Photo : Collected
On Thursday, State Minister for Power, Energy, and Mineral Resources, Nasrul Hamid, directed his team to ensure the collection of outstanding gas bills totaling Tk 25,285.69 crore from six gas distribution companies by January 2024. He emphasized the importance of timely payment and instructed to disconnect the gas connections of government organizations if they fail to pay their bills promptly.
The state minister issued these instructions during the inauguration of the data center for the pre-paid gas meter installation project in the jurisdiction of Karnaphuli Gas Distribution Company Limited (KGDCL) in Chittagong.
Karnaphuli Gas Distribution Company has arrears of Tk 2,084 crores to the different government organisations.
During the event, he announced that new gas connections would only be provided at government-approved locations. Additionally, any unplanned connections should be disconnected immediately. He emphasised the need for officials of Karnaphuli Gas Distribution Company Limited to enhance monitoring efforts sincerely to prevent incidents similar to the one on Bailey Road from occurring in Chittagong. He warned of strict action against negligence.
Among the attendees were Petrobangla Chairman Janendranath Sarkar and Karnaphuli Gas Distribution Company Managing Director Mohammad Saqlain.
Over the past five years, Petrobangla has received a subsidy of Tk 23,500 crore. In the previous fiscal year, approximately Tk 6,000 crore was allocated for LNG in the budget. Recently, Petrobangla wrote to the Finance Division, highlighting a loss of Tk 25,500 crore from 2019 to May this year. The organisation now seeks a loan to cover LNG import bills. Additionally, due to a price hike in the spot market, an additional Tk 7,800 crore will be incurred.
Currently, the country produces about 2,300 million cubic feet per day (MMCFD) of gas from local gas fields to meet a demand of over 2,800 MMCFD, resulting in a gap of 500 MMCFD.
Consumers Association of Bangladesh (CAB) Energy Adviser Professor Shamsul Alam told The Daily Messenger the plan is ambitious. And the estimate will not comply the reality. During the 13 years, the government could fetch only $30 billion foreign investment.
As a result, thousands of crores have been wasted every year for idle power plants. The government is not able to pay the electricity, gas dues. Electricity prices are increasing again and again.
Referring to the new master plan as unrealistic, he said, if this master plan is implemented, the country's economy will fall further into the abyss.
He said that even if there is no demand, the government has given business opportunities to the businessmen of their choice with power plants.
Secretary for the Power Division Habbiur Rahman said in 2041, Bangladesh will enter the developed world. This master plan has been prepared according to the demand of situation and economic conditions.
In June 2023, the government imported 40 cargoes of costly LNG from the spot market to address the escalating demand for natural gas. Among these, eight LNG cargoes were procured from the higher-priced spot market. Previously, Bangladesh had been acquiring LNG from the spot market at rates ranging from $6 to $10 per MMBtu. However, following the onset of the war in February of the same year, prices surged dramatically, surpassing $57 per MMBtu.
The majority of gas supplied in the country is utilised for power generation, with allocations as follows: 43 percent in electricity generation, 15.79 percent in industrial plants, 15.25 percent in residential use, 15.12 percent in captive power plants of industrial facilities, 5.54 percent in fertiliser production, 4.16 percent in CNG stations, 0.76 percent in commercial establishments, and 10 percent in tea gardens.
Messenger/Fameema
