Energy and power supply must be ensured

Conspiracies, both domestic and foreign, surrounding oil and gas are nothing new. Past controversies over the Haripur, Shalibahan and Chimmutong oil and gas fields were allegedly driven by such conspiracies, which have taken different forms over the years. Many now believe that domestic and foreign interests may also be behind the recent gas crisis.

The mysterious fire at a floating LNG terminal, the delay in restoring the terminal, and the recent refusal to accept an LNG carrier on the grounds that it was old and risky may appear planned and deliberate. Of the two floating LNG terminals in Maheshkhali, Cox’s Bazar, one belongs to US company Excelerate Energy and the other to local company Summit Group. Both are operated by Excelerate. LNG is imported by state-owned Petrobangla, which procures it through long-term contracts and the international spot market. Excelerate converts the imported LNG into gas and supplies it to the pipeline network.

Daily gas demand in Bangladesh is now around 3.8 billion cubic feet, but the national grid normally receives only about 2.7 billion cubic feet. Around 1 billion cubic feet comes from imported LNG. The country already faces a gas shortage, so the closure of one of the two LNG terminals created a severe crisis.

The affected terminal remained closed for 17 days, causing widespread suffering. Many households could not cook because of inadequate gas supplies. Industrial supplies fell, disrupting production and forcing some factories to shut down, leaving workers unemployed. Even after the terminal reopened, supplies were disrupted because of bad weather. A positive development is that a 66,000-tonne LNG carrier imported from the United States has been connected to the Summit terminal. Increased supply has improved the gas situation to some extent.

A thorough investigation is needed into the LNG terminal fire and the events that followed. It should establish whether the problems were simply accidents or whether there were other motives behind them. Some believe there may have been an attempt to put the new government in a difficult position from the outset. India and the United States are also putting pressure on the government in various ways, as indicated by the activities of officials and ambassadors from the two countries.

Energy like Oil and gas and power supply are essential for a country’s production and daily life. Therefore, ensuring energy security must receive the highest priority. Many recent wars and conflicts have involved energy-related factors, and the ongoing Iran war is no exception. Bangladesh imports a significant share of its oil and gas and has suffered from disruptions to global energy supplies and rising prices caused by the conflict. Fuel and electricity prices have increased, affecting living standards, production and commodity prices.

The need to ensure energy security has therefore become more urgent. Unfortunately, the previous fascist government failed to take adequate steps in this regard. It did not conduct sufficient oil and gas exploration or ensure adequate electricity generation. Instead, it made the energy sector increasingly dependent on imports and turned it into a field for corruption and plunder.

State-owned BAPEX has achieved considerable success in oil and gas exploration, yet it was kept weak. It was not given enough work, manpower, equipment or funds. Effective offshore exploration initiatives were also not taken. While India and Myanmar have discovered oil and gas in their maritime areas, Bangladesh has failed to even hold an international tender for offshore exploration over the years. Such neglect of national resources and potential cannot be accepted. A nationalist government would not have treated the country’s energy resources this way.

Investment is essential for development, industrialisation, business expansion and employment. To attract investment, Bangladesh must ensure reliable fuel and electricity supplies, a favourable investment climate and law and order. The government must therefore focus on domestic oil and gas exploration and extraction. BAPEX should be fully equipped and made highly efficient so that it can explore resources both onshore and offshore.

Electricity generation capacity must also increase in reality, not merely on paper. Bangladesh’s coal-fired power plants largely depend on imported coal despite the country’s substantial domestic reserves. Most coal mines remain unused and should be brought into operation to increase coal-based power generation.

At the same time, the Rooppur Nuclear Power Plant should be brought into operation as soon as possible, while wind and solar power generation should receive greater priority. Ensuring energy and electricity security will help accelerate investment and economic growth. The government must adopt appropriate plans and initiatives because without reliable energy and electricity supplies, special economic zones, industrial parks and other investment projects will achieve little.