Gas crisis due to FSRU fire, no option but to wait: Energy Minister

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku has said there is currently no option but to wait until the floating LNG terminal (FSRU) is operational again, as a fire has disrupted gas supply. Engineers are working to repair the FSRU, and the next steps will be taken according to their schedule.

Speaking virtually at an event organised by the Centre for Policy Dialogue (CPD) on Thursday, August 13, the minister said, "During this crisis, there is nothing I can do right now. Without the FSRU, we cannot unload LNG. There is no alternative but to wait. Engineers are working on the FSRU." He said necessary equipment for repairs arrived from abroad and was delivered to the site within 24 hours. The repair work is the primary responsibility of the American company that owns the FSRU, while ministry officials are also working round the clock.

The minister said LNG purchases have not stopped even though the FSRU is out of order. "Four LNG cargoes were purchased the day before yesterday. Once the FSRU is operational, if we can quickly unload these cargoes, the gas crisis will ease significantly." Efforts are also being made to manage electricity with less load shedding to keep gas supply to industries normal.

To address the energy crisis in the long term, initiatives have been taken to install three more floating LNG terminals by 2029. One terminal has already been awarded, and the remaining two are expected to be awarded within the next two months. As all existing FSRUs are in the Chattogram region, plans are underway to set up new terminals in Khulna and the southern region, with surveys being conducted at Payra, Mongla and Hiron Point. Foreign investors, including a large US delegation, have also shown interest in investing in this sector.

The minister noted that increasing LNG import capacity alone is not enough; pipeline infrastructure capacity must also be enhanced to distribute imported gas to different regions. There is a capacity shortfall in the Chattogram to Bakhrabad gas transmission line, so plans are being made to build a new pipeline. Talks are also underway with Malaysia over bringing gas from Bhola.

Criticising the previous Awami League government over the energy crisis, Iqbal Hasan Mahmud Tuku said insufficient importance was given to gas exploration over the past 17 years, and the current situation has arisen due to over-reliance on imports. He said if adequate import infrastructure had been developed and four terminals had been set up instead of two, the current crisis could have been avoided.

Steps have also been taken to strengthen Bangladesh Petroleum Exploration and Production Company (Bapex) to boost domestic gas exploration. In addition to rapid drilling, orders have been given to procure two more rigs. On the 'single buyer' system for fuel oil procurement, the minister said he supports opening a portion of oil imports to the private sector to ensure energy security. He also alleged that various rumours had been spread on the issue, calling the campaign that specific companies would be given oil business before any policy was finalised misleading. He assured that all stakeholders would be consulted before any new policy is formulated.