Ongoing energy crisis is adversely affecting the industry. Companies are failing to supply gas as per demand. Production in factories has dropped to half. Many factories have closed. In such a situation, the owners are thinking of using liquefied petroleum gas (LPG) as an alternative energy. The government has already formed a panel to formulate policies by identifying its potential and challenges. A meeting was held under the chairmanship of Prime Minister's Energy Advisor Dr Tawfiq-e-Elahi Chowdhury last month to explore the possibility of using LPG in the industrial sector as an alternative energy.
The meeting decided to formulate a draft policy for the use of LPG. A 14-member committee headed by Shamim Khan, Director General, Hydrocarbons Unit, Energy and Mineral Resources Division, has been asked to draft the policy within the next two months. LPG Operators Association of Bangladesh (LOAB) President presented a report titled 'LPG: Alternative energy Solutions for Bangladesh Industry' on problem-solving through PowerPoint.
The Ukraine-Russia conflict that started two years ago destabilized global markets. All kinds of imported products have increased dramatically. The biggest impact is on the energy sector. There is a dollar crisis in the country. As a result, there is a big impact in the country. Electricity load shedding has to be done for about 10 hours every day. Then the government focused on domestic production. Several gas wells have also been found in the meantime. In this, the crisis of this sector will be greatly reduced by those concerned. Meanwhile, the responsible committee discussed the technical and commercial aspects of using LPG with other energy by identifying some possibilities and challenges.
The head of the committee said that before formulating the draft policy, we will discuss it with all partners including users, and suppliers. Bangladesh Textile Mills Association President Mohammad Ali Khokon said the factories currently run on liquefied natural gas (LNG), the primary ingredient of which is methane. On the other hand, the primary component of LPG is propane, so it cannot be used to run factories. There are many questions about using propane from methane. He said that they had expressed those concerns in a meeting with the Prime Minister's Energy Adviser. Bangladesh Garments Manufacturers and Exporters Association Director Asif Ibrahim said many factories in Bangladesh are using LPG as an alternative to conventional captive power generation methods like diesel generators.
However, compared to diesel, LPG is considered a cleaner and more environmentally friendly energy and its use can help reduce air pollution and greenhouse gas emissions, he said. He further said that LPG can help in reducing the operating cost of export-oriented factories. But for this change, the factory owners have to invest a huge amount. He commented that the government should provide cash incentives, tax holidays, and sufficient time for factories to shift from captive power generation to LPG. 'It is important to note that LPG offers many advantages over conventional energy.
But its use still needs to be considered, such as safe handling and storage,' he said. He said that the supply and infrastructure for the distribution and storage of LPG needs to be developed sufficiently so that there is scope for widespread use in the industry. Zakaria Jalal, executive director of Bashundhara LP Gas Limited, said that increasing the use of LPG in industrial plants is challenging because of the price difference with LNG. Bashundhara LP Gas Limited is the top company in the LPG gas market of Bangladesh, with 24 percent of the LPG market worth 3.2 billion dollars. Zakaria Jalal said, currently the price of LPG is Tk 103 per kg and the price of LNG is Tk 40 per kg. He said, 'Industrialists will not be interested in using LPG from LNG.' Uninterrupted LPG supply is a big challenge for the government to meet the huge household energy demand of about 16.5 crore people in the country.
As the production of natural gas in the gas fields operated by government and private companies is decreasing day by day and natural gas reserves are running out, the use of alternative energy sources is suggested by the government.
According to Pran RFL Group, there is no supply of natural gas in the northern parts of the country, so the use of LPG in the industrial sector can be ensured in these areas.
The president of BKMEA said that many industries in Narayanganj have not been getting gas supply for quite some time.
ARS
