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Long queues in front of the compressed natural gas (CNG) filling stations amply demonstrate how severe the gas shortage is. Gas supply shortage coupled with low pressure is seriously affecting cooking in households and hampering industrial output in recent days. The crisis at many parts in the capital and its surrounding areas is so acute that a large number of people are being forced to purchase breakfast and lunch from hotels and restaurants, as they fail to cook food in gas stoves.
According to Petrobangla, the current demand of gas across the country is 3,300 million cubic feet per day (mmcfd), while the production is around 2,700 mmcfd. The Titas Gas Transmission and Distribution Company Ltd (TGTDCL) is getting lower-than-expected gas due to low production.
Several residential areas across the country face the gas crisis during winter. But since the start of the current month, each and every CNG station has been feeling the scarcity. A very low amount of gas is being distributed between 11:30pm and 8:00am for the last two weeks. The gas stations stay shut and open for only few hours a day.
When it gets really cold during the winter, the gas elements settle at the bottom of the main pipeline where there is a mixture of gas and air. More air then enters the compressor which is the reason behind the crisis.
However, the authorities believe that the gas crisis could be overcome next year when the supply would jump by 37 per cent, riding on imports of liquefied natural gas (LNG). Some 500 million cubic feet of LNG will be imported everyday at the start of next year and another 500mmcfd added by the middle of 2018.
The government believes the LNG price will be affordable and remain stable in the medium-term. It will sit with the business community and leading industrialists soon to know about their demand for the primary fuel.
Depleting gas reserves is indeed a serious concern. The country needs to undertake major exploration drives for hydrocarbon -- both offshore and onshore. And the sooner it discovers some, the better for the economy.
Dependence on coal-based plants for power generation is on the rise. Most of the coal will be imported. In that case, the shifting global coal prices can pose difficulties for Bangladesh. The country needs to import huge amounts of coal and should have a competent managing team.
There is also a question whether the country will become over-dependent on imported energy. Any instability in the supply chain and any rise in global prices may pose challenges. The price of LNG is soft globally and the government hopes that it would continue in the medium-term, helping it limit the increase in the gas price once the imported fuel starts to add to the network.
The government is also looking for investment to the tune of $30 billion in the power sector for the next five to six years. The private sector should take half of the responsibility as it has been doing for all these years.
Analysts say there should be a policy so that LNG price remains stable for at least three to five years to help businesses manage costs. Bangladesh has displayed stellar success in solar home system, but the achievement has not been replicated in solar mini-grids and rooftop systems for lack of incentives for the private sector.
The country has been dogged by serious gas shortages for a long time now that crippled a number of industries. Some CNG filling stations, facing losses, are thinking of shutting down but distribution authorities say the crisis will be over in a few days. It is not yet known whether such filling stations could be converted into LPG filling stations.
In order to avert acute gas supply shortage, there is an urgent need for shutting down of all gas-run geysers and brick kilns. Using illegal and unapproved gas connections in various industries that affect the overall gas supply should also be stopped immediately.