LNG import on track to support power generation

Prime Minister Sheikh Hasina on Wednesday said the process of importing LNG from the spot market has already been taken to meet the demand for gas for power generation for the ongoing agricultural irrigation season, upcoming Ramadan and summer season.

The prime minister said this while responding to a tabled question from Jatiya Party MP Fakhrul Imam.

She said in 2008, the daily gas production capacity was 1,744 million cubic feet. In 2018, production capacity increased to 2,750 million cubic feet. “And currently the daily gas production capacity is 2,300 million cubic feet.”

The leader of the House said in order to meet the increased demand for gas for power generation during the current agricultural irrigation season, Ramadan and summer, to keep the production uninterrupted in the industrial sector and to continue the production of captive power produced under the own management of various factories for exports, the increased demand must be met by importing LNG at a high price from the spot market.

She said that is why the government has decided to increase the price of gas used only in electricity, industry, captive power and commercial sectors, leaving other consumer groups unchanged.

“The process of importing LNG (liquefied natural gas) from the spot market has already been adopted to meet the demand for gas in the said sectors.”

In response to the question of the ruling party MP Kazim Uddin Ahmed, the prime minister said the unprecedented success of increasing agricultural production and achieving food self-sufficiency in Bangladesh during the Awami League government has caught the attention of the world.

Sheikh Hasina said as per the election manifesto of Awami League, one of the goals of the government is to ensure food security and increase the exports of agricultural products.

“For this purpose, our government is ensuring reforms in fertiliser management, providing incentives to small and marginal farmers affected by natural calamities and development assistance in agricultural inputs including fertiliser,” she said.

The prime minister said agricultural machinery is being provided with development assistance to introduce a modern agricultural system in the country.

She said agricultural loans at low-interest rates, fertilisers at affordable prices, improved varieties of seeds and irrigation are being arranged to help the farmers.

“As a result, despite climate change and the impact of the Covid-19 pandemic and the global crisis, efforts to improve agriculture and introduce modern farming systems have continued,” she added.

In response to another question from Jatiya Party's Rustam Ali Farazi, Sheikh Hasina said the government is observing the global situation regarding the possibility of a recession in the world economy in 2023 and is taking various steps to keep Bangladesh free from the effects of a possible recession.

“Fiscal policy and monetary policy are coordinated very carefully.”

The prime minister said the government has taken steps to reduce unnecessary expenditure to continue the flow of necessary resources to the productive and social security sectors.

She said if the flow of resources to the income-generating productive sector and purchasing power of the marginalised people under the social safety net programmes can be kept normal, the impact of the economic recession will be mitigated to a large extent and it can be avoided.