Power cuts may hamper new investment

Petrobangla, the state-owned oil, gas, and minerals corporation, is embarking on an ambitious plan to drill a total of 48 wells across different gas fields to add 618 MMCFD to the national grid by 2025. This endeavour is crucial given the current gas shortage being experienced by various sectors, including power and industries.

The issue of unpaid bills for electricity import from India, amounting to Tk 60 thousand crores as of the end of last January, has put significant strain on Bangladesh's finances. The government's efforts to address this challenge, including releasing subsidy funds and issuing special bonds, have been insufficient to cover the outstanding liabilities.

The opposition from prominent American trade bodies, including the American Apparel and Footwear Association (AAFA), the National Retail Federation (NRF), the Retail Industry Leaders Association (RILA), and the United States Fashion Industry Association (USFIA), against the idea of imposing higher tariffs on apparel imports from Bangladesh and other countries, underscores several key concerns.

The closure of Bhola's 34.5 MW rental power plant three months ago due to mechanical failure has plunged the district into a prolonged period of darkness and load shedding. The West Zone Power Distribution Company (Ozopadico) has been struggling to meet the electricity demand through the national grid, leading to frequent power outages. This situation has exacerbated the impact of the current heatwave on the people of Bhola, making daily life unbearable.

The ongoing unrest in the Middle East is indeed causing significant concerns for Bangladesh's export trade, particularly in the garment industry. The potential rise in oil prices and disruptions in transportation routes, especially via the Suez Canal, are compounding challenges for exporters.

The Suez Canal plays a crucial role in connecting Bangladesh's export products to European markets, saving both time and transportation costs. However, with the current instability in the Middle East, alternative routes via South Africa are less efficient and more costly, ultimately impacting exporting entrepreneurs.

The resumption of regasification by Summit LNG Terminal Co's floating storage and regasification unit (FSRU) has led to an increase in the country's overall gas supply from gas-fired power plants. After resolving a technical glitch following its overhaul in Singapore, Summit's FSRU has resumed regasification, contributing to improved gas supply in Bangladesh.