To alleviate the continuing gasoline disaster affecting industries, the duration in-between government has decided to ask global tenders for offshore gasoline exploration on December 9 and for exploring onshore reserves, alongside side these in hilly areas, in March next one year, in accordance to Petrobangla Chairman Zanendra Nath Sarker.
This transfer is phase of a broader strategy to spice up native gasoline production, lower reliance on LNG imports and ease present constraints.
At a seminar titled “Programs of Mitigating Vitality Disaster in the Industrial Sectors” at The Westin Resort in Dhaka the day prior to this, Zanendra expressed hope that this initiative would entice extra global power companies, a lot like how Chevron has invested in Bangladesh’s power sector.
As well to increasing the domestic gasoline present, the federal government has decided to allow LNG imports through originate tenders, initiating 1 December. It’ll enable somebody to import LNG from the assign market, acknowledged the Petrobangla chairman.
Furthermore, tenders can be issued next month for the institution of latest floating LNG terminals.
The announcement comes as entrepreneurs and industrialists at the identical match expressed concerns about the continuing gasoline disaster, highlighting their lack of capability to impartial factories at elephantine capability, which has resulted in plenty of closures.
The match turn out to be once attended by Energy and Vitality Adviser Muhammad Fouzul Kabir Khan and Commerce Adviser Sheikh Bashir Uddin.
Fouzul Kabir acknowledged a gradual can be issued in December to bring the recently discovered gasoline helpful resource in Bhola to Dhaka.
He acknowledged although 70 mmcf of gasoline has been discovered in Bhola, it may per chance per chance probably per chance’t be dropped at Dhaka or industrial areas due to this of the lack of a pipeline.
“Keen businesses can take part in the gentle and bring Bhola’s gasoline to Dhaka in the construct of compressed pure gasoline [CNG] or liquefied pure gasoline [LNG],” he acknowledged, adding that bringing Bhola’s gasoline to Dhaka will seriously alleviate the gasoline scarcity in industries.
The capability adviser acknowledged, “Below the old government, 23 companies provided LNG. We are now opening the technique to all americans through originate tenders. Bidding for gasoline successfully drilling is additionally being made available, with offshore bidding scheduled for next December.”
Fauzul Kabir acknowledged the federal government expects to construct Tk360 crore over six months (January to June) by stress-free a condition linked to gas oil imports. Beforehand, gas oil suppliers were required to possess a refinery, but this condition has been lifted. So, major savings are anticipated.
When requested about the savings, BPC Chairman Md Amin Ul Ahsan rapid TBS, “In the gentle for importing gas oil for the upcoming January-June duration, suppliers maintain provided seriously lower premiums when put next to the old six months [Jul-Dec]. It’ll consequence in savings in the next six months.”
“For diesel imports at some stage in the Jul-Dec duration, the premium turn out to be once 8.75% per barrel. This time, 14 companies participated in the gentle, with the 2 offering the bottom premiums of 5.18% and 5.44%, which is why this saving will occur,” the BPC chairman acknowledged.
Fouzul Kabir acknowledged the federal government will float tenders for the set up of 30-40 renewable power projects next week.
He extra added that presently, the federal government is providing an annual subsidy of Tk36,000 crore for electrical energy, Tk2,000 crore for gas oil, and Tk6,000 crore for LNG imports.
At the match, business leaders known as for prioritising gasoline present to industries over households by stopping CNG gasoline present to vehicles.
In response, Petrobangla Chairman Zanendra Nath Sarker acknowledged that while the old government all for increasing gasoline present to the flexibility sector, the recent focal point is on boosting present to industries. He assured that the gasoline present to industries can be increased progressively next one year.
He acknowledged that in 2025, Bangladesh will have to import 115 LNG cargoes, with 56 of them beneath prolonged-term contracts, and the closing cargoes will have to be sourced from the assign market.
The Petrobangla chairman additionally acknowledged that 1,500 mmcf of gasoline can be added to the national grid from various domestic sources by December next one year.
“If the DPPs [Development Project Proposals] for gasoline successfully drilling are well-liked by the Ministry of Finance and the Ministry of Planning within the next 2-3 months, this is also conceivable to drill 50 wells by December 2025,” Zanendra Nath added.
In accordance with businessmen’s seek data from to redirect gasoline from power plant life to industries, Bangladesh Energy Fashion Board (BPDB) Chairman Md. Rezaul Karim acknowledged that reducing the gasoline present to power plant life would require an expand in coal and oil-based mostly power period, ensuing in higher period charges.
This, in flip, may per chance well well pause in both increased government subsidies or extra frequent load shedding, he acknowledged, stressing the significance of asserting an exact gasoline present for power period in the upcoming summer season season.
‘Machine loss in gasoline is $1b’
Whereas presenting the keynote at the seminar, Professor Ejaz Ahmed of Bangladesh College of Engineering and Skills (BUET) identified that the moderate machine loss in Bangladesh’s gasoline distribution over the closing three years, since 2020, stands at 9.82%, amounting to roughly $1 billion every person year, which he usually known as “theft” in assign of loss.
Nonetheless, the Petrobangla chairman disputed this, pointing out that the moderate loss for Petrobangla is 5-6%, although Titas and Bakhrabad maintain mighty higher losses.
He additionally talked just a few latest crackdown on unlawful gasoline traces in 200 factories in Keraniganj and urged business householders to cooperate with ongoing operations in Narayanganj.
Ejaz Ahmed acknowledged that the continuing gasoline and power crises maintain resulted in a huge decline in industrial production: the RMG sector has seen a 30-35% good deal, the steel industry has dropped by 25-30%, ceramic production has fallen by bigger than 50%, and roughly 40% of SMEs (miniature and medium-sized enterprises) were forced to shut down.
He important that while the financial sector requires 1,040mmcf of gasoline, finest 500 mmcf is being provided. Regardless of areas love Gazipur, Ashulia, Narayanganj, Chattogram, Savar, Dhaka, and Mymensingh being major industrial hubs, they fabricate now not appear to be receiving ample gasoline.
He proposed adjusting the gasoline distribution to higher attend these key industrial areas.
Businessmen seek data from snug gasoline, power present
Apex Personnel MD Nasim Manzur identified the skittish industrial employment due to this of the continuing gasoline disaster.
“For 3 years, we now maintain had to veil two gasoline-powered Rolls-Royce mills in our Savar factory with polythene because gasoline is unavailable,” he acknowledged, adding that the gasoline and power disaster is negative the factory’s machinery.
He proposed the elephantine operation of coal-fired power plant life, with gasoline from these plant life redirected to industries.
Feeble FBCCI president Abdul Awal Mintu voiced identical concerns, pointing out, “If the gasoline and electrical energy disaster is now not resolved, there can be no new investments or job advent in the nation, which is ready to finest exacerbate inflation. The federal government is relying completely on monetary protection to defend a watch on it.”
Feeble FBCCI president Mir Nasir Hossain acknowledged, “There turn out to be once a lack of transparency at some stage in the Awami League regime. Right here’s why we are suffering now. Gazipur factories are now not getting gasoline, while the 250 MW power plant in Mymensingh receives gasoline during the identical pipeline. That power plant must always be shut down, and gasoline must always be redirected to the Gazipur factories.”
FBCCI President AK Azad acknowledged, “Textile mills are going through 30-35% load shedding. Working factories on diesel mills is now not sustainable. A textile mill proprietor in Narsingdi had to shut phase of his factory due to this of the gasoline disaster. In the future, he turn out to be once in tears while praying with me.”
“The workers from the closed factories are coming to the gates of my factory trying to win jobs. How can I make employ of them when my possess factory is on the verge of closure? With the recent gasoline and electrical energy disaster, we can’t abet operations,” he acknowledged.
Amitabh Chakraborty, adviser to City Personnel, acknowledged, “We obtained gasoline permits for our factories between 2018 and 2021, but the federal government tranquil hasn’t provided the gasoline. Which capability that, we can’t initiate operations.”
Bangladesh Chamber of Industries (BCI) President Anwar-ul Alam Chowdhury Parvez added, “Let me fabricate one thing sure: the business community is struggling, in particular these in the manufacturing sector, who’re going through even higher challenges.”
He acknowledged that previously 5 years, gasoline prices maintain risen by 286.5%, electrical energy by 33.5%, diesel by 68%, and transport charges by 50%, with freight charges increasing by 30-40%. By September this one year, 200 RMG factories had shut down, and one other 300 may per chance well well impartial shut within a one year.
Parvez defined, “Industries can’t dwell on until they operate at 85-90% capability to interrupt even. With production at 60-75%, financial kill becomes inevitable, leading businesses to default on monetary institution loans.”
He extra stressed, “Reforms across sectors can take time, but the financial sector can’t give you the money for delays. Time is a luxury we attain now not maintain.”
