Gas
Energy Division regrets inconvenience from gas crisis in Chattagram, elsewhere
Energy Division has expressed regrets for inconvenience of the consumers for gas crisis in Chattagram and elsewhere in the country due to suspension of the LNG supply from FSRU in Maheshkhali following a technical fault there.
Uninterrupted gas supply by 2026 : Nasrul Hamid outlines energy plans
In a press release the Energy and Mineral Resources Division said that due to technical fault at Maheshkhali LNG FSRU, gas supply to Chattagram and other areas of the country has been suspended since early morning on Friday.
Acute gas crisis hits Chattogram city residents hard
This has led to a fall in the pressure of the gas supply and consumers have been experiencing gas crisis.
The departments concerned are working to repair the fault in the FSRU with Energy and Mineral Resources Division, Petrobangla and other companies are supervising work round the clock.
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So, the Energy and Mineral Resources Division offered regrets for the inconvenience of the consumers, said the press release.
Uninterrupted gas supply by 2026 : Nasrul Hamid outlines energy plans
Bangladesh’s State Minister for Power, Energy and Mineral Resources, Nasrul Hamid, announced a commitment to ensuring uninterrupted gas supply to consumers by 2026. This statement came during a discussion with reporters on Tuesday (January 16, 2024) about the power and energy sector's advancements, potential, and obstacles.
Having achieved the milestone of 100 percent electricity coverage, Hamid noted the government's focus is now on providing continuous power and gas supply by 2026. He highlighted that Bangladesh currently imports 20 percent of its gas, utilizing 80 percent from domestic sources, with no immediate plans to increase imports.
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The exploration of gas in deep sea areas could significantly bolster the energy division, Hamid mentioned. He acknowledged the existing challenges, particularly the ongoing gas shortage, attributing it to reliance on a Floating Storage and Regasification Unit (FSRU). Hamid assured that the current gas crisis is temporary, partly due to reduced pressure during severe winters.
Plans are underway to operationalize the FSRU soon, which is expected to add 400 mmcf of gas to the system. Additionally, another FSRU is set for renovation, with an aim to maintain uninterrupted gas supply starting next March. The minister revealed plans to incorporate two more FSRUs around 2026 and 2027 to meet the anticipated gas demand of 6,000 MMCF in 2027.
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Hamid expressed optimism about domestic gas exploration, noting that most drilled wells have discovered gas. He emphasized the Bhola to Barishal gas pipeline as a top priority, with activities commencing this year. Gas from Bhola, currently supplied in CNG form, is expected to increase and be fully operational by mid-March next year.
The Bibiyana gas field also holds promise, with the minister expressing confidence about significant gas findings there. The immediate goal is to drill around 46 wells by mid-2025, followed by an additional 100 wells. This exploration is projected to add 500 mmcf of gas from domestic sources between 2024 and 2025.
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Hamid concluded with a hopeful note on the Bibiyana field, which potentially harbors about 1.6 tcf of gas, further enhancing the nation's energy security and self-reliance.
Acute gas crisis hits Chattogram city residents hard
Different areas in Chattogram city have been experiencing shortage or low pressure in gas supply for the past one and a half months, hampering the household chores and production at industrial units.
City dwellers said although the gas crisis started in the mid October, it has intensified recently. Some of them alleged that they do not get any gas even in 24 hours.
According to Karnaphuli Gas Distribution Company Limited (KGDCL), the gas shortage in Chattogram port city turned acute due to suspension of gas supply from one of the two LNG terminals in Moheshkhali.
Besides, the authorities also suspended gas supply in households due to maintenance purposes.
KGDCL authorities said Chattogram used to some 310-400 million cubic feet of gas from the national grid during normal time but on January 3 it reveived only 280 million cubic feet.
The city dwellers have been experiencing the gas crisis since October 22 and gas supply remains suspended from 9 am to 3 pm in most of the areas.
Industries in Dhaka, adjoining areas to get Bhola’s gas in CNG form
KGDCL authorities said the gas shortage may continue for a long time due to low pressure of gas supply from Moheshkhali LNG gas terminal.
Meanwhile, Omar Hazzaz, president, Chattogram Chamber of Commerce and Industries (CCCI), urged State Minister for Power, Energy and Mineral Resources Nasrul Hamid to take necessary steps to mitigate the sufferings of the consumers.
He also sent a letter to the minister on Wednesday.
“Chattogram needs 400-450 million cubic feet of gas but only 280 million cubic feet is available now. Of the total gas, nearly 100 million cubic feet gas is used in two fertilizer factories and one thermal power plant while the rest are being distributed to the residents, industries and CNG filling stations, which is not sufficient,” the letter reads.
The rest of the gas is being distributed to a large number of residential consumers in the city, factories and CNG stations using various strategic methods. As a result, the factories and households are facing a serious gas crisis, it added.
Industries in Dhaka, adjoining areas to get Bhola’s gas in CNG form
Managing director of KGDCL (operation division), Engineer Aminur Rahman, said the people of Chattogram port city depend on LNG gas supply and the supply of gas has reduced remarkably.
“It is difficult to say how long the crisis will stay,” he added.
Talking to some residents in Lalkhan Bazar, Kazir Dewri, Askar DighirPar, Khulshi, Jamal Khan lane, Dewanji Pukur Par, Dewan Bazar, Hem Sen Lane, Shulokbohor, Ghat Farhadbegh, Bakolia, Chawkbazar and others area, this UNB correspondent found that people of those areas are passing their days in misery during this winter.
Many residents of the areas said it is not new. Every year they experience gas crisis from November to February.
Shahnur Sultana, an employee of a bank, said “Now I have to leave my house in the morning without having any breakfast as there is no gas in my house in the morning. We have to buy food from a local hotel.”
KGDCL authorities said the gas supply to the domestic consumers has been disrupted as they have to supply gas to Chattogram Urea Fertilizer Limited (CUFL) and Karnaphuli Fertilizer Company Limited (KFCL).
Raid Uddin Ahmed, General Manager (Marketing, South Division) of KGDCL, said two Moheshkhali LNG terminals supply a total of 800-900 million cubic feet of gas to the national grid but now supply from one of them has been suspended due to maintenance work.
The supply situation will improve after the completion of the maintenance work, he added.
There are 6,01,914 consumers under KGDCL and of these, 5,97,516 connections are given to households.
Gas supply from Bhola to Dhaka’s industries in CNG form begins
Gas shortage hits many areas in capital city
Many areas of the capital city Dhaka city have been hit by a gas shortage causing problems for the consumers.
The situation may worsen in the coming winter as no necessary measure is in sight to address the problem.
According to official sources, the areas which have been severely suffering most due to the crisis include vast area of Mirpur and Mohammadpur, Basabo, old part of city, specially Lalbagh and Chawkbazar, Segunbagicha, Tejgaon, Dhanmondi and Gulshan.
Residents in these areas alleged that they don’t get adequate gas during the day time.
“In most of the time, we have to cook our meal during midnight when gas flow is found to be a little bit better. Otherwise, we need to use LPG as an alternative to piped-gas", said Taslima Begum, a resident in the Green Road area of Dhanmondi.
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“We have to spend a good amount of money for using LPG alongside paying to Titas Gas as consumers of its piped gas”, she told UNB this week.
Halima Aktar, another Titas consumer living in Mohammadpur echoed the same, saying that she has to cook in the might as gas is not available from morning to 10 pm.
An employee of National Press Club noted that in most of the days in day-time the club has to face very low pressure in the gas pipe that disrupts normal cooking.
Similar allegations of no gas supply in day time or low pressure in the gas line are being received from the consumers in different parts of the capital.
Confirming the allegations, Md. Emam Uddin Sheikh, general manager of Titas Gas Transmission and Distribution Company Limited, said that the gas supply situation in Dhaka and adjoining areas is very much part of the country’s overall supply condition.
Read: Gas supply to remain off for 7 hours in parts of capital Thursday
“The country has a shortage of more than 1000 million cubic feet of gas per day (MMCFD) against the overall demand for 4000 MMCFD”, he told UNB.
He informed that Titas Gas, which is responsible for gas supply to Dhaka and adjoining districts, now receives 1400-1500 MMCFD gas against a demand for 1800 MMCFD meaning a shortage of 300-400 MMCFD gas.
However, official data of Petrobangla, the state-owned upstream organisation in the gas sector, shows that the country produces 2663.5 MMCFD gas on Monday including imported LNG (liquefied natural gas) against the demand of 4000 MMCFD.
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It shows that the country is getting 600 MMCFD gas from imported LNG as imports witnessed a fall in recent months from a normal 800-900 MMCFD.
Official sources said the recent dollar crisis has forced Petrobangla to reduce its import of LNG which intensified the crisis in recent days.
Official sources said it is unlikely that Petrobangla would be able to increase the import of LNG or increase the production from local sources within the next few months as there is no assurance of ending the ongoing dollar crisis.
The country’s foreign exchange reserves declined to below $22 billion this year from $48 last year which put Petrobangla in trouble to get adequate dollars to pay its international suppliers against its purchase of LNG from the global market.
The country’s gas industry insiders said that the overall gas supply situation deteriorate in the coming winter with no visible sign of easing the dollar crisis.
Gas supply to remain suspended for 4 hours in northern part of Dhaka city Thursday
Gas supply will remain suspended for four hours on Thursday in different areas of the northern part of Dhaka city.
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According to an emergency public notice of Titas Gas Transmission and Distribution Company Limited, the gas supply will remain off for all kinds of consumers at Uttarkhan , Dakkhinkhan, Uttara Sector 6 and Uttara Sector 8 from 10 am to 2 pm on Thursday for emergency line relocation works in the Sonargaon-Janapath Rail Crossing area.
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Regretting the temporary inconveniences of its customers, the Tatas Gas authority also said that the consumers at the adjoining areas may experience low pressure in the gas supply.
Father, son die inhaling toxic gas in septic tank in Barishal
A 70-year-old man and his 43-year-old son died after inhaling toxic gas in a septic tank at Udaykathi in Banaripara upazila of Barishal district on Sunday.
The deceased were identified as Abul Kalam Hawladar and his son Quamrul Islam.
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Quoting family members, Sub-inspector Osman Goni of Banaripara Police Station, said Abul Kalam built a new septic tank at his house. On Sunday, Quamrul was tasked to remove the water inside the septic tank.
While removing water through a bucket, the bucket fell inside the tank. Quamrul then went in the septic tank to get the bucket and fell unconscious.
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Getting no response from Quamrul, Abul Kalam also went into the septic tank and fell unconscious.
Later, local people recovered their bodies and took them to Swarupkathi Upazila Health Complex where the doctors declared them dead.
Efforts on to invite int’l bidding within a month for gas exploration: Energy Secretary
Bangladesh government's Energy Secretary Dr. Md. Khairuzzaman Mozumder has said that the government has planned to invite international bidding for offshore hydrocarbon exploration within a month.
“Last week the Cabinet Committee on Economic Affairs approved the New Model Production Sharing Contract (PSC). Now we’re making our highest efforts to go for international bidding within a month,” he told a webinar on Wednesday (August 09, 2023).
The Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources organized the webinar to observe “the National Energy Security Day”.
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The energy secretary said the government is assuming that this time a huge response will be received from international oil companies (IOCs) as the Model PSC has been modified making it more attractive.
“We’re already getting some positive indications in this regard,” he added.
He said the government has been working for ensuring energy security and part of it LNG is being imported to supply the gas to the industries on priority basis.
Dr Tawfiq Elahi said that the issue of gas exploration has to be on a realistic basis.
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“It’s unrealistic to determine a gas reserve in any place until we find gas through drilling, “he said adding, the possibility of having new 10 trillion cubic feet (TCF) at different locations could be a class-room lecture.
“But until we drill and find it, we should not have prospects of 10 TCF gas,” he said criticizing Prof Anwar Hossain’s statistics about prospects of new gas in the country.
Anwar Hossain in his speech said if the government drills 18 new wells, it can find 9-10 TCF gas easily as the country’s success ratio in drilling is 1:3.
Mollah Amnzad said that drilling of wells is a very costly matter. So, the foreign companies can be engaged in this regard.
He mentioned that the government is experiencing a dollar crisis and now it’s failing to pay the IOCs, private power producers and also the LNG suppliers.
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He said the government has made many good policies. But its problem with implementation has now created the current energy crisis.
Power secretary Habibur Rahman said that the government has taken a move to generate 2000-3000 MW of electricity from renewable sources in the next 2-3 years.
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Cabinet body approves draft contract to invite int’l bidding for offshore gas exploration
The Cabinet Committee on Economic Affairs (CCEA) in a meeting today (July 26, 2023) approved the draft ‘Bangladesh Offshore Model Production Sharing Contract (PSC) 2023’ in order to invite international bidding for hydrocarbon exploration in offshore areas of the country.
Finance Minister AHM Mustafa Kamal presided over the meeting.
However, Additional Secretary of the Cabinet Division, Sayed Mahbub Khan, who briefed about the outcomes, did not give further details of the Model PSC.
"This is the final approval to the draft Model PSC 2023,” he said.
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According to official sources, the new Model PSC was prepared as part of the plan to invite international bidding within the current year for offshore deep and shallow water gas blocks by making Bangladesh more attractive to international oil companies and draw investment in hydrocarbon exploration in the Bay of Bengal.
Under the initiative, the gas price was tagged with the price of Brent Crude in the international market so that the gas price will be flexible.
“Under the plan, we’re going to offer the price of gas at 10 percent of Brent Crude,” a top official of Petrobangla, the state-owned national gas company, told UNB.
The official, preferring anonymity, said if Brent oil is traded at $75 per barrel, the gas price would be $7.5 per thousand cubic feet (MCF). The gas price will always remain linked with the international oil price, he said, referring to the new provision of the 'Model PSC 2023'.
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But there will be no difference between the price of gas in shallow and deep water blocks, he said, describing other characteristics of the 'Model PSC 2023'.
“If the oil price goes down or up, the gas price will follow it rationally and Bangladesh will purchase the explored gas from the international oil companies at this rate,” said the official.
Under a Model PSC, normally, if any international oil company (IOC) discovers gas, it gets a 40 percent stake while the government obtains the remaining 60 percent.
The government also buys the IOC's gas at a certain price. So if the gas price is raised, IOCs feel encouraged to invest in exploration work.
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Official sources said the country has a total of 48 blocks, of which 26 are located offshore. Of the 26 offshore blocks, 11 are located in shallow sea (SS) water while 15 are located in deep sea (DS) water areas.
Of these, 24 offshore gas blocks remain open for IOCs while two blocks—SS-04 and SS-09–are under contract with a joint venture of ONGC Videsh Ltd and Oil India Ltd where drilling works have recently started.
Bangladesh's offshore area remains unexplored despite the settlement of its dispute with neighbouring Myanmar and India over maritime boundary almost nine years ago.
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Currently, about 2300 mmcfd gas is being produced from 22 gas fields in the country, while about 700 mmcfd gas is being imported from abroad to meet the demand of about 4000 mmcfd, leaving a deficit of about 1000 mmcfd.
The government had last amended the Model PSC in mid-2019, whereby the price of gas for any participating IOC, that is, the price at which they would sell the gas to the government, was raised to $5.5 per MCF for shallow water blocks, and $7.25 per MCF for gas extracted from its deep sea blocks.
The source also informed that the new proposal has been prepared as per the recommendations of a Scottish consultancy firm, Wood Mackenzie, which was appointed last year to work out the new plan for Petrobangla to attract international bidding from IOCs.
Talking to reporters, Petrobangla Chairman Zanendra Nath Sarker recently said the organisation has forwarded its proposal along with the Scottish consultancy firm’s recommendation to the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources, seeking its approval for the plan.
Another senior official of Petrobangla also said that as soon as the Cabinet body approves the proposal, the organisation will invite international bidding within two months. “In this case, we hope we can go for bidding within this year,” he told UNB preferring anonymity.
He said previously many IOCs were reluctant to participate in bidding for exploration due to the price offered by Bangladesh.
Govt planning to invite int’l bidding for offshore blocks with more attractive PSC
“Now we hope it will be a lucrative offer for the IOCs to invest in the offshore areas of Bangladesh for gas exploration,” he added.
Official sources said the recent excessive hike in fuel prices, especially that of liquefied natural gas (LNG), has prompted the government to go for further amending the existing PSC so that the IOCs get interested to invest here.
There was a target to invite international bidding in March 2020 for exploration in offshore areas, but that got postponed due to the coronavirus pandemic that emerged at exactly the same time.
"The recent upward trend in oil and gas prices has pushed the policymakers to further raise the gas price by introducing much more flexibility and incentives including keeping the export option open in the PSC," said another Petrobangla official.
He mentioned that the government had to import LNG at $36 per MMBtu while it was just below $10 early last year.
The Russian invasion of Ukraine has further deepened the global market volatility pushing up petroleum price over $100 per barrel, the highest in the last 7 years.
Now, again oil and gas prices are on a downward trend and Brent crude oil is traded at $75 per barrel while LNG price is at below $14 per MMBtu.
New PSC: Petrobangla awaits final nods to invite int’l bidding for offshore blocks
LPG price slashed again, 12kg cylinder to cost Tk 999
Price of liquefied petroleum gas (LPG) has been slashed again. Bangladesh Energy Regulatory Commission (BERC) announced the new price, saying that a 12kg LPG cylinder’s price has been reduced by Tk 75.24.
A retail consumer will now get it at Tk 999 instead of Tk 1,074 (including VAT).
Prices of other sizes of LPG cylinders – from 5.5kg to 45kg – will go down rationally, Md Nurul Amin, newly appointed chairman of BERC, said at a press briefing on Monday at the BERC office in Dhaka.
The new prices will be effective from 6 pm today (July 3, 2023).
LPG price drops by Tk 13.42 per kg
BERC officials said the LPG price witnessed a decline in the local market due to the decrease in the prices of Saudi CP (contract price).
Bangladeshi LPG operators normally import their products from the Middle-East market on the basis of Saudi CP.
As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also dropped to Tk 46.59 (including VAT) per litre from the previous Tk 50.09.
12-kg LPG price goes up by Tk 57 to Tk 1235
The price of LPG, marketed by state-owned LP Gas Company, will remain the same as it is locally produced with a market share of less than 5 percent.
LPG witnessed the highest price at Tk 1,498 (per 12kg cylinder) in the local market in February this year following the start of the Russia-Ukraine war in February last year.
12kg LPG cylinder to cost Tk 244 less
Gas supply to stop for 8 hours at different areas in city Saturday
Gas supply will remain suspended for eight hours on Saturday (June 3, 2023) at different areas in the capital city Dhaka for emergency replacement and removal of gas pipelines.
According to a press release of Titas Gas Transmission and Distribution Company Limited, the areas where gas supply will be suspended from 10 am to 6 pm on Saturday include the north side of the railway line up to Mogbazar, Mouchak, Malibagh Rail-gate, Nayatola, Gabtala, Greenway, Payarabagh, Madhubagh, and Moghbazar T&T Colony.
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Reheating for the temporary inconvenience, the Titas gas authority said the adjoining areas may experience low pressure problem in gas supply during the period.