Tawfiq-e-Elahi Chowdhury, adviser to the prime minister on power and energy, on Sunday shrugged off proposals of importing LNG from the spot market made by the business community to mitigate the ongoing energy crisis gripping the country's industries.
He also said that if Bangladesh imported 200 MMcf LNG for the next six months at the current spot market rate, it will cost about $1.2 billion more than the long-term contract (LTC), and that the government also had a scarcity of dollars right now.
He was speaking at the event “Mitigation of the Impact of Energy Crisis on the Industrial Sector” organized by the Bangladesh Chamber of Industries (BCI) at a hotel in the capital.
“No one knows in which direction the global situation will go in the coming months. Everyone should be prepared,” Elahi said.
The energy adviser also said that they have already come to a decision of shipping around 80 million cubic feet of gas, stranded at Bhola gas field, to the national grid within the next 2-3 months.
Tawfiq-e-Elahi Chowdhury, adviser to the prime minister on power and energy CourtesyHe also said that some coal-based power plants will also come into production by the end of this year.
“Then we can reduce the gas supply for electricity generation and give some gas for industrial use,” he added.
Responding to the proposal of businesses to carry gas from CNG stations, he said they can do it if possible.
Moreover, if the situation did not improve after this, he suggested refraining from using any electricity during daytime if necessary.
“Is it possible to increase the supply by reducing the demand? There were also days when we stayed up at night with lights on. I did all the work in daylight. Why should we be so comfortable? (Using electricity) has to be reduced a little,” he added.
External financing
He also said that financing from some countries will be sought.
“I have received offers to buy LNG at very low prices from several places, $10-$12 per mmbtu. I don't know how they will provide, but we have to be patient,” he added, saying that as winter was coming, demand may decrease.
“We will take a crash program to generate 1,000MW solar power which may reduce pressure on gas,” he added.
In his welcome speech, Anwar Ul Alam Chowdhury (Parvez), president of BCI, said that the country was going through an economic crisis.
Anwar Ul Alam Chowdhury (Parvez), president of Bangladesh Chamber of Industries (BCI)The prime minister saved businesses with the stimulus package during the (Covid-19) pandemic, he further said, adding that just after the recovery of the pandemic, the economy was struggling due to the Ukraine-Russia war.
The forex reserve is declining, the number of import LC openings as well. Moreover, inflation in the developed countries also hit record highs along with fuel and energy crises, he added.
“In this regard, we have to explore new gas reserves and also need government support,” he added.
At the event, former Buet professor Ijaz Hossain gave the keynote presentation.
Binayak Sen, director general of Bangladesh Institute of Development Studies (BIDS) said that food and energy security were basic securities of the country.
“If these two securities are not addressed well, we will be in crisis. We can define short term solutions like buying LNG from the spot market. However, the (Russia-Ukraine) war will not end soon, Everyone has to take action accordingly,” he added.
AK Azad, former BCI and FBCCI president, and also managing director of Ha-Meem Group, said that there was a 38% export growth but now 7.52% decline.
“We can start the night shift in the factories even if we are given 5% gas from other lines. Otherwise, entrepreneurs will suffer and also the workers,” he added.
BKMEA Vice-President Akhter Hossain Apurba demanded the removal of 34% VAT on furnace oil to save this sector.
FICCI vice-president Swapna Bhowmik said that they visited 27 RMG factories and each factory is suffering due to energy crises.
“As the price of everything is increasing, it will not be possible to save this sector if we don't get enough boost and confidence,” she added.
BTMA president Mohammad Ali Khokon said, if the government gave them $200,000 worth of gas, they would be able to bring $4.8 million worth of export earnings.
FBCCI president Md Jashim Uddin said that 2020's Bangladesh and the current one were not the same.
FBCCI president Md Jashim Uddin"Our per capita income has increased. But we are now in hot water due to the energy crisis. If the situation doesn't improve, the businesses along with banks will face a severe crisis."
He also said that to realize the dream Bangladesh of 2041, $300 billion worth export earnings will be needed.
“If we are in this situation, how can we survive or fulfill the prime minister's goal?” he asked.
