Loadshedding returns with a vengeance

It is concerning to note that people across the country are having to endure long power cuts as electricity production is being hampered mainly because of a shortage of natural gas supply. Around 52 percent of the country's power is produced using gas, according to Bangladesh Power Development Board (BPDB) data. And data from Petrobangla shows that the government has been injecting less LNG into the national gas-supply grid, as it decided to not buy LNG from the international spot market for the time being due to its increased price. When the government last bought LNG from the spot market in May, the price of LNG was USD 26 per Metric Million British Thermal Unit. Now, it has shot up to USD 36 per Metric Million British Thermal Unit. According to the Petrobangla chairman, the government would only buy more LNG once the price comes down which, given the global circumstances, may take some time.

As the government lowered its gas supply for energy production, people across the country have been experiencing power outages multiple times a day, bringing back memories of days when "loadshedding" was a common phenomenon. At least 854 mmcfd (million cubic feet per day) of LNG was supplied to the national gas grid on June 29. That figure, however, dropped down to 507 mmcfd by July 4, according to Petrobangla data. Even though it is easy to accept that the government is in a tight spot in relation to gas supply because of external factors, what we cannot understand is why the government did not anticipate the ongoing supply crunch and take pre-emptive measures to prevent the present crisis.

Read more

Gas crunch brings back power cuts

The government itself has admitted that the main reason for the rise in gas price is the Russia-Ukraine war. But that war began on February 24. The government should have anticipated a rise in gas price in its immediate aftermath, and taken necessary steps to mitigate any potential crisis. In fact, experts have long warned of an impending crisis because of the government's overdependence on expensive LNG from abroad. Because the government failed to take into account these concerns, people across the country are now suffering – industries are having to endure higher production costs, and hospitals are suffering from power outages while doctors are in the middle of performing surgeries on their patients.

This cannot continue. The government cannot simply expect people to endure such hardship day in and day out. It needs to immediately come up with an alternative strategy, with a focus on renewable energy, and in the meanwhile, make sure that healthcare and other essential services are not hampered by this type of power outages. Additionally, it needs to return to focusing on local gas exploration and extraction instead of relying so heavily on its export, as experts have suggested for years.