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The Financial Express

No subsidy burden on power sector for LNG import, says Nasrul

Tender floated to import 1.0m tonnes of coal


| Updated: August 30, 2018 20:18:38


The specialised vessel ‘Excellence’ reached Bangladesh on Aprril 24 last carrying 133,000 cubic metres of LNG - Internet photo The specialised vessel ‘Excellence’ reached Bangladesh on Aprril 24 last carrying 133,000 cubic metres of LNG - Internet photo

The country's power sector would not require any 'significant' amount of subsidy out of LNG imports as the existing dual fuel power plants would be converted into gas-fired ones, state minister for energy and power Nasrul Hamid said on Sunday.

"Oil-fired power plants would be shifted to gas-fired ones wherever necessary. So, we would be in comfort zone here," he said.

A significant amount of additional money would be required for the power sector, he said while speaking at a post-Eid press conference at the secretariat on Sunday morning.

Dual fuel power plants have provision to run on both diesel and gas, but such power plants were running on diesel for long due to gas crisis.

Responding to a query, he said Shikalbaha gas-fired power plant, which was kept shut for long due to gas scarcity, has already initiated electricity generation with re-gasified LNG (liquefied natural gas) and several more gas-fired power plants in Chattogram including that of Rauzan would be operational soon.

Mr Hamid also clarified issues of not bearing any subsidy burden due to import of 'expensive' LNG as it would be blended with locally produced gas.

"Currently, we have the capacity to consume around 75-100 million cubic feet per day (mmcfd) equivalent of re-gasified LNG," he said.

Regarding the move to re-initiate electricity generation from Barapukuria coal-fired power plant, he said a tender has been floated to import around 1.0 million tonnes of coal to generate electricity and resolve electricity crisis in the northern region.

He said transportation of coal from Mongla port to Barapukuria power plant would be a major challenge.

But this coal is being imported to deal with an urgent situation, he said.

One unit of the Barapukuria power plant was kept operational over the past five days under special arrangements, he said.

Barapukuria coal-fired power plant would be fully operational by October, he hoped.

Electricity supply situation in the country's northern region has been facing a major setback over the past couple of months as all the three units of Barapukuria thermal power plant having total capacity of 525 megawatt (MW) are 'under force-closure' due to coal scarcity.

'Disappearance' of around 142,000 tonnes of coal worth around Tk 2.27 billion from BCMCL's coal storage yard a couple of weeks back pushed suspension of operation of the Barapukuria coal-fired power plant to uncertainty.

State-run Barapukuria Coal Mining Company Ltd (BCMCL) could detect this anomaly only in mid-July when it initiated to measure out the overall coal stock in the yard.

Mr Hamid said the energy ministry has initiated investigation into the issue so did the Petrobangla.

"We said earlier no corruption would be tolerated," he said. "It did not happen in one day."

Some 30,000 trucks would have been required to transfer coal to the tune of around 142,000 tonnes, he said.

It is good that it has been identified under the incumbent government, he added.

Responding to a query he said it was the Bangladesh Energy Regulatory Commission (BERC) to decide on any issue regarding tariff adjustment.

But the tariff would be rational and within the comfort zone of clients, he added.

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