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Nationwide gas shortage triggered as cyclone damages LNG FSRU

Ashraful Islam Raana
11 Jun 2024 21:07:25 | Update: 11 Jun 2024 23:44:29
Nationwide gas shortage triggered as cyclone damages LNG FSRU
– Courtesy Photo

A nationwide gas shortage has been reported, impacting CNG refuelling stations, power, industrial, and residential sectors as cyclone Remal hit the Cox’s Bazar coast two weeks ago, damaging a Floating Storage Regasification Unit (FSRU) of a LNG terminal and halting gas supply.

This shortage has caused over 500 CNG refuelling stations to experience low pressure or no gas at all, along with frequent load shedding in industrial and residential areas. Many residents in the capital have also been experiencing low gas pressure, hampering cooking.

Sources at Petrobangla reported that the FSRU of the Summit terminal, one of the two floating LNG terminals in Maheshkhali, Cox's Bazar, was extensively damaged when cyclone Remal hit the coast of Bangladesh. Repairs and return of the terminal from either Singapore or a Middle Eastern country are expected to take about three more weeks.

The sources further said that before the cyclone, around 3,100 million cubic feet per day (MMCFD) of gas was supplied, with 2,000 MMCFD from domestic sources and 1,100 MMCFD from LNG import. Post-cyclone, the damaged Summit’s FSRU is no longer providing gas, resulting in a daily reduction of about 500 MMCFD. This shortage has affected CNG filling stations, industrial plants, power stations, and residential areas.

A visit to several CNG refuelling stations in Dhaka on Monday revealed long queues of vehicles waiting for gas. Even after a long wait, the pressure was low, resulting in less gas in the cylinders. At the Southern Refuelling Station in Tejgaon, vehicles were seen lined up nearly half a kilometre away, waiting for gas. Drivers reported that getting gas has been difficult for the past week, with a wait time of 3-4 hours.

Sagar Mahmud, a private car driver, said that he had to visit multiple stations before finally being able to refuel at Moghbazar by evening.

CNG station owners reported that due to the shortage, gas has been rationed for a long time.  Gas pressure at the stations has been low for the past month, and the problem has worsened over the past week. "The pressure should be 15 PSI, but it often drops to 3-4 PSI, forcing stations to shut down for 2-3 hours daily," said Abdul Aziz, a manager at a CNG station in Kallyanpur.

Nationwide disruption

According to the Rupantarita Prakritik Gas Company Limited (RPGCL), there are 606 approved CNG refuelling stations, with 525 currently operational. These stations serve 2,75,462 CNG-powered vehicles. The reduced gas supply has led to similar issues in almost all refuelling stations, as reported by the Bangladesh CNG Filling Station and Conversion Workshop Owners Association.

The association's Secretary General Farhan Noor Bhuiyan told this correspondent that he has inquired at various pumps across the country, and the pressure rarely exceeds 3-4 PSI, reaching 5 PSI at night. Except for some industrial areas, the same problem exists almost everywhere.

On June 5, Energy Secretary Nurul Alam told reporters that Summit's FSRU was severely damaged by cyclone Remal. Despite significant efforts, it has not been possible to repair it domestically.

Regarding the low gas pressure in the industry, Selim Miah, general manager in the Operation Division of Titas Gas Transmission and Distribution PLC, told The Business Post that ongoing distribution line work in many areas of Titas is causing a slight decrease in gas pressure. Additionally, they are not receiving gas as per demand.

 Increased load shedding, crisis in homes and factories

The intense heat across the country has increased electricity demand, while reduced gas supply is hindering power generation. Consequently, load shedding is causing suffering in various areas, including frequent power cuts in Dhaka’s Tejgaon Industrial Area, Moghbazar, and Rampura.

Petrobangla’s data indicates that currently, 41-42 per cent of supplied gas goes to various power plants. Before the cyclone, this amount was 1,350 MMCFD, but it is now limited to 1,050 MMCFD, while gas-based power plants require around 2,300 MMCFD.

Those involved in the power sector said that pre-existing gas shortages were already affecting power production, and the situation has worsened with now even less gas available. According to the National Load Dispatch Centre (NLDC), the estimated daytime electricity demand on Monday was 14,000 MW, while the actual generation was 13,193 MW.

Meanwhile, residents of various areas in Dhaka have reported suffering due to the gas shortage. Tania Akter, a resident of Kaderabad Housing Society in Mohammadpur, said that they do not receive gas pressure even at 6 am. For the past two days, the situation has become so bad that the stove barely lights, making it impossible to cook. "We are still paying our bills regularly but not receiving any gas," she lamented.

She added, "With no gas, we have to rely on electric stoves, which increases our electricity bills. There’s also the inconvenience of power cuts during cooking."

Due to the gas shortage, factories in Gazipur, Narayanganj, and Savar have reduced production, as reported by the Bangladesh Textile Mills Association (BTMA). At a joint press conference of BGMEA, BTMA, and BKMEA last Saturday, BTMA President Mohammad Ali Khokon said that their member factories are not getting gas, disrupting production significantly.

The BTMA called on the government to prioritise and ensure an uninterrupted gas supply to various industrial zones across the country, including Savar, Ashulia, Gazipur, Narayanganj, and Narsingdi.

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