Major initiatives await PM’s return from US
- Bangladesh next destination for foreign investment,
- Energy and power supply rising, relief returns to public life and industry
- Massive activity plan once PM returns from US
Hasan Sohel
The country’s power generation capacity is nearly double the demand, yet people continue to suffer from severe load-shedding nationwide. Even though the global crisis and the US-Iran war situation have not normalized, on the instructions of Prime Minister Mr. Tarique Rahman, the country’s energy situation is set to return to normalcy. Yesterday, a liquefied natural gas (LNG) carrier with a capacity of 175,000 cubic feet docked at the floating terminal in Maheshkhali. LNG supply has begun from that cargo to the terminal of US company Excelerate Energy, which will increase gas supply and largely ease the ongoing gas crisis. Earlier, on Wednesday, another LNG carrier had also docked at Maheshkhali, Cox’s Bazar. The two ships have a combined supply capacity of 1,050 to 1,100 million cubic feet. Due to gas shortages, several power plants across the country, including four in Chattogram, remain shut, which had been widening the electricity deficit. Power officials expect this crisis to ease once gas supply normalizes and pipeline-linked power generation resumes. With the arrival of the two new ships, those concerned believe gas supply will return to full normalcy.
According to a Petrobangla report, the daily demand of grid-connected gas-fired power plants currently exceeds 2,500 million cubic feet, against which just over 850 million cubic feet is being supplied — 34.74 percent of demand. An official of the Rupantarita Prakritik Gas Company Limited said 520 million cubic feet was being received from the domestic Summit Power terminal and 180 million cubic feet from the US-operated Excelerate terminal. Over the past two weeks, gas supply had remained steady at 700-750 million cubic feet, having fallen due to an LNG shortage over roughly the past month and a half. With the two LNG cargoes now arrived, those concerned hope for full-scale gas supply. Combining LNG and domestic gas field output, the country is currently receiving 2,334 million cubic feet, against a demand of 3,800 million cubic feet — though under normal circumstances, supply of 2,600-2,700 million cubic feet is available.
According to the Bangladesh Private Power Producers Association (BPPA), there are 53 furnace-oil-based power plants in the private sector, capable of generating more than 5,000 megawatts daily. If oil-based plants return to near-full capacity, roughly 2,500 more megawatts could be added to the national grid this month alone, which is expected to substantially reduce load-shedding while also freeing up gas saved in the power sector for supply to industry.
There is also fresh good news in the power sector: trial operations are set to begin this month at the Rooppur Nuclear Power Plant. After months of delay, Bangladesh’s dream Rooppur Nuclear Power Plant is finally set to begin commercial production in November. With 300 megawatts to be supplied to the national grid from the country’s first nuclear power plant, Bangladesh will enter the era of nuclear power generation. Officials say all necessary processes have been completed and the plant is now in the final stage before power generation. According to those concerned, Rooppur alone could add 1,200 megawatts of power supply to the country.
Experts say the economy has long been battered by the power-gas crisis. Even so, with a new government taking office after a long period, democratic order and political stability have returned to the country, creating a favorable environment for domestic and foreign investment.
Prime Minister Mr. Tarique Rahman is visiting the United States this month. US President Mr. Donald Trump has already expressed hope of meeting the Prime Minister and mentioned discussions on a Boeing purchase. Those concerned believe this visit will boost prospects for US investment in Bangladesh and enhance the country’s standing internationally. Economic momentum is expected to pick up significantly once the Prime Minister returns from the US. Development partners including China, Japan, Korea, Saudi Arabia, and Turkey are reportedly eager to strengthen ties and investment with Prime Minister Mr. Tarique Rahman.
Experts say that if the Prime Minister’s plan succeeds in resolving the power-gas crisis, his vision of elevating Bangladesh to a one-trillion-dollar economy by 2034 is not impossible to achieve. The Prime Minister’s Adviser for Finance and Planning, Professor Mr. Rashed Al Titumir, said Prime Minister Mr. Tarique Rahman operates on a “Bangladesh First” policy, and under his direction, the government is working toward elevating Bangladesh to a one-trillion-dollar economy by 2034 through economic recovery, reform, and reconstruction — with production-oriented industrialization given top priority in achieving this goal.
According to sources, the power-energy sector has long been in crisis, but is gradually being resolved under the Prime Minister’s direction through a combination of short-, medium-, and long-term initiatives, which is highly positive for the economy. To increase gas supply to industry, the government has decided to reduce gas use in power plants while boosting oil-based power generation. Following Prime Minister Mr. Tarique Rahman’s decisions and directives to swiftly address the energy crisis, the Ministry of Power, Energy and Mineral Resources and related agencies are working together.
According to the Bangladesh Power Development Board (BPDB), preparations have been made to generate up to roughly 4,000 megawatts from furnace-oil-based plants, currently instructed to run at about 80 percent capacity, with instructions to quickly raise that to 90 percent depending on the situation. The Bangladesh Petroleum Corporation (BPC) has been asked to stockpile as much furnace oil as possible. BPC officials say demand for furnace oil in the power sector has suddenly risen by up to 35 percent, prompting the corporation to increase imports to boost stock at oil distribution companies.
BPPA President Mr. David Hasnat said that once oil-based plants resume production, power supply to the national grid will increase and load-shedding will decrease, while pressure on gas-based power plants eases — allowing the gas saved to be supplied to industry, with positive effects potentially visible within the coming week. He said all private plants want to run at full capacity during this period, but the main obstacle is unpaid bills — BPPA members are owed roughly 70-80 billion taka, and prolonged non-payment has pushed many companies into loan default with banks. He said if the government clears these dues, private power plants will import oil on their own and resume generation.
Power Secretary Ms. Mirana Mahrukh said the government is determined to reduce load-shedding while taking all necessary steps to keep the industrial sector running, including instructions to raise output from furnace-oil-based power plants.
Energy expert Professor Mr. M. Tamim said that somewhat reducing gas supply to power plants in order to supply industry is a pragmatic decision under the current circumstances — not an ideal one, but given the existing crisis, there is no real alternative at the moment. This would somewhat ease the gas supply crisis in industry, while running furnace-oil-based power plants would also increase power supply.
Meanwhile, increased gas supply would allow shuttered gas-fired power plants to restart, easing both the gas and power crises, and fully restarting the wheels of factory production, with gas supply also increasing for CNG filling stations and households. A total of 10 imported LNG cargo ships are scheduled to arrive this month. Petrobangla officials say that if all cargoes arrive on schedule, concerns over gas will ease. Officials in the energy sector hope that if the ten scheduled LNG cargoes arrive on time this month, the country’s energy crisis will be resolved and gas-electricity supply will return to the level seen before July 21 — the day a mysterious fire at the US company Excelerate Energy’s floating LNG terminal in Maheshkhali triggered the gas crisis. The crisis was prolonged by delays in repairing the disabled terminal along with delayed arrival of imported LNG cargoes, leading to a severe gas-electricity shortage, a sharp drop in factory production, and shortages at households and CNG filling stations. However, gas supply began rising from August 22 following the arrival of LNG ships, with supply from the two terminals holding between 700-750 million cubic feet since then; with the new cargo, supply will rise to 1,100 million cubic feet.
An official of the Rupantarita Prakritik Gas Company Limited said LNG is being supplied to Summit from Saudi Aramco’s ship named Marea Energy, while yesterday’s arriving cargo will supply the Excelerate terminal. With the new LNG addition, Summit’s gas supply has exceeded 550 million cubic feet, while supply from the Excelerate Energy terminal has fallen to 180 million cubic feet — though with yesterday’s new cargo, this terminal too will be able to supply around 550 million cubic feet.
Officials expect that once both terminals together add up to 1,100 million cubic feet to the national grid, the country’s gas crisis will be resolved. The Liberian-flagged ship, with a liquefied gas capacity of 174,000 cubic feet, docked at the terminal yesterday morning. It had set sail from Barrow Island, Australia, with an LNG cargo bound for Bangladesh’s Maheshkhali LNG terminal in the last week of August.
Meanwhile, another Saudi Aramco cargo is scheduled to dock at the terminal on September 10, followed by POSCO on September 13, Gunvor on September 16, Aramco again on September 18, Total on September 23, and another Gunvor cargo on September 28. Two more cargo imports are in process this month, and Petrobangla has invited tenders for further LNG imports. Meanwhile, Iran’s Ambassador to Dhaka, Mr. Jalil Rahimi Jahanabadi, said there will be no obstruction to the passage of Bangladesh’s LNG-carrying ships through the Strait of Hormuz — a statement he made to journalists after meeting with State Minister for Foreign Affairs Mr. Humayun Kabir. Earlier, international media had reported concerns that disruption in the Strait of Hormuz could hinder LNG cargo supply to Bangladesh. Meanwhile, to address the ongoing energy crisis, the government has decided to purchase four more LNG cargoes.
