Gas crisis in industries as supply increased in power sector

The demand for electricity is at its highest during summer. When production of electricity cannot meet the demand, there has to be power load shedding. The government this time, however, has been trying to limit the load shedding.

So, the electricity generation has been increased to keep the supply of electricity uninterrupted. To maintain this production, the supply of gas has been increased in the electricity sector, cutting down on the supply of that to the industrial and residential sectors.

Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) sources say that the daily demand of gas in the country stands at 3.8 billion (380 crore) cubic feet. The demand can somewhat be met when there’s a supply of 3 billion (300 crore) cubic feet. Then the situation is managed by rationing (by reducing the supply in one sector and increasing in another). 

At present there is a supply of 2.7 billion (270 crore) cubic feet. Of that, 1.05 billion (105 crore) cubic feet is being supplied to the power plants.

The power sector is now considered with highest priority. As a result, the gas crisis has widened for the residential and industrial clients.

The largest gas distribution company, Titas Gas Transmission and Distribution, supplies gas to Dhaka, Gazipur, Mymensingh and Narayanganj regions.

Officials of this company say that their daily demand is 1.9 billion (190 crore) cubic feet. Currently, they are receiving about 1.52 to 1.53 billion (152 to 153 crore) cubic feet.

During times of such supply before, they could provide a maximum of 230 million (23 crore) cubic feet to the power sector. Now they have to provide 360 ​​to 370 million (36 to 37 crore) cubic feet in this sector. This has created a shortage of 130 to 140 million (13 to 14 crore) cubic feet in the industrial and residential sectors. There is a shortage of gas in the industry even during the normal times. Now it has increased even more.

Director of operations and mines at the Petrobangla, Md Rafiqul Islam told Prothom Alo that the supply of gas to the power sector has been increased and this has created a bit of shortage. Local gas production might increase a bit within a day or two.

The idea of increasing LNG (Liquefied Natural Gas) import is also being pondered upon, he added.

The country once produced 2.7 billion (270 crore) cubic feet of gas every day. Then the LNG import started in 2018 when the production started declining. The daily production has now dropped to 1.84 billion (184 crore) cubic feet.

Though the LNG import has increased than before, it is still not sufficient. About 800 to 850 million (80 to 85 crore) cubic feet of gas is supplied daily from the imported LNG.

A Petrobangla official stated that the company earns Tk 22.87 from selling per unit of gas while they are now spending an average of more than Tk 27 on the same unit.

Although gas is sold to the industry sector for Tk 30 per unit, the price of gas in the power sector is Tk 14.75. 

Even though the industrial customers pay higher prices, the power sector has to be prioritised in gas supply. Two more cargoes of LNG ships would have to be imported to meet the demand.

This will increase the amount of losses for Petrobangla. However, more cargoes can be imported if the Power Development Board (PDB) pays a price of Tk 27.

Narayanganj and Gazipur, the two districts next to Dhaka, are mainly known as industrial zones. Most of the export-oriented readymade garment factories are located here. Production in these factories has been disrupted for a long time due to the gas crisis. It has turned even worse in the last two weeks. 

Manager (transmission and distribution) of Titas Gas in Gazipur Md Redwan told Prothom Alo that the demand of gas in Gazipur stands now at 600 million (60 crore) cubic feet but only 350 million (35 crore) cubic feet is supplied.

According to industrial police data, there are a total of 2,176 factories in Gazipur district. Out of them, 1,187 are garment factories.

The number of small and large factories there would increase to about 5,000 if the unlicensed ones are counted in. Most of these factories are gas-powered.

Sohel Rana, Director of Sadma Group located in Mouchak area of Gazipur, told Prothom Alo that the gas pressure needs to be between 10 to 15 PSI (pound per square inch) for the factory to be running. But, there has not been more than two to three PSI of gas pressure in the last 15 days. Our production has been slashed by 30 to 40 per cent from this.

Deputy General Manager at Titas Gas’ Narayanganj office, Mamunur Rashid told Prothom Alo that the industrial and residential clients are receiving less amount of gas in some parts due to low supply.  

MS Dyeing Printing and Finishing Limited, situated in BSCIC Industrial Estate in Fatullah of Narayanganj, has a production capacity of 40 tonnes. However, their production has dropped to 10 tonnes.

The company sent a letter to Titas on 23 April mentioning the matter of commercial losses caused from the low gas pressure. 

While visiting the factory Sunday afternoon, the boiler was found shut and the gas pressure reading showed zero PSI. Another factory in BSCIC Industrial Estate, Fare Apparels Limited was out of production since morning and the workers were found sitting idle.

Research director at non-government research organisation, Centre for Policy Dialogue (CPD), Khondaker Golam Moazzem told Prothom Alo that managing the energy supply crisis is a major challenge for the government.

They have to take the social, economic and political aspects into consideration, he advised.

According to him, the government must not go for increased LNG import to strike a balance in gas supply. “We need to emphasise on exploring and producing gas domestically.”

[Prothom Alo correspondents in Gazipur and Narayanganj have helped prepare this report.]

* The report, originally published in the print and online edition of Prothom Alo, has been rewritten in English by Nourin Ahmed Monisha