324 million cubic feet of gas is being stolen daily!
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Photo: Collected
Dhaka: Out of the 2,700 million cubic feet of gas supplied daily, 324 million are being stolen. In terms of ratio, Bakhrabad Gas Distribution Company is at the top of the theft, while Titas Gas Transmission and Distribution Company is at the top in terms of quantity.
According to Petrobangla data, 1,700 million cubic meters (19 cargoes) of LNG have been imported from the Spot Market in the last 6 months (July-December). According to Bangladesh Energy Regulatory Commission (BERC), 1,985 million cubic meters of gas have been lost in the system during the same period. That is, more gas has been wasted than the amount imported from the Spot Market.
According to Petrobangla's calculations, the price of 19 cargoes of LNG brought from the Spot Market has fallen to Tk. 105.86 crore. That is, if theft is prevented, the actual supply should remain unchanged even if LNG is not imported from the Spot Market. But gas theft cannot be stopped in any way; it is increasing day by day which is being continued in the name of system loss.
According to BERC data, in the last 6 months (July-December), the overall system loss of gas has increased by 5 percent compared to the previous year. In the 2023-24 fiscal year, the system loss of gas was 8.43 percent which has increased to 13.53 percent in the first 6 months of the current fiscal year.
Bangladesh Energy Regulatory Commission Chairman Abdul Jalil said in the 2022 public hearing that the ideal system loss of gas is below 2 percent. There is no system loss above 2 percent anywhere in the world. He questioned the 8.5 percent system loss at that time. He said that this level should be reduced to an acceptable level.
BERC was instructed to reduce the overall system loss to 1.12 percent at that time. The following year, the system loss decreased slightly, but increased again. The overall system loss has reached 13.53 percent. That is, 12 percent of gas theft is being carried out in the name of system loss. Currently, approximately 2,700 million cubic feet of gas is being supplied to the pipeline daily. Accordingly, 324 million cubic feet of gas is being stolen from the line daily. On the other hand, the current price of 1 cargo of LNG (3,000 million) imported from the spot market is about Tk.700 crore.
In response to the question of what was the rationale for determining the system loss, the then BERC member (gas) Maqbul E Elahi Chowdhury told Barta24.com, there is no need for rocket science here. If the Western Gas Company gains the system, and other companies including the Sundarban Gas Company do not have losses, then why should Titas, Bakhrabad and Karnaphuli have losses. Surely they have a problem somewhere. That is why the order has been given to reduce the system loss.
These statistics on gas theft are based on simple numbers. Another figure for gas theft is 3 million residential customers without meters. The fixed amount of gas bill for residential customers without meters is collected. Whether the customer uses it or not or uses it more, he has to pay the prescribed bill. Based on the usage statistics of prepaid customers, the Abdul Jalil Commission, in its order issued on June 5, 2022, reduced one stove from 73.41 cubic meters and two stoves from 77.41 cubic meters to 55 and 60 cubic meters respectively.
Recently, due to the decrease in gas supply, customers are not getting gas for many hours of the day. Many are using electric heaters, some are buying LPG, and some are eating food from hotels. Due to this, it is believed that the actual usage of residential customers without meters has dropped below 30 cubic meters. Adding this calculation, the amount of system loss increases further.
BERC Member (Gas) Mizanur Rahman told Barta24.com that BERC has decided to sit with the distribution companies on why system loss is not decreasing.
The zone-based statistics of the largest distribution company, Titas Gas, for the month of December showed that the Bhairab area has the highest system loss. In December, 40.70 percent of the gas was stolen. In the Bhairab zone, 3.98 million cubic meters of gas were supplied in December, and the actual customers received only 2.36 million. After Bhairab, the Kishoreganj zone suffered the second highest loss. 27 percent system loss was seen in that zone.
On the one hand, domestic production is decreasing, on the other hand, the demand for gas is increasing. On the other hand, the situation of the Energy and Mineral Resources Department is dire. Less than half of the authorized load is being supplied. This leaves a huge deficit. On the other hand, the deficit is also increasing day by day as imports are increasing. According to Petrobangla data, there may be a deficit of 16 to 24 thousand crore taka this year (in 2025). Due to which, in the face of strong objections, a 152 percent price increase for new industries has been proposed. BERC held a hearing on that proposal on February 26.
In the hearing, business leaders criticized Petrobangla, BERC and distribution companies. They all advised to prevent theft. They said, if theft is prevented, there is a huge revenue increase opportunity. There is no need to increase prices.
Recently, the illegal eviction drive of Titas Gas Transmission and Distribution Company is gaining momentum. News of the drive is being received every day.
The company's Managing Director Shahnewaz Parvez told Barta24.com, we have prepared a roadmap to reduce system losses. We will reduce them by 5 to 7 percent every month. If the loss was 10 percent in December, we reduced it to 9 percent in February. The target is to reduce it to 6 percent by December this year.
There are some system losses due to leakage. The tender process is underway to repair them. Meter tampering is being found, that drive has also been intensified. You can see the drive every day. Here is no such concession is being given.
The Secretary of the Energy and Mineral Resources Division has directed the inter-ministerial meeting to file a criminal case against the officer who fails to prevent gas theft in addition to departmental measures and report it to the Anti-Corruption Commission.
The Secretary has directed that officers at all levels, starting from the General Manager of the company, should be given zone-based responsibilities. They will deliver gas according to the meter. If the officers and employees assigned to the zone-based responsibilities fail to close illegal gas connections and reduce system losses, the annual bonus of the concerned officer should be stopped. And those who are able to achieve success should be given rewards.