Play store
The country’s ongoing energy crisis is expected to ease soon following the repair of a Floating Storage Regasification Unit (FSRU) and the arrival of new LNG cargoes, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said on Thursday.
“The current gas shortage was triggered by an unexpected fire on an FSRU. While a major disaster was averted, the damage caused significant disruption to gas supplies and required specialised repairs by engineers from Britain and Singapore,” he said.
The minister was speaking as the chief guest at a discussion titled “Navigating Bangladesh’s Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future”, organised by the Centre for Policy Dialogue (CPD) in Dhaka.
Iqbal Hassan Mahmood said a 72-hour complete shutdown would be required for boiler maintenance after the second phase of repairs is completed, which could temporarily worsen the gas shortage.
However, the government has already procured LNG cargoes that will be unloaded immediately after the FSRU becomes operational, he said, expressing hope that the move would significantly improve gas supplies.
The minister also highlighted a major shift in the country’s electricity demand pattern, saying peak demand now extends beyond midnight and recently reached 18,000 megawatts.
He attributed much of the nighttime demand to the charging of battery-run rickshaws. Many charging points use illegal electricity connections, he said, adding that ministry officials face public resistance and even physical altercations when attempting to disconnect them.
Outlining the government’s long-term energy roadmap, the minister said three new FSRUs would be established by 2029 at Payra, Mongla and Hiron Point to strengthen LNG supplies and improve distribution, particularly in the Khulna region.
The government also plans to construct an undersea gas pipeline from Chattogram to Bakhrabad to overcome limitations in the existing pipeline network, he said.
Iqbal Hassan Mahmood said steps were being taken to strengthen Bangladesh Petroleum Exploration and Production Company (BAPEX) after years of inadequate exploration. Two new drilling rigs have been ordered to intensify domestic gas exploration, he added.
To provide immediate support to industries, the government has allowed a private company to transport gas from Bhola directly to factories.
Bangladesh is also holding discussions with Malaysia on introducing a containerised gas delivery system for industrial users, which could help supply gas without waiting for new pipelines to be built, he said.
On energy-sector reforms, the minister said the government was moving away from the existing “single buyer system” to encourage greater private-sector participation and strengthen energy security.
A new Fuel Oil Policy is also being drafted to allow private-sector entities to import and distribute oil after consultations with stakeholders, he said.
Highlighting the recently adopted Solar Energy Policy, the minister said the government had introduced tax holidays and reduced duties on batteries and inverters to 5 percent to encourage renewable energy expansion.
Concluding his remarks, Iqbal Hassan Mahmood said the government was working on a “war footing” under the leadership of the prime minister to address the energy crisis and sought moral support from investors and the media in tackling the challenges.