Energy adviser blames section of politicians, businessmen for crisis in gas sector

Adviser to the Ministry of Power, Energy and Mineral Resources Muhammad Fouzul Kabir Khan today said a section of politicians and their allied businessmen have created the ongoing crisis in the gas sector.

"The crisis in the gas sector did not happen overnight or by itself. A group of politicians and their business associates have brought us to today's situation," he said.

He made the remarks while speaking at a discussion titled 'LPG in Bangladesh: Economy, Environment and Safety' held at the Hotel Sonargaon in Dhaka.

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Fouzul Kabir said unnecessary capacity was built in power generation without considering the required gas supply to support it.

"In the private sector, many industries were promised gas connections. Even knowing there was no gas, lines were given, unjustly, through corruption. As a result, we are now facing this crisis," he added.

He pointed out the difference between gas and electricity, saying, "In electricity, you can shut off supply in one area and redirect it elsewhere. But that cannot be done with gas. It's first come, first served, whoever comes first, gets it."

The adviser said the government is making every effort to overcome the shortage.

"We are conducting two exercises, importing more LNG to maintain supply and expanding exploration through Bapex onshore," he said.

"Every year, around 200 mmcfd of gas is depleted, while we have managed to add only about 70 mmcfd. Still, we are hopeful of discovering more gas, particularly in Bhola," he added.

The adviser also said that the country is compelled to increase LNG imports; otherwise, industries, factories, and exports would come to a halt.

However, he noted that there are limitations in LNG imports.

"Last year, we imported 108 LNG cargoes, and our maximum capacity is only 115," he said.

Highlighting LPG as a potential solution, he said, "The advantage of LPG is that it is relatively easy to import. But the major problem lies in its price, it needs to be reduced. The entire LPG sector is controlled by private companies, and prices remain too high."

"The price of a 12-kg cylinder still exceeds Tk 1,200, sometimes rising to Tk 1,400 or Tk 1,500. It should be below Tk 1,000," he said.

The adviser also stressed the need to reduce costs to promote LPG use in industries.