Price hike of LNG in int’l market causes energy crisis in country

Shahnaj Begum: The Energy Division is facing serious problems with procuring LNG from spot market as the price of the product in the international market has shot up three folds in the last one month creating an energy supply shortage in the country.
Without examining the ‘spot market LNG’ procurement system, the Energy Division in September planned to procure around 450 to 500 mmcf equivalent amount of LNG to supply it to the national grid to bring energy supply to the normal level, unfortunately it failed and triggered energy crisis across the country, sources said.
“Due to inexperience and unplanned move, we have failed to procure it, however, in the next fiscal year (June2021) we will be able to handle the issue in properly, Energy Division Senior Secretary Md Anisur Rahman told the Daily Observer on Saturday night.
According to him the four LNG ships were suppose to come, but only one ship reach Chattogram this month and one other ship in October.
Meanwhile, the Energy Division has asked to cut 100 mmcfd supply of gas from the power sector. “We will continue the gas supply to the industrial and commercial sector, the Energy Division Secretary said and added it will take another three weeks to bring normalcy.
Now we could procure 450 to 550 mmcf equivalent of LNG per day against the regular amount of around 1000 mmcf, which triggered the gas supply shortages, he said.
Meanwhile, the consumers in most of the city localities have been experiencing low gas pressure for the last few days, which is a regular phenomenon in winter season although severe winter is yet to hit the country.     The situation worsened from December 1 as Petrobangla, the state owned oil and Gas Corporation, has cut gas supply from the national grid, Petrobangla sources said.
 “They cut 100 mmcf gas supplies from the power sector, so we need to start operation from high cost oil-fired power stations in winter season, it would help us to continue the power supply but increase our cost,” a senior official of the Power Development Board told this correspondent on Saturday.
AH Khan, a resident of Mirpur, said, “Owing to low gas pressure women were unable to prepare food for their families.”
“For last one week, we were not able to prepare our breakfast as the burners dried out. We could start cooking our food from 2:30pm. This is a long pending problem but who cares,” the frustrated said.
Residents of the old town like Rajabazar, Indira Road, Jatrabari and Gendaria and parts of Mohammadpur, Mirpur, Kalabagan, Kanthalbagan, Jatrabari, Khilgaon, Bashabo, Malibagh, Rampura, Banasree, Badda and Uttara have complained about acute low pressure of gas for the past two weeks.
“We are going to sit with the zonal heads tomorrow (Monday) to address the issue, however, the situation would worsen if the temperature falls again,” the newly appointed  Managing Director of Titas gas Transmission and Distribution Company (Titas) Ali Md Mamun said on Saturday evening over phone.
“Since we are replacing some regulators in different areas so the pressure has fallen in the Mirpur area,” he said. According to him Titas is getting around 1,700 mmcf gas per day against the demand of 2,400 mmcf gas daily.
The country’s demand for natural gas is more than 3,700 million cubic feet per day while Petrobangla, the state-run Oil, Gas and Mineral Resources Corporation, could supply less than 2,700 mmcfd, Titas MD said.
Now approximately three million domestic users consume around 300 mmcfd gas, they added.
Recent cold wave worsened the situation due to rise in demand for natural gas for heating water and due to ‘condensate problem’ in the gas transmission and distribution lines, he added.
M Shamsul Alam, Energy Adviser to Consumers’ Association of Bangladesh (CAB) said, “Disruption in supply of gas in parts of the capital city is a common phenomenon in winter. But the government is yet to resolve the long-pending issue,” he added.
“People have been facing this problem every year, but the government could not resolve the long-pending issue even after raising the gas tariff,” he added.