Gas, power prices to be set thru public hearing: Energy adviser

The Bangladesh Energy Regulatory Commission (BERC) will now determine gas and electricity prices through public hearings instead of government decisions, said Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy, and Mineral Resources.

He also said that the government aims to drill 50 exploration wells by 2025, moving away from the previous system of non-competitive procurements.

"From now on, all purchases in the energy sector will be done through open tenders, not through collusive methods," the adviser said while speaking at the Foreign Investors' Chamber of Commerce and Industry (FICCI) luncheon meeting on "Sustainable Energy for Bangladesh" at The Pan Pacific Sonargaon Dhaka today (20 October).

He criticised the previous administration's approach, saying, "The authoritarian Awami League government chose to import LNG instead of increasing domestic gas production." 

Fouzul Kabir addressed the controversial contracts awarded to Summit Group for floating terminals to import and distribute LNG since 2018.

He said, "Under the corrupt Special Energy Act of 2010, passed by the Hasina government, another terminal was supposed to be built by Summit Group. However, the interim government cancelled the deal, though one terminal from Summit remains operational. 

"Despite the cancellation of contracts, the energy division claimed that the decision would not impact the country's gas crisis. The government plans to invite new tenders soon."

With domestic natural gas demand exceeding supply by over 1,000mmcf despite current production and imports, Fouzul Kabir acknowledged that 45% of gas is used for electricity generation.

The adviser also warned that any act of sabotage in the power sector, including those committed by members of the Palli Bidyut Samiti, will not be tolerated. He cautioned against underestimating the current government's strength. 

"The actions of Palli Bidyut Samiti employees were unjust. If anyone is unwilling to fulfil their duties, they should leave for good. It is illegal to halt electricity supply under the guise of demand. This government is not weak—it has strong public support," he said.

Fouzul Kabir assured that the government is working to secure the safety of power substations and that alternative personnel are ready to take over if current staff fail to perform their duties.

"At this moment, Bangladesh is not at risk of a blackout. No one will be allowed to cause such disruptions," he added.

At the FICCI meeting, Ijaz Hossain, former dean of the Bangladesh University of Engineering and Technology, delivered the keynote address, analysing significant shifts in Bangladesh's energy landscape.

He noted, "As of 2022-23, the industrial sector's consumption of grid electricity was only half that of the domestic sector," a major change from 2010 when both sectors had similar usage. He attributed this shift to the expansion of rural electrification.

Ijaz Hossain also warned of the urgent need to maintain natural gas production, predicting a rise in gas demand to 4,622mmcfd by 2030. "Without drilling at least ten new wells each year, the country may become more reliant on imported LNG, putting pressure on Petrobangla's supply capacity," he said.

The discussions, moderated by Nowshad Ali of GE Vernova Bangladesh, covered a range of energy issues. Badrul Imam, an honorary professor at the University of Dhaka, spoke about geological aspects of energy sourcing, while M Rezwan Khan, former vice-chancellor of United International University, discussed renewable energy's role in sustainability. Mollah Amzad Hossain, editor of Energy & Power Magazine, highlighted media and public awareness of energy issues.

Key recommendations included improving regasification terminals, accelerating gas exploration, and diversifying energy sources by incorporating coal and renewables.