Saturday, September 24 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Gas News
Today's News
Yesterday's News
Week of Sep 19
Week of Sep 12
Week of Sep 05
Week of Aug 29
Week of Aug 22
By Topic
By News Partner
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Gas News > News Article

    Share by Email E-mail Printer Friendly Print

    Petrobangla To Get 2,000C From GDF To Import LNG


    July 29, 2022 - Energy Bangla

     

      DHAKA, July 28 -- The Finance Ministry has given its consent to provide Tk2,000 crore to Petrobangla from Gas Development Fund (GDF) to import liquefied natural gas (LNG).

      An official order reveals that as per the proposal of the Energy and Mineral Resources Division, the Finance Ministry agreed to provide the fund as a loan to the state-owned Petrobangla.

      The approval from the Finance Ministry came against the backdrop of the severe fund crisis Petrobangla has been facing following the excessive price hike of gas in the international market as a fallout of the Russia-Ukraine war.

      The price of LNG has crossed $39 per MMBtu from below $10 after the Russia-Ukraine war began on February 24 this year.

      About the Finance Ministry's approval, Consumers Association of Bangladesh (CAB) Vice President M Shamsul Alam said this is an indication that the government is in a serious crisis in dealing with the energy sector.

      Recently the Energy Division announced its decision not to import any LNG from the international spot market because of the price hike.

      As a result, it has to go for reducing power generation from gas-fired plants forcing the power entities to resort to planned load shedding.

      However, it continued importing LNG from Oman and Qatar under long term contracts where the price is fixed but varies to some extent on different conditions.

      Now, it's not clear whether Petrobangla will use the new fund to resume import of LNG from the spot market or utilize it to import gas from long-term suppliers.

      GDF was created by the order of the Bangladesh Energy Regulatory Commission (BERC) a few years back to allow the Pertrobangla to receive additional money with gas bills from the consumers to use the fund for gas exploration in the country.

      The BERC also created some other funds from the consumers' additional money and the regulator is highly against the use of such funds for any other purpose than gas sector development.

      But all operation of such funds was taken up by the Energy Division. Meanwhile, Petrobangla used some of the funds for different other purposes while deposited to the government exchequer as per a Finance Ministry order.

      As per the current arrangement, if the Energy Division or Petrobangla wants to use the fund for any purpose, it has to take permission from the Finance Division. The BERC is against the operation and control of the Energy Division on such funds.

      The BERC in June directed state-owned Petrobangla to return a total of Tk12,227.44 crore to its two original funds-the energy security fund (ESF) and the GDF.

      The energy regulator's latest directive which came as the BERC Order No-2022/7, in detail, was released on June 27 and uploaded on its website on the same day.

      As per the BERC verdict, Petrobangla has to return Tk9227.44 crore to ESF Fund and Tk3,000 crore with interest to the GDF fund which the organization had taken away and used for different purposes.

      The verdict did not dictate a specific date for Petrobangla as to when it has to return the funds.

      The order came as a follow-up of the public hearing on gas prices held on March 21 in the city's BIAM Auditorium where different consumer rights groups, including CAB, termed the ESF and GDF fund as consumers' money which they paid in addition to their bills for gas field development and security purposes.

      The CAB and other rights groups pleaded with the BERC to return the amount to the original funds and ensure its use only for gas field development and the gas sector's security purpose in a transparent way that will be monitored by consumers' representatives. Published by HT Digital Content Services with permission from Energy Bangla. For any query with respect to this article or any other content requirement, please contact Editor at contentservices@htlive.com

    TOP

    Other Articles - International


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.