Summit LNG terminal damaged, sufferings feared

  • Serajul Islam Siraj, Special Correspondent, Barta24.com
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Photo: Collected

Photo: Collected

Summit Group's FSRU (Floating Storage Regasification Unit) damaged by Cyclone Remal is yet to be repaired. Will know within days whether repair will not be possible on spot or will have to be taken to Dock (Singapore).

Energy and Mineral Resources Division Secretary Nurul Alam confirmed this information to Barta24.com in response to a question. The Summit Group and the Division of Energy and Mineral Resources have been keeping a tight lid on the matter since the beginning. Many people do not see any reason to cover up the natural disaster.

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Sources in the Division of Energy and Mineral Resources said that the FSRU pipe was damaged after colliding with a pontoon. Gas supply from FSRU has been stopped since the incident.

Sources at the LPG Importer Transformed Natural Gas Company (RPGCL) said a cargo brought in at a low price had to be returned. After that, the price of LNG increased in the international market. But luckily we didn't have to pay the fine.

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Secretary of Energy and Mineral Resources Division Nurul Alam said, we can be sure within days whether it will be possible to repair at the spot or it will have to be taken to the dock. Already 3 cargoes have to be returned which were supposed to supply LNG to Bangladesh. Measures have been taken to prevent such incidents from happening in the future. Especially in areas like Florida where super cyclones occur, they are asked to follow what measures they take.

Summit Group's floating terminal can supply 500 million gas per day. As the gas supply has stopped, it has started to affect the whole country. It will take about 1 to 1.5 months if you have to take it to the dock (Singapore) for repair. Demand for electricity has now reached its peak due to extreme heat. At this point gas supply has become a cause for concern. Shortage in power generation may occur.

On the other hand, Bibiana, the country's largest gas field, is regularly maintained due to low demand during Eid. The gas field has a daily production capacity of 1200 million cubic feet of gas which is more than half of the total production capacity of Bangladesh. Last Eid was also maintained at a partial rate. 623 million cubic feet was supplied on Eid day (April 11). This time too, the field is preparing for maintenance during Eid. Petrobangla sources said that Chevron Bangladesh, which owns the field, has already submitted a proposal. Chevron Bangladesh has proposed to maintain a partial production shutdown from June 16 to 21. On the other hand, they have asked for permission to completely shut down Jalalabad gas field on June 18 and 19.

On the one hand, Summit's LNG terminal is closed, on the other hand, the largest gas field Bibiana has reduced gas supply, and Jalalabad remains closed. It is feared that many complications may arise. However, due to the closure of industries during Eid, the demand for gas decreases a lot.

A total of 29 gas fields have been discovered in Bangladesh. 2032 million cubic feet of gas is being extracted daily (June 3, 2024) from 114 wells in 20 gas fields. At one time up to 2800 million Cft gas was extracted. Due to dwindling reserves, production has decreased in many wells. 5 gas fields (Rupganj, Kamta, Feni, Chatak and Sangu) have been declared abandoned. 3 gas fields (Qutubdia, Bhola and Jokiganj) are closed due to lack of gas transmission system.

On the other hand, gas is imported from abroad through 2 floating LNG terminals to overcome the shortfall in demand. It has a total supply capacity of 1100 million Cft. Still there is a deficit of about one and a half thousand million Cft.