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Power & Energy - February 16, 2023

Power shortage to be lifted in summer

LNG coming from abroad

Mahfuja Mukul: The shortage of LNG and coal in power generation is being eliminated. This initiative has been taken to increase production by increasing fuel supply for power generation in summer. A maximum of 15,000 megawatts of electricity production has been set in summer.
The government has decided to import 3.36 million MMBTU of liquefied natural gas (LNG) from Japan. It will cost more than Tk 690.42 crore. This LNG will be imported through Petrobangla under the Department of Energy and Mineral Resources.
It has been informed by Petrobangla that LNG supply to the spot market will start from the end of this month or the beginning of next month. Apart from this, dollars have been provided from Bangladesh Bank to maintain the coal supply of Rampal and Payra power plants. In the recent summer, the energy crisis started to be discussed. After that, a meeting was held at the highest level of the government regarding the supply of fuel to the power plant. After the meeting, dollars were given to both centers for fuel supply. Rampal and Payra power plant sources say $12.5 million of the $14 million owed to Rampal and $120 million out of $151 million to Payra have been paid. At the same time, it has been agreed to provide the fuel needed by the two centers for power generation in summer.
An initiative was taken by the government to import LNG. Petrobangla has already said that 8 cargoes of LNG will be imported from the spot market. With which summer demand will be met. The Cabinet Committee on Government Procurement has already approved the procurement proposal for LNG import.
The country faced an energy crisis late last year when the government stopped importing LNG from the spot market as prices rose due to the war in Ukraine. It involves schedule load shedding in electricity. Although the government has talked about load shedding for one hour, the actual load shedding has been more than that.
Recently, the Minister of State for Power, Energy and Mineral Resources said, ‘There will be no crisis this summer. This is how fuel is being imported. He also held a meeting with the concerned officials of the power department to keep the irrigation and summer power situation normal.
Now 450 million to 480 million cubic feet per day of LNG is converted into gas and supplied. If this supply can be increased by another 400 million cubic feet per day, it is possible to increase gas supply for power generation by at least 300 million cubic feet. Every 100 MW combined cycle power plant requires 20 million cubic feet of gas for 24 hours. On that account, if 300 million cubic feet of additional gas is supplied, it is possible to generate 1500 MW of electricity per day.
Apart from this, 1744 MW power will be available from two coal-fired plants (Payra and Rampal). Out of this, 1244 MW of electricity can be obtained from Payra and at least 500 MW from Rampal. Also, Adani’s electricity is expected to come from March. 750 MW of electricity will be available from the first unit of the plant.
State Minister for Power Nasrul Hamid said, ‘Adani’s power plant will come into production in the first week of March. However, the government is yet to reach an agreement with Adani on the issue of coal. Although the government has written to Adani in this regard, the meeting has not yet taken place.

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