FSRU malfunction cuts daily gas supply by 450mn cubic feet

The fault has wiped 450 million cubic feet from daily gas supplies nationwide

A technical fault at one of Bangladesh’s floating liquefied natural gas (LNG) terminals, or FSRUs, has reduced gas supply to the national grid by around 450 million cubic feet per day, affecting industries, power plants and CNG stations across the country.

The disruption led to lower gas pressure in some areas, preventing CNG stations from receiving adequate supplies. Long queues have consequently formed at several stations.

Speaking at a press conference on Wednesday, Monir Hossain Chowdhury, joint secretary of the Energy and Mineral Resources Division, said technical experts and the relevant agencies were working to resolve the problem at the FSRU and restore normal gas supply to the national grid as quickly as possible.

He said efforts were also being made to ensure uninterrupted gas supply to priority and essential sectors despite the reduced availability.

According to the energy division, the immediate cause of the current disruption is the technical problem at the FSRU.

However, it said the impact has been exacerbated by the country’s growing dependence on imported LNG.

The division said inadequate emphasis had been placed on expanding domestic gas exploration and production in recent years, increasing reliance on LNG imports.

As a result, any disruption to LNG import infrastructure places significant pressure on the national gas supply system.

The government said it has taken short-, medium- and long-term initiatives to gradually reduce dependence on imported LNG by increasing domestic gas exploration and production.

As part of that plan, it aims to drill 100 wells in phases.

Earlier on Wednesday, the Executive Committee of the National Economic Council (ECNEC) approved a project worth Tk 7.29 billion to drill three gas wells in Begumganj and Sunamganj.

The government is also inviting bids under both onshore and offshore Production Sharing Contract (PSC) models to step up gas exploration and attract domestic and foreign investment.

However, the Energy Division noted that gas exploration, well drilling, infrastructure development and the start of commercial production are time-consuming processes.

The ministry said the country’s longstanding energy challenges cannot be resolved overnight, but the government is treating the issue with the highest priority.

Several initiatives have also been undertaken to strengthen energy supply security while meeting current and future demand.

These include inviting bids for a fourth FSRU, assessing the feasibility of importing LNG from Malaysia in ISO tanks, and reviewing pipeline and other transportation options to bring gas from Bhola to the mainland.

The government is also continuing efforts to drill new wells, carry out workovers at existing wells, increase domestic production, and diversify both energy import sources and supply infrastructure.

The energy division expressed hope that gas supply would improve once the technical fault at the FSRU is resolved.

The government apologised to consumers and the public for the temporary inconvenience.