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Manufacturing, cooking major sufferers

Gas output plummets, worsening user woes

Industrial throughput nearly halves, say industry sources


M AZIZUR RAHMAN | Sunday, 26 November 2023



Overall natural-gas production in the energy-hungry country plummeted by nearly a third, worsening the persisting crisis in gas-guzzling industries, power plants, fertiliser factories, commercial entities and households.
According to state-owned Petrobangla, the overall natural gas output on November 24 was around 2,613 million cubic feet per day (mmcfd), which is around 30.50-per- cent lower than Bangladesh's overall production capacity of 3,716mmcfd.
Country's overall natural gas output is, however, nearly half of overall demand, which is projected by Petrobangla above 4,000mmcfd.
The gas crisis is now affecting all sorts of consumers, resulting in cut in industrial output and abject sufferings of the commoners, market- insiders said.
Sources said gas supply across Bangladesh had begun falling sharply early this month as US multinational Excelerate Energy ceased LNG re-gasification at its plant for its overhauling and capacity expansion.
Excellence, Bangladesh's first floating storage and re-gasification unit (FSRU) owned by Excelerate Energy, closed operations on November 1 and went for its first-ever overhauling, which was long-overdue for renovation work.
Country's liquefied natural gas (LNG) dropped by 43 per cent to around 540mmcfd from previous 950mmcfd as the re-gasification is done by only one FSRU instead of previous two, according to official data of Petrobangla.
Previously, when the country was dependent on one FSRU for LNG re-gasification last year, Petrobangla had to ration gas supplies to industries and power plants and the country had to rely more on oil-fired power plants.
To avoid similar energy crunch ahead of the general election, slated for January 2024, Petrobangla has urged the largest-natural gas producer, Chevron, to augment overall natural gas output by at least 50mmcfd from its three onshore gas fields, a senior Petrobangla official said.
As on November 24, 2023, Chevron Bangladesh Ltd was producing around 1,246 mmcfd of natural gas from three operating onshore fields - Bibiyana, Jalalabad and Moulvibazar - located in blocks 12, 13 and 14 respectively.
Chevron's gas production currently accounts for over 60 per cent of the total output from local gas fields, according to Petrobangla data.
Bangladesh's overall natural gas output is currently hovering around 2,613 mmcfd including 540 mmcfd regasified LNG, further reveal Petrobangla data.
But, sources said, Chevron currently does not have any scope to enhance gas output from any of its three operating fields.
It can, however, ramp up output once the drilling result of its 27th well in the country's largest-producing Bibiyana gas field comes out positive.
Even with due gas bills ballooning, sources said, Chevron started drilling the 27th well in Bibiyana gas field a couple of months back.
The gas field under block 12 in north-eastern Habiganj district is currently spewing around 1,060mmcfd gas, which accounts for over half the total output from local gas fields.
Regarding gas crisis, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem says, "We are not getting sufficient quantity of natural gas, which is hampering industrial output badly."
If natural gas is found in some areas in the morning, they are not getting in the evening, he said as an instance of the crunch.
Similarly, if the industries get gas in the evening, they are not getting the fuel in the morning, the export-industry leader rues.
Industrial output nearly halved as a consequence of fuel fiasco, Mr Hatem adds.
The compressed natural gas (CNG) filling stations are getting lower than expected gas pressure in many areas where gas-transmission pipelines are narrow, general secretary of Bangladesh CNG Filling Station and Conversion Workshop Owners Association Farhan Noor told the FE.
"Natural-gas-pressure requirement in CNG filling stations is around 15 per square inch (psi), but the stations nearing some industrial areas get around 4-45psi often, and in many other areas, it turns to almost zero psi," he alleged.
Power plants are also not getting required gas to generate electricity.
Some two and a half dozen gas-fired power plants are now shut as the state-run Petrobangla could supply around 812 mmcfd of natural gas to power plants against their demand for 2,240mmcfd, according to official data as on November 24.
Residents of different areas in the capital city, Dhaka, are facing acute gas crisis and failing to cook food with the fuel although they are paying gas bills to the government, it has been alleged.
Commoners in Mirpur, Gabtoli, Savar, Bashabo, Khilgaon and Paltan areas are the worst-affected ones.

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