Overall gas supply across Bangladesh is expected to increase substantially in September amid re-gasification of increased volumes of imported liquefied natural gas (LNG) with both the floating terminals in full-steam operation.
“At least eight LNG cargoes will be imported in September, mostly from spot LNG suppliers and short-term contracted companies,” a senior official of state-run Petrobangla told The Financial Express on Saturday.
Average LNG re-gasification in the country’s two operational floating storage and regasification units (FSRUs) is expected to be around 750 million cubic feet per day (mmcfd) with the daily re-gasification ranging from 700mmcfd to 800 mmcfd, he said about the good news amid prolonged fuel outcry.
Of the eight LNG cargoes confirmed for delivery in September, Gunvor Singapore Pte Ltd will deliver two cargoes under its long-term deal with Petrobangla, Aramco Trading Singapore Pte Ltd will supply another two — one from spot market and another under a short-term supply deal.
Posco International Corporation and TotalEnergies Gas & Power Ltd will deliver two LNG cargoes from spot market.
If the contracted firms under direct-purchase method (DPM) supplies LNG in line with their commitments, overall LNG re-gasification will increase further, he said.
The official said overall LNG re-gasification would be much higher in September compared to August when the LNG re-gasification fell as low as to around 190mmcfd.
An abrupt accident in US Excelerate Energy’s FSRU on the Bay of Bengal left the floating LNG terminal idle at least for 15 days from late July to mid-August, dragging down the country’s overall gas supply.
Delivery of at least two spot LNG cargoes was affected due to abrupt shutdown of the FSRU at deep sea in Moheshkhali.
The cargoes of Gunvor Singapore Pte Ltd and TotalEnergies Gas & Power Ltd could not be delivered to the accident-ridden FSRU and had to remain stranded in the Bay of Bengal for a couple of weeks.
Rough seas, dearth in LNG supply along with the influx of a faulty LNG cargo also contributed to the squeezing of the country’s overall LNG re-gasification during August.
Although the accident-ridden FSRU, owned by Excelerate, resumed partial operation on August 6, the rough weather over the Bay of Bengal had forced the LNG cargoes away from floating LNG terminals on safety grounds after the first week of August.
Excelerate Energy’s FSRU — Excellence — also had run out of LNG following the refusal to receive LNG via ship- to-ship transfer from a moss-type LNG cargo — Al Haamra — supplied by Aramco Trading Singapore Ltd on safety issue during middle of August.
The significant decline in LNG re-gasification had pushed the government to divert some gas to power plants from industries as part of rationing.
The disruptions had cut gas supply to the national grid significantly, reducing gas pressure in many areas, disrupting industrial production, squeezing generation in gas-fired power plants.
Long queues of vehicles in front of CNG (compressed natural gas) filling stations across the country had been a regular scene.
The disruptions had intensified gas shortages in Dhaka and other parts of Bangladesh, where many households have been left with little or no gas for cooking for much of the day.
In some areas, supplies have stopped altogether, while factories in key industrial zones have reportedly been forced to scale down production because of low gas pressure.
Sources said the government was grappling to arrange LNG cargoes due to restricted contractual supplies because of the Middle East war and Strait-of- Hormuz supply disruptions before the abrupt operational closure of one of its two FSRUs on July 21.
Non-delivery of several scheduled LNG cargoes awarded under the DPM method also contributed to the abrupt shortage of LNG for regasification, prompting the government to buy spot LNG cargoes within a very short span of time in late August to meet exigencies.
“We are now well-prepared to keep the country’s overall LNG re-gasification to around 750 mmcfd on average in September after having experiences of unforeseen accident, ‘incapable’ DPM contractors and ‘faulty’ LNG cargo,” said a senior official of state-run Rupantarita Prakritik Gas Company Ltd (RPGCL).
High cost of LNG on the spot market, however, has emerged as a major challenge, he said.
“Comparatively cool temperature in September might ease the country’s overall energy demand in the coming month,” he hopes.
RPGCL is a part of state-owned Bangladesh Oil, Gas and Mineral Corporation, also known as Petrobangla, and is responsible for LNG trading in the country.
Bangladesh’s overall natural gas supply as of August 28 was around 2,360mmcfd against a known demand for around 4,000mmcfd, according to official Petrobangla data.
