The Energy and Mineral Resources Division has initiated a move to solve the financial crisis in the gas sector without raising gas prices during the coronavirus pandemic.
From now on, distribution companies will transfer the rest of the money in gas bills to Petrobangla, leaving the distribution charge (distribution cost).
The move came in an order issued on January 17, and signed by Md Anisur Rahman, senior secretary of the energy division.
According to the order, the gas distribution company will transfer the rest of the money to Petrobangla by the 7th of every month, keeping its share in the collected bills. Petrobangla will repay the domestic and foreign charges or dues within the next 7 days.
An official of the energy division said, “The financial crisis in the gas sector has been going on for a long time. However, the price of liquefied natural gas (LNG) in the international market is increasing in the last three months.
That is why we are trying to bring back financial discipline. The distribution company has been asked to deposit the money in Petrobangla's account without keeping it in the bank account. Then Petrobangla will coordinate all the issues.”
The distribution companies supply domestic and foreign gas extraction companies and imported LNG to the customer. Although there are certain legal obligations to pay the price of LNG, the bills of domestic and foreign companies that extract gas in the country are outstanding. This created a financial crisis. Although this problem has been going on for a long time, this problem will no longer exist.
Md Maqbul-E-Elahi Chowdhury, member (gas) of the Bangladesh Energy Regulatory Commission, said the production and import prices of natural gas including those of Bangladesh Gas Field Company Limited (BGFCL), Sylhet Gas Field Company (SGFCL), Bangladesh Petroleum Exploration and Production Company (Bapex) and IOC, is fixed by the government through Petrobangla. Petrobangla is responsible for paying it.
On the other hand, BERC fixes the price of gas at the consumer level. These include transmission charges, distribution charges, gas development funds, energy development funds and Petrobangla charges. All the money in this sector will be deposited to Petrobangla. Here Petrobangla can act as a basket.
Mohammad Ali, managing director of Bapex, said some 97 percent of Bapex's Shahbazpur gas field output was supplied to PDB's power plant. This is causing problems in paying the wellhead margin. If this is done through Petrobangla, it will be easier to solve the crisis.
According to the order of the Energy Division, Petrobangla will coordinate with BERC to make a decision in case of any crisis.
According to the Ministry of Power, Energy and Mineral Resources, it was decided last September that about 45 to 55 crore cubic feet of gas would be procured per day from the spot market without being informed in detail about the sustainable method of purchasing LNG from the spot market. That amount of LNG was also bought twice in October-November saving about Taka 70 crore.
But then the prices of all fuels, including LNG, started rising in the international market. Now the price of LNG per unit (one thousand million or one crore cubic feet) has risen to $12, which was less than $6 in October. In this situation buying LNG from the spot market is stopped.