Dhaka: Bangladesh incurs a loss of 10 percent in its natural gas transmission system, a figure over 33 percent higher than the international standard, the energy regulatory commission reported today. ‘Currently, the gas system loss is 10 percent in the country,’ stated Bangladesh Energy Regulatory Commission (BERC) Jalal Ahmed to BSS.
According to Bangladesh Sangbad Sangstha, international standards dictate that the maximum acceptable gas loss in distribution lines should be between 0.20 to 0.30 percent. BERC chief Ahmed emphasized the urgent need to reduce this volume of loss across the six gas distribution companies in the country. ‘We must reduce the volume loss by any means in the six gas distribution companies . . . we are working to bring it to a tolerable stage,’ Ahmed remarked.
Experts have pinpointed theft, tampering, and leakages as the primary contributors to this significant loss, leading to substantial revenue deficits for the government. Shahnewaz Parvez, managing director of state-run Titas Gas Transmission and Distribution Plc, admitted to a 10.6 percent loss in the gas distribution system last month. Over the past six months, the system loss consumed a staggering 1369 million cubic meters of gas.
Gas is supplied to the six distribution companies by domestic and international exploration firms through transmission lines, eventually reaching consumers via distribution lines. Experts argue that minimizing gas wastage could mitigate the pressure on LNG imports amid the current dollar crisis. Saleq Sufi, an independent energy expert and former director of the state-run Gas Transmission Company Ltd (GTCL), noted that distribution companies are primarily responsible for the loss due to potential malpractices.
A Petrobangla official, speaking anonymously, revealed that the overall system loss from July to December last year was 13.5 percent, five percent higher compared to the same period the previous year. The system loss for the 2023-24 fiscal year was reported to be 8.43 percent. An expert, previously affiliated with a distribution company, estimated that approximately 300 million cubic feet per day (mmcfd) of gas is currently being stolen or misused from the 2,700 mmcfd supplied daily. Titas and Bakhrabad Gas Distribution Company were identified as the top companies incurring system losses due to vested interests.
Petrobangla officials reported that the country’s gas production, including LNG, was 2858.0 mmcfd on Monday. The government has approved the import of 1,700 million cubic meters (19 cargoes) of LNG from the spot market over the last six months, from July to December. The six state-run distribution companies include Titas Gas, Bakhrabad Gas Distribution Company Ltd, Jalalabad Gas Transmission and Distribution Company Ltd, Paschimanchal (West Zone) Gas Company Ltd, Karnaphuli Gas Distribution Company Ltd, and Sundarban Gas Company Ltd.
Consumers and experts have long claimed that gas theft, under the guise of system loss, is on the rise. Titas Gas has initiated a campaign to disconnect illegal lines and bring illegal users to justice. Managing Director Parvez mentioned that the company is preparing a roadmap to reduce system loss by 5 to 7 percent each month. While experts acknowledge that pipeline leakages cause a small portion of system losses, they contend that meter tampering is a more significant issue affecting various locations. The tender process is currently underway to repair pipeline leaks.