Gas system losses cost $1 b a year

Special Correspondent: Annual gas system losses in Bangladesh amount to around $1 billion, according to the country’s leading experts.
They explained that a significant quantity of gas is wasted in cities and other areas across the country each year due to faults in transmission lines. These losses are accounted for as system losses at the end of the year. According to them, the current import price of LNG is $15 per MMBtu.
Professor DrIjaz Hossain, a former lecturer at BUET, stated that the annual system loss, amounting to 5%, costs approximately $1 billion. He emphasised the need for effective measures to reduce gas system losses and expressed concern that if gas prices increase in the future, the amount of loss will also rise.
In his presentation, Dr Hossain mentioned that fuel consumption has not increased due to the ongoing crisis faced by industrialists. About 60% of the country’s natural gas is used for power generation, with 18% going to captive power. Residential use accounts for 11%. Of the 29 gas fields in the country, 20 are currently operational.
“Everything in the energy sector has become import-dependent. Currently, domestic gas production is 2,202 mmcfd. Over the past five years, we have increased gas consumption in many areas, leading to a supply crisis,” he said.
The presentation was delivered at a seminar titled ‘Challenges in Reform in the Energy and Power Sector’, organised by the International Business Forum of Bangladesh (IBFB). The seminar was held at the IBFB office in Dhaka on Wednesday.
During the seminar, experts highlighted various issues related to the challenges and financial losses faced by the gas sector.
In his welcome speech, Humayun Rashid, President of IBFB and Managing Director of Energypac, said, “IBFB consistently advocates on issues related to the interests of businesses and entrepreneurs in the country.” Energy expert and BUET professor Dr M. Tamim, speaking as a special guest, said, “During the previous government, there was a significant amount of misinformation in all sectors, particularly in the energy sector.”
He claimed that certain government policies have caused severe damage to the energy sector.
“The target was to increase production capacity to 24,000 megawatts by 2021 to ensure electricity access for all. However, the actual production has fallen short, despite claims of 100% on paper. The government has benefitted from this sector, which is why the energy sector has been left in the dark,” he said.
Prof Tamim added, “Fuel and electricity are technical matters that should not be determined politically, which unfortunately has happened in our country. Government institutions in the energy and power sector have been unable to develop due to political obstacles.”
President of the Bangladesh Textile Mills Association (BTMA), Shaukat Aziz Russell, commented, “Despite the Ministry of Energy being under the office of the Head of Government, we have seen how energy contracts have been awarded without competition over the last decade.”
He also remarked, “Our country’s company transformed into a Singaporean company overnight. When the country’s reserves were in crisis, we sent dollars to Singapore.”
Rajeev Haider, Director of BTMA, stated, “In recent years, gas prices in the industry have risen by over 200%. Currently, gas is being bought at Tk 31.5 per unit. Prices are being increased without prior notice,” he regretted.
Bangladesh Solar and Renewable Energy Association (BSREA) President Nurul Akhtar, IBFB Founder President Mahmudul Islam Chowdhury, and Vice President MS Siddiqui also spoke at the seminar, which was moderated by MollaAmzad, editor of Energy & Power.