The government will build three new Floating Storage and Regasification Units at Payra, Mongla and Hiron Point by 2029 to secure long-term gas supplies, Energy Minister Iqbal Hassan Mahmood announced. He said LNG imports continue despite a recent fire at the Maheshkhali FSRU, while repairs, pipeline expansion and a future land-based LNG terminal are planned to stabilise the energy system.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood has said the government plans to set up three more Floating Storage and Regasification Units (FSRUs) by 2029 as part of efforts to find a lasting solution to the country’s energy crisis.
“A decision has been made to set up three more FSRUs at Payra, Mongla and Hiron Point. The process of finding investors has already begun,” the minister said while attending virtually a seminar organised by the Centre for Policy Dialogue (CPD) at BRAC Centre on Thursday.
Iqbal said gas supply across the country is currently being disrupted following a fire at the Maheshkhali FSRU, adding that engineers are working continuously to resolve the problem while operations are being maintained by synchronising boilers.
“The accident could have been much bigger. But since that did not happen, we have been spared from permanent damage. All-out efforts are being made to repair the FSRU,” he said.
He said LNG procurement has not stopped despite the damage, with sufficient cargoes being purchased so that gas supply can resume as soon as the problem is fixed.
“We ordered four cargoes of LNG just yesterday,” he said.
Outlining plans to expand the Maheshkhali FSRU pipeline network, the minister said a pipeline would be extended from Chattogram to Bakhrabad to improve gas distribution. There are also plans to establish a land-based LNG terminal through single mooring in the future, he added.
On gas exploration, Iqbal blamed 17 years of neglect in well drilling for the country’s current energy situation.
“The government is giving top priority to gas exploration through well drilling, and two new rigs have been procured to strengthen BAPEX,” he said.
Regarding the possibility of supplying gas from Bhola without constructing a pipeline, he said technical discussions have been held with Malaysia. If gas from Bhola can be transported without a pipeline, it would significantly benefit industrial factories, he added.
On the possibility of allowing private companies to import fuel oil, Iqbal said the government is considering allocating a certain percentage of imports to private firms, but no policy has yet been finalised.
He dismissed various reports and rumours on the matter as baseless.
The minister also blamed the rapid expansion of battery-run rickshaws for putting enormous pressure on the national power grid.
“Earlier, peak hours were from 7 pm to midnight, but now we are seeing power demand of 18,000 megawatts even after midnight. This pressure is being created because of battery charging for these rickshaws,” he said.
Iqbal said the government is finding it increasingly difficult to control the vehicles because many of them charge their batteries using illegal electricity connections.
“Since they are in the majority, power department personnel are being beaten up when they try to cut these lines. It is becoming difficult to manage them,” he said.
The minister said the government is making all-out efforts to overcome the power crisis and is working seriously to resolve the situation, with Prime Minister Tarique Rahman personally monitoring the matter.
He added that the prime minister would present the government’s full energy policy in detail to the nation in parliament.