid said at a press conference that the ongoing gas crisis would be resolved by mid-July. He mentioned that the Summit terminal would arrive in the country on July 15 or 16, and once gas supply resumes, the crisis will subside. When asked about the situation, Petrobangla's Director (Operations) Md Kamruzzaman said: "The Anwara-Faujdarhat pipeline for LNG supply was damaged. Commissioning for repairs was completed on Friday. Additionally, Summit's LNG terminal is now in Maheshkhali.”
Regarding gas supply, he said that while they were previously providing 3,100 million cubic feet, they are now supplying 2,600 million cubic feet of gas. “Once the Summit LNG terminal is operational, an additional 500 million cubic feet of gas will be available, which will help reduce the gas shortage," Kamruzzaman added.
News Link: No respite from gas crisis despite pipeline repairs