Industries struggling with gas shortages may get some relief from this evening as LNG supplies are expected to rise after a technical fault that disrupted ship-to-ship LNG transfer in July is finally fixed.
The development was revealed at a meeting between Prime Minister Tarique Rahman and business leaders at his Secretariat office yesterday (14 September), where energy supply emerged as one of the key concerns raised by the business community.
LNG supply stood at 764 million cubic feet per day (mmcfd) as of 4pm yesterday. Energy ministry officials said the supply could rise to 950-1,000mmcfd from today.
The meeting also brought another significant development for the country’s gas sector.
Chevron has agreed to drill new wells in a joint venture with state-run Bapex, according to businesses who attended the meeting.
The agreement marks a shift from the US energy company’s earlier position, when Chevron had denied that it would undertake such joint-venture drilling with Bapex.
Business leaders and government officials also discussed how Bangladesh could make better use of its coal-fired power plants and diversify its energy sources to reduce pressure on the country’s increasingly import-dependent energy system.
The business community also raised concerns over the quality of services at Chattogram port. Government officials at the meeting, however, pointed out that the port operates round the clock and urged businesses to make greater use of its 24-hour operating capacity.
Bapex, Chevron joint exploration
Business leaders said the prime minister told them that the formal process for joint gas exploration by Bapex and Chevron would begin soon. Tarique also said the government would soon procure two drilling rigs for Bapex to extract natural gas.
On 13 September, a high-level Chevron delegation led by Javier La Rosa, president of Base Assets and Emerging Countries, met Tarique at the Prime Minister’s Office at the Secretariat.
The meeting discussed Chevron’s investment in Bangladesh’s energy sector, particularly expanding investment in existing and mature gas fields and exploring new ones.
Gas supplies to improve today
The prime minister told business leaders that gas supplies to industries would return by today to their previous level, according to a statement from the prime minister’s press wing.
On 21 July, the FSRU operated by Excelerate Energy in Maheshkhali was shut down after a fire damaged its boiler-related system during an LNG ship-to-ship transfer.
The terminal resumed partial operations about 25 days later but stopped supplying gas again on 19 August amid a shortage of LNG cargoes.
Following repairs, the FSRU is now back in operation and can supply up to 600mmcfd of gas. Actual supply, however, will depend on LNG cargo availability and operational conditions.
However, BGMEA President Mahmud Hasan Khan Babu told TBS that the country’s two FSRUs would be able to operate at full regasification capacity by Wednesday evening.
It could take another three to four days for the increased supply to reach industries, he said.
Even when both FSRUs were operating at full capacity, industries faced a gas shortage, Babu said. Business leaders have therefore proposed increasing generation from oil-fired power plants and shutting some gas-fired plants to free up gas for industries.
Int’l tender soon for exploration in deep-sea blocks
Bangladesh Chamber of Industries (BCI) President Anwar-ul Alam Chowdhury Parvez said the government plans to invite an international tender soon for energy exploration in deep-sea blocks. It is also reviewing why companies that bought tender documents in the previous round did not participate, he said.
The government also plans to reassess capacity charges and introduce a “no electricity, no capacity charge” policy for power plants whose lease agreements have expired, Parvez said.
The government has decided in principle to extract coal from the Barapukuria mine, he said. Before extraction, authorities will consult residents who need to be relocated.
Another business leader said the government is prioritising foreign companies to operate and manage the country’s ports, with Invest Bangladesh working on the initiative.
Tk6,000cr dues released for furnace plants
Business leaders said the government has released Tk6,000 crore of the Tk14,000 crore owed to furnace oil-based power plants. The plants are currently generating 3,000-3,500MW against a combined capacity of 5,637MW across 53 plants.
At the meeting, business leaders proposed running oil- and coal-fired plants while keeping gas-fired plants offline to free up more gas for industries. FBCCI administrator Fazlul said they recommended urgently ensuring full-capacity generation from these plants.
Bankers opposed financing closed factories from a Tk60,000 crore fund set up by Bangladesh Bank, while business leaders backed efforts to reopen viable factories, Fazlul said.
The governor said the fund would balance the interests of banks and businesses, with financing denied to factories if it could put funds at risk or had little prospect of revival.
3rd FSRU by Dec 2027
According to the press wing’s statement, Tarique also announced plans to install a third FSRU. Preparations for the terminal have largely been completed, and work will begin soon. The government expects to connect the third terminal by December 2027, he added.
PM’s Adviser Mahdi Amin said the government aims to have three FSRUs initially and five eventually, with efforts under way to add the third before 2028.
Businesses satisfied with govt plan
After the meeting, FBCCI administrator Fazlul Hoque said, “The biggest takeaway and relief from today’s meeting is the prime minister’s assurance that from tomorrow night, we will overcome the fresh gas and power crisis and return to the previous situation.”
He said industrial expansion and new investment would create more demand for gas, which the government has a clear roadmap to meet. “Business leaders are satisfied with the plan.”
“It was not a case of the government presenting its plans while we simply listened and left. The meeting was scheduled for two hours but ran for nearly three. Business leaders raised various concerns and suggestions, and we left satisfied with the responses,” he added.
PM’s Adviser Mahdi Amin said the work is under way to drill around 150 gas wells, followed by another 150, he said. Plans also include land-based LNG terminals and expansion of gas transmission and distribution networks.
The government plans to diversify generation through solar power, with greater emphasis on solar energy and domestic resources, Amin said. The goal is to build a diversified power and energy system that ensures uninterrupted supplies to industries, he said.
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