Gas worth 1 billion dollar is being stolen in the name of system loss. If the system loss (current loss 9.82) can be halved, it is possible to save 500 million dollars annually. There is an opportunity for fewer imports.
On Wednesday (August 4) in a seminar at the International Business Forum of Bangladesh (IBFB) conference center Dr. Ijaz Hossain made such a comment. Energy expert Dr. Ijaj Hossain presented the key-note paper in the seminar on the challenge of reforming the electricity and energy sector in Bangladesh, a joint initiative of IBFB and Energy and Power. IBFB president Humayun Rasheed presided over the program and energy and power newspaper editor Mollah M. Amjad Hossain moderated the event.
Energy expert Dr. Ijaz Hossain said, I support the import of LNG, but it should be limited. There is no alternative to intensify domestic gas production and exploration activities. If we want to provide uninterrupted power supply then the import cost in this sector will stand at 24 billion dollars which is very complicated for our economy. Production is declining as our domestic gas fields are depleting. If we want to maintain the current production capacity of 2000 million cubic feet then at least 10 exploratory wells should be drilled annually. We used to produce 2800 million at one time, which has decreased due to lack of exploration activities. No country in the world can show an example of a decrease in production.
He said that in 2023, the cost of importing 20 percent of gas will be Tk. 20. In 2030, if the import is 50 percent, the price (cubic meter) will be Tk. 38. And if the import has to be 80 percent then the price will be like Tk. 55. So there is no search option. 15 million tons of coal should be imported in 2030. A decision needs to be made on indigenous coal. In addition to gas, the use of other fuels should be increased in industry.
Energy expert Dr. M. Tamim said, there is talk about the capacity provision, how much is the unused capacity provision, it should be seen, if there is any manipulation, action should be taken. How many things did the last government do, by ticking foreign currency reserves, talking about Tokai reserves in the field? Likewise, the electricity will be 23 thousand megawatts, shown by the captive. The government interfered all the time, any decision of Petrobangla was changed due to political reasons by the ministry. Petrobangla is agreeing to the proposal, but is changing due to political reasons. There is no gas, the power plant is sitting. A contract has been made to supply pressurized gas. Information terrorism is everywhere.
He said that the government has planned 9 percent GDP growth in the power sector in 20 years under the plan of improved income. Income is divided per capita, at 12,000 dollars.
We have said that import dependence should be reduced; there is scope to increase production in other fields like Chevron. Double tax in many places, due to which the price is high. Business must be saved; otherwise the foreign currency will suffer.
IBFB vice-president MS Siddiqui said, "Since the beginning of the crisis, we have been moving towards an interim arrangement, done through apportionment." If there is no competition, there is no transparency, the organization does not stand. No one buys cars from Pragati Industries except the government. Why should we buy from them at a higher price without tendering according to the law?
Shaukat Aziz Russell, president of Bangladesh Textile Mills Association, said, "The situation is complicated, it seems like a terrible thing." Max Power has been given the job at Tk. 3 more. 3 taka more means he has Tk. 3 lakh more per hour. The local company of the country has become a Singaporean company overnight; I used to give in the country, now I am delivering dollars to Singapore.
Gas supply should be ensured in industry, factories are not running properly due to lack of gas. If we don't address them, the boycott will stop. He questioned whether we are going in that direction.
Bangladesh Textile Mills Association Director Engineer Rajiv Haider said that Tk. 1.02 trillion subsidy is being given. Gas is being stolen, capacity charges are being charged and we (businessmen) have to take everything. All of a sudden the price is going up, but my contract is for a long time, we are stuck in cracked bamboo, there is no way for the exporter to make a profit. Can't tell buyer our gas prices have gone up. Got gas pressure today at factory 2.5 psi, my 2 generators are off; if 40-50 percent is unused then business will collapse. Gas prices should be reduced, the industry will not survive with these prices.
Mollah Amjad Hossain said that the debt of Bangladesh's electricity and energy sector is 5 billion dollars. Electricity prices have increased by 128 percent in the last fifteen years. The economy will be in jeopardy if the fuel liability is not met and supply is ensured. Already garment exports have declined by 6 percent which is our concern.