energy
Visit by Qatar's Emir to strengthen cooperation in manpower, energy, and investment: Foreign Ministry
Bangladesh and Qatar want to expand the existing ties with broader cooperation in the areas of manpower, energy, trade and investment following the planned visit of Qatar’s Emir Sheikh Tamim bin Hamad Al Thani to Bangladesh next month.
The two countries are in discussion to finalise nearly a dozen of cooperation documents which will be signed during the visit, said a source at the Ministry of Foreign Affairs.
The two-day visit is likely to take place on April 21-22, he said.
The two sides are now working on the MoUs and agreements that will be signed after the Emir’s meeting with Prime Minister Sheikh Hasina.
Cease-fire talks with Israel and Hamas are expected to resume Sunday in Qatar
The Ministry of Foreign Affairs has already held an inter-ministerial meeting to discuss various aspects of the visit.
In March last year, Prime Minister Sheikh Hasina had a meeting with the Emir of Qatar Sheikh Tamim bin Hamad Al Thani on the sidelines of the United Nations Conference on Least Developed Countries (LDC5) in Doha.
She sought increased energy, particularly LNG, from Qatar to meet the energy demands.
The State of Qatar recognised Bangladesh as a sovereign State on March 4, 1974 following the 2nd OIC Summit held in February 1974.
Qatar assures support for Bangladesh's media sector development
Bangladesh opened its diplomatic mission in Doha on June 25, 1975. The State of Qatar reciprocated by opening its diplomatic mission in Dhaka in 1982.
Bilateral relations between Bangladesh and Qatar are based on mutual respect, shared values, common religious ground, shared culture, and tradition.
People-to-people contacts bolstered by more than four hundred thousand Bangladeshi workers who are highly appreciated as disciplined and hardworking is one of the dominant features of bilateral relations, according to the MoFA.
Bangladesh and Qatar consider each other as brotherly countries and important development partners in materialising Bangladesh’s Vision 2041 and Qatar’s vision 2030.
Read more: Bangladesh ambassador accredited to Hungary presents credentials to Hungarian president
Walton brings country’s first 6-star energy rating AC
Bangladeshi electronics giant ‘Walton’ has released BSTI’s 6-star energy rating certified split type air conditioner in the domestic market. In Bangladesh, only Walton brand ACs have achieved the BSTI’s 6-Star and 5.5 Star energy rating certificates.
It is the most energy-efficient AC in South Asian countries, according to a media statement.
Only Walton AC has a 5-inch TFT color display that shows various important information including running data, performance, timing, and indoor and outdoor temperature of AC.
Walton AC can be controlled from anywhere through IoT smart control system using smart apps solution function and electricity bills are also calculated easily using the apps. Beside any defects of AC can be diagnosed through smart diagnosis system, reads the release.
Sylhet’s Laki Begum becomes millionaire buying Walton fridge
In this summer, customers are offered ‘nonstop millionaire’ on the purchase of Walton AC from any Walton Plaza, distributor outlet or online sales platform ‘E- plaza’ across the country under the Walton’s digital campaign Season-20.
Besides, crores of taka sure cashback are also available. Customers will enjoy the benefits of season-20 from March 1 to till further announcement.
Under the Walton’s AC exchange offer, customers can purchase Walton’s brand new model of split ACs with maximum Tk 23,000 discounts in exchange of their old or used ACs of any brands.
Walton AC’s Chief Business Officer (CBO) Tanvir Rahman said, “Walton is manufacturing and marketing high standard ACs with world’s largest numbers of features. In continuation of this service, Walton has released the country’s first BSTI 6-star energy rating and South Asia’s most energy efficient AC for customers in the market. The price of this new model of AC is set at Tk 65,000.”
Demand for Walton TVs constantly going up in European market
He added that customers can check the energy efficiency of Walton AC by contacting Walton’s nearest sales point, service center or call center at 16267.
Walton AC’s customers are getting one year replacement facility, 10-year guaranty on compressor, 3-year warranty on spare parts and 1-year free after sales service.
Walton provides swift and fast after-sales service to AC customers through 82 service points across the country under the ISO Certified Service Management System along with 300 service partners.
The skilled and experienced engineers and technicians of Walton are providing free service to AC buyers in every 100 days, added the release.
Read more: Air Conditioner Brands, Buyer Guide, Models, with Price in Bangladesh
US to work with Bangladesh to ‘enhance economic investment’ in next 50 years and beyond
The United States has said it looks forward to working with Bangladesh to "enhance economic investment" over the next 50 years and beyond.
The visiting US delegation met Salman F Rahman, Private Industry and Investment Adviser to PM Sheikh Hasina, to hear how government and private companies are collaborating.
Eileen Laubacher, Special Assistant to the President and Senior Director for South Asia, US National Security Council (NSC); Michael Schiffer, USAID Assistant Administrator, Bureau for Asia; and Afreen Akhter, US Department of State Deputy Assistant Secretary for South and Central Asia, are on a three-day visit to Bangladesh.
For over 50 years, the US has partnered with the government and the people of Bangladesh, providing over $8 billion to tackle issues like public health, education, energy, environment, food security, natural disasters, and more.
Read: Want to create a new chapter in our relations: Foreign Minister says after meeting with US delegation
The United States is one of the largest investors in Bangladesh and its largest single country export market, said the US Embassy in Dhaka.
"Our leadership from Washington D.C. joined local economic experts to discuss a range of issues impacting the bilateral trade relationship," said the US Embassy.
The United States "stands ready" to help Bangladesh create a business climate that attracts more investment from the US.
The delegation discussed ways to improve the business environment, making investment in Bangladesh more attractive to American companies.
Read: Bangladesh-US relations will be stronger based on environment, climate actions: Environment Minister
The three officials, according to the US side, are visiting Bangladesh to discuss with the government of Bangladesh ways to "strengthen diplomatic ties, address challenges, and promote a shared vision for the advancement of mutual interests in the Indo-Pacific region."
They also met Foreign Minister Dr Hasan Mahmud, Foreign Secretary Masud Bin Momen, civil society representatives, labour leaders, youth activists and those engaged in developing a free and uncensored media.
"We discussed with the Foreign Minister how our two countries can work on mutual interests, including economic development, security, refugees, climate, labor, and trade," said the US Embassy in a separate message after the meeting.
Bangladesh is an important partner in the Indo-Pacific region, it said.
Read more: US Deputy Assistant Secretary meets Bangladeshi civil society members including Zillur and Adilur
Industries in Dhaka, Gazipur, N'ganj still reeling from acute gas crisis despite Titas claims of improvement
Industries in Dhaka, Gazipur and Narayanganj continue to be afflicted by an acute gas crisis, even though Titas Gas Transmission and Distribution Company, the state-owned distributor of natural gas, claims the situation has improved.
As reported in the media previously, garments and textiles firms in the industrial belt of these central districts have been suffering from an acute gas crisis for the last few months.
“The factories are in dire straits,” a top top-level manager of a group of textile factories in Gazipur told UNB.
Most of the industries in Gazipur do not get adequate supply of gas during their operational periods, the most crucial hours during which their machines need to be running. Inadequate supply manifests in the form of low pressure gas flow, he added.
FBCCI urges for strengthening oil, gas exploration to ensure uninterrupted supply to industries
Low pressure gas flow is akin to low voltage electricity - many appliances won't run, even though an electric charge is present.
The textiles group official said that due to the lack of gas supply, production in various factories is being disrupted and they are on the verge of shutting down.
In the ongoing gas crisis, important machines like generators and broilers in the dyeing section of the factories are not being run. This has been posing a great risk for the industries to continue their production and pushing them towards huge financial losses.
“Many industries would not be able to pay the salaries and festival bonuses during the coming Eid if the situation does not improve,” said an industry owner.
Industry insiders said there are more than 300 factories in Kaliakoir and other areas in Gazipur.
All these industries have been suffering from the nagging gas crisis and some of them have already suspended their productions.
100% percent prepaid gas meters within four years: Nasrul Hamid
Each of the industries has more than 1000 workers. But following the gas crisis, they have to reduce their production target while some of them use CNG at a higher cost to continue their operations.
A similar situation is prevailing in the Mirpur, Tongi and Narayanganj areas, said Mohammad Hatem, Executive President, of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
He said that despite increasing the price, the government is not able to provide adequate gas.
“Production in garment factories has come down to half due to non-availability of gas. Many buyers meanwhile are pushing for air shipments as the normal schedule for shipments has failed in keeping the commitment,” he said adding, some buyers are asking for discounts on the rates.
More gas likely to be found in Sylhet’s Kailashtila field: Nasrul
“Some customers are upset and cancel the order in such a situation,” he noted.
Recently the Bangladesh Chamber of Industries (BCI) has also alleged that no industry in the country is able to run at its full potential due to the gas crisis.
A Bangladesh Chamber Of Industries delegation, led by its president Anwar-ul Alam Chowdhury (Parvez), raised the allegation when it met Industries Minister Nurul Majid Mahmud Humayun at his ministry office.
The lone chamber for industries said the prices of electricity and gas were increased on the pretext of increasing prices on the international market in the hope that the government would ensure their continuous supply.
“But despite the declining trend of energy prices in the international market, it is being heard that the prices of electricity and gas will be increased again,” BCI said in a statement.
Read more: Govt okays import of LNG cargo from Singaporean firm to meet gas demand
It demands for a sustainable solution to the problem. “If a long term plan is given to the industrial sector in terms of power and gas supply, it can move forward accordingly."
Titas Gas general manager Arpana Islam admitted the gas crisis. But she claimed that the situation has improved to some extent recently following measures to increase the gas supply.
She advised to talk to Petrobangla when asked whether there is any possibility in near future to further improve the gas supply situation.
Petrobangla official statistics reveal that in the last one month the total gas supply across the country has increased by just 100 million cubic feet per day (MMCFD) or so, leaving a deficit between production and supply of about 1500 mmcfd.
The Petrobangla data shows that on February 16 it produced 2671 mmcfd gas including its import from abroad against a demand for more than 4000 mmcfd.
The TItas Gas data also shows that about 30 power plants now remained out of operation due to gas shortage.
Read more: BNP denounces move to double monthly rent for prepaid gas meters
Action against officials of Petrobangla companies if fail to achieve target: Nasrul
Bangladesh's State Minister for Power, Energy and Mineral Resource Nasrul Hamid has said that each of the companies of the Petrobangla will be given target to drill wells in the gas fields for hydrocarbon exploration and if they fail, the officials concerned will be removed from their posts.
“Nobody will be speared and no persuasion will be accepted against any failure”, he told a seminar titled: “Gas Demand-Supply Scenario; Scope of Seismic Survey and Enhancement of Drilling Activities to Expedite Hydrocarbon Production” organised by Petrobangla at its auditorium in the city on Thursday (February 15, 2024).
Expressing frustration over the activities of the Petrobangla, he said that there is huge deficiency in the organisation and its subordinate bodies to work as a team.
“They don’t work in a coordinated manner. As a result, sometimes gas is found in a well, but processing plant remains unprepared to supply the gas to the national grid,” he said.
Read: Dhaka’s air quality still 'unhealthy', 2nd most polluted in the world this morning
“Sometimes it takes 4 years to get gas supply from a well to the national grid,” he added.
He said Bangladesh Power Development Board (BPDB) and other entities in power sector have been successful in achieving the goal of 100 percent electricity access as they worked as a team.
The seminar, with Petrobangla chairman Zanendra Nath Sarker in the chair, was also addressed by Energy Secretary Md Nurul Alam.
Bakhrabad Gas Distribution Company’s Managing Director Anwarul Islam and Petrobangla’s general manager Meherul Hasan made presentation on the topic of the seminar.
Nasrul Hamid said the Petrobangla planned to drill 48 wells to produce 500 million cubic feet per day (mmcfd) while the country’s demand will go up by 2000 mmcfd.
Read: New executive committee of BSFA pays homage to Bangabandhu
“We’re all looking at Petrobangla to see effective results of its plan…, there is huge prospects in the gas sector,” he added.
He said the country has many inefficient captive power plants which efficiency is 20 percent when some new power plants installed with 62 percent efficiency.
“If we can divert gas to those efficient new power plants, power production cost will come down by 70 percent,” he noted.
In the presentation the Petrobangla officials showed that it has planned to drill 100 wells across the country from which 1500 mmcfd gas will be produced by 2027 when gas demand will go up to 6000 mmcfd.
Read more: Nasrul Hamid seeks ADB's help to create regional power market
Govt in dilemma over raising power tariff or floating more bonds to cut losses
The government of Bangladesh is caught up in a dilemma in choosing the right option to reduce the gap between the cost of power production and revenues generated from sales.
“Top policymakers are divided over whether the government should go for increasing the power tariff further or issuing more bonds through the banking system,” said a top official at the state-owned Bangladesh Power Development Board (BPDB).
He said if the government wants to raise the power tariff, either it has to do it before Ramadan or after Ramadan - these are the questions almost every day that are being discussed at the policy level.
They are also analysing the impacts of floating more bonds to reduce the burden of soaring losses on the part of BPDB, he added.
Read: Retail power tariff hiked 5% to Tk0.19 per unit for lifeline consumers, Tk0.36 on average for others
According to official sources, currently, the production of each unit of electricity costs about Tk 12 while it sells at a rate of about Tk 6.7.
It means the government has to bear the brunt of Tk 5.3 per unit, a top BPDB official told UNB.
The BPDB’s Annual Report 2022-23 shows, the BPDB, as a single buyer, generated 87,024 million kilowatt hours of electricity in 2022-23 fiscal at a total cost of TK 98,646.42 crore.
Its per unit production cost was at Tk 11.33 while it was selling electricity at Tk 6.7 per unit incurring a loss of about Tk 4.63 per unit.
The bulk tariff was last raised by 8.06 percent to Tk 6.70 from Tk 6.20 per unit on January 31 with effect from February 2023.
Read more: Over 10,000MW power in 29 projects in the pipeline, despite yawning overcapacity
Against this, its revenues were Tk 50,858.25 crore, incurring a loss of Tk 47,788.17 crore, showed the BPDB Annual Report.
With this huge loss, the government has been in great trouble as it has to purchase electricity worth Tk 82,778.25 from private sector power producers while it generates electricity worth Tk 13,306.62 crore from its own generation plants.
The annual report also shows that the BPDB’s average per unit production cost from its own plants is Tk 7.63, while it is Tk 14.62 at the independent power producers or IPPs (private sector), at rental plants Tk 12.53, at public plants Tk 6.85 and imported power from India at Tk 8.77.
The government purchases electricity from the private sector and India in dollars.
Read more: Power generation capacity increased by almost 20% to cross 30,000MW in 2023
According to official sources, the government's cumulative outstanding bills have now jumped to about $5 billion, of which the backlog amount in the power sector is about $4 billion (about Tk 43,093 crore), and the remaining $1 billion is in the energy sector.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid also admitted the severity of the crisis.
“Actually the crisis is not of local currency. Somehow we can manage it. But the main crisis is the dollar. We’re not getting dollars from Bangladesh Bank as per our needs,” he recently told UNB.
He noted that the power and energy sectors need at least $1 billion a month to meet payment obligations.
Read: Govt to raise retail power tariff this month
In such a situation, the government recently introduced a number of bonds through Bangladesh Bank to facilitate the BPDB to clear some dues.
“Initially, we have floated bonds worth Tk 5000 crore and it may go up to Tk 12,000 crore,” said a BPDB official on condition of anonymity, adding that it will not be enough to cover the losses, although the government is providing subsidies on a regular basis.
“That’s why the government will have to go for raising power tariff further or introducing more bonds,” he said adding, if more bonds are floated, it may squeeze the private sector’s credit from the banking sector.
But a final decision on what they would do still remains pending.
Read more: Power, energy sectors are saddled with $5 billion outstanding payment amid dollar crisis: Sources
Committed to supporting Bangladesh's economic goals, Biden writes to PM Hasina
US President Joe Biden has written to Prime Minister Sheikh Hasina expressing his willingness to work together to achieve Bangladesh's economic goals.
He also expressed willingness to partnering with Bangladesh on their shared vision for a free and open Indo-Pacific.
"The United States is committed to supporting Bangladesh's ambitious economic goals and partnering with Bangladesh on our shared vision for a free and open Indo-Pacific," President Biden said in his letter seen by UNB.
Entire world willing to work with Bangladesh as PM Hasina placed it in dignified position: FM Hasan
As the two countries embark on the next chapter of the U.S.-Bangladesh partnership, the US President said he wants to convey the sincere desire of his Administration to continue their work together on regional and global security, economic development, climate change and energy, global health, humanitarian support, especially for Rohingya refugees, and more.
"We have a long and successful history of working together to solve problems, and our strong people-to-people ties are the foundation of this relationship," the US President wrote to PM Sheikh Hasina.
Hungary, Kyrgyzstan greet PM Sheikh Hasina on her re-election
The Embassy of the United States of America shared the letter with the Ministry of Foreign Affairs recently.
Special bonds issued to pvt banks to clear liabilities with power plants
In a significant move to stabilize its power sector, the Bangladesh government has secured Tk 2,062 crore through the issuance of special bonds. This initiative, aimed at clearing outstanding liabilities to private power plants, involves a collaboration with two prominent private banks: City Bank and Pubali Bank.
A comprehensive agreement was inked on Wednesday at the Secretariat, marking a critical step in addressing the financial challenges faced by the power sector. As per this agreement, the government will issue bonds worth Tk 1,985 crore to City Bank and Tk 77.50 crore to Pubali Bank, as confirmed by the Ministry of Finance.
Sources reveal that the government’s inability to disburse subsidy funds had left private power plants struggling to meet their financial obligations, leading some to the brink of insolvency.
Read: Bangladesh's imports drop over 18% in first half of FY2023-24
To counter this crisis, the government’s issuance of special bonds comes with an 8 percent coupon rate, mirroring the repo rate set by Bangladesh Bank. Notably, any future fluctuations in the repo rate will correspondingly adjust the bond interest rate.
At the term’s end, the government will settle the bank dues along with interest, subsequently reclaiming these bonds. Unlike typical 15–20 year bonds, these special bonds have a maximum tenure of 10 years, a move tailored to the urgent needs of the power sector.
Key players in the power sector, including Summit Power, United Power, Confidence Power, Baraka, Kushiara, Doreen, and Akron Power, are among the beneficiaries of this initiative. The Finance Division also disclosed plans for phased agreements with other banks, including BRAC Bank and Bank Asia, to further address the sector’s liabilities.
Read: To ensure good governance in banks, chairman should be from independent directors: Dr Atiur
Reflecting on the agreement’s significance, managing directors of several banks expressed optimism. While banks can leverage these bonds with Bangladesh Bank, it provides the government with crucial financial breathing space.
This strategic financial maneuver stands as a testament to the government’s commitment to ensuring the stability and sustainability of Bangladesh’s power sector.
Gas supply to Ctg, elsewhere starts improving as LNG terminal resumes production
Gas supply to Chattagram and elsewhere has started to improve after a floating LNG terminal in Moheshkhali resumed production after its 45-day scheduled maintenance programme.
“Excelerate Energy’s FSRU started production after scheduled maintenance today. Now it has been supplying 230 million cubic feet of gas per day (mmcfd) and hopefully the supply will reach 500 mmcfd soon,” said a top official of the Rupantarita Prakritik Gas Company Limited (RPGCL).
The RPGCL, a subsidiary of state-owned Petrobangla, has been responsible to import LNG from abroad and receive re-gasification service from the existing two LNG terminals in Moheshkhali, one set up by Summit Group and another by US-based Excelerate Energy.
Each LNG terminal has a capacity to supply 500 mmcfd gas to the national gas network from which a major portion is supplied to Chattagram .
Read: Energy Division regrets inconvenience from gas crisis in Chattagram, elsewhere
The Excelerate Energy’s FSRU went on a 45-day maintenance programme suspending supply of gas to the national gas grid while the Summit’s FSRU experienced a technical fault halting gas supply to the national gas network, leading to a severe gas crisis in Chattagram and elsewhere.
Many areas in Dhaka, Narayanganj and Gazipur experienced extreme gas crises or low pressure problems.
The RPGCL official, however, informed that Summit’s FSRU also resumed production to a very low scale and it is providing a supply of 130 mmcfd against its capacity of 500 mmcfd.
He noted that the gas shortage problem is unlikely to be fully resolved as the Summit’s FSRU also has a schedule to start maintenance programme within 3-4 days.
Read: Uninterrupted gas supply by 2026 : Nasrul Hamid outlines energy plans
“We think the situation will improve to some extent, but not fully”, he told UNB.
The Energy Division on Friday expressed regrets for the inconvenience caused to consumers over the gas crisis in Chattogram and elsewhere in the country due to the suspension of the LNG supply from FSRU in Moheshkhali following a technical fault there.
In a press release, the Energy and Mineral Resources Division said that due to a technical fault at a Moheshkhali LNG FSRU, gas supply to Chattogram and other areas of the country remained suspended since early morning on Friday.
Read more: Acute gas crisis hits Chattogram city residents hard
Uninterrupted gas supply by 2026 : Nasrul Hamid outlines energy plans
Bangladesh’s State Minister for Power, Energy and Mineral Resources, Nasrul Hamid, announced a commitment to ensuring uninterrupted gas supply to consumers by 2026. This statement came during a discussion with reporters on Tuesday (January 16, 2024) about the power and energy sector's advancements, potential, and obstacles.
Having achieved the milestone of 100 percent electricity coverage, Hamid noted the government's focus is now on providing continuous power and gas supply by 2026. He highlighted that Bangladesh currently imports 20 percent of its gas, utilizing 80 percent from domestic sources, with no immediate plans to increase imports.
Fashion Design Council of Bangladesh unveils "Khadi- the future fabric show" at Khadi Fest 2024
The exploration of gas in deep sea areas could significantly bolster the energy division, Hamid mentioned. He acknowledged the existing challenges, particularly the ongoing gas shortage, attributing it to reliance on a Floating Storage and Regasification Unit (FSRU). Hamid assured that the current gas crisis is temporary, partly due to reduced pressure during severe winters.
Plans are underway to operationalize the FSRU soon, which is expected to add 400 mmcf of gas to the system. Additionally, another FSRU is set for renovation, with an aim to maintain uninterrupted gas supply starting next March. The minister revealed plans to incorporate two more FSRUs around 2026 and 2027 to meet the anticipated gas demand of 6,000 MMCF in 2027.
Tobacco use declines despite industry efforts to jeopardize progress: WHO
Hamid expressed optimism about domestic gas exploration, noting that most drilled wells have discovered gas. He emphasized the Bhola to Barishal gas pipeline as a top priority, with activities commencing this year. Gas from Bhola, currently supplied in CNG form, is expected to increase and be fully operational by mid-March next year.
The Bibiyana gas field also holds promise, with the minister expressing confidence about significant gas findings there. The immediate goal is to drill around 46 wells by mid-2025, followed by an additional 100 wells. This exploration is projected to add 500 mmcf of gas from domestic sources between 2024 and 2025.
Dhaka Elevated Expressway to be completed in 2024, says Obaidul Quader
Hamid concluded with a hopeful note on the Bibiyana field, which potentially harbors about 1.6 tcf of gas, further enhancing the nation's energy security and self-reliance.