In the early 2000s, Bangladesh became perceived to be plentiful in herbal fuel. This optimism stemmed from the discovery of the massive Bibiyana fuel area by way of the US company Unocal, which suggested that the country had greater gas than it could eat domestically. Unocal even proposed exporting the surplus fuel to India. Concurrently, the Asian Development Bank (ADB) funded the “Clean Fuel Project” to sell using compressed natural gasoline (CNG) in the transport sector. The initiative aimed to lessen reliance on imported liquid fuels and to promote a cleanser alternative to diesel and petrol.
The Boom of the CNG Era
Introduced in 2002-03, the CNG assignment quick have become famous due to its cost-effectiveness and environmental blessings. It spurred a wave of enterprise opportunities, main to the established order of loads of CNG conversion and pumping stations. Thousands of automobiles, such as motor, motors and 3-wheelers, have been transformed to run on CNG. By the stop of the decade, CNG had saved Bangladesh $800 million in petroleum imports, in line with Petrobangla.
Challenges and Shortages
Despite its preliminary success, the fast growth of the CNG community started to stress the gasoline supply by 2010. The Bibiyana gas discipline became producing giant quantities of fuel for the nearby marketplace, however Bangladesh confronted a supply scarcity rather than a surplus. The CNG region ate up one-tenth of the united states of america’s 2,000 million cubic feet of gasoline consistent with day (mmcfd), but there was already a shortfall of four hundred mmcfd. This state of affairs led the authorities to halt new gas connections for all purchasers, with few exceptions for positive industrial connections.
Increasing Demand and LNG Imports
As Bangladesh’s improvement increased, the call for for fuel surged. By 2018-19, the authorities started importing costly liquefied herbal fuel (LNG) to fulfill the developing demand. This imported LNG turned into mixed with neighborhood gasoline and supplied to the country wide grid. However, no significant new oil and gas discoveries had been made in the beyond decade, inflicting a consistent decline inside the neighborhood percentage of fuel deliver. Currently, the government can deliver up to 3,000 mmcfd of fuel, of which six hundred to 800 mmcfd is imported LNG. Meanwhile, the demand for gas has possibly surpassed five,000 mmcfd.
Impact on Industry and Economy
The gas shortage has severely impacted industries that depend closely on herbal gas, together with power era, fertilizer manufacturing, and manufacturing for export and local markets. Despite those challenges, the usage of CNG keeps to grow. The price of CNG has accelerated drastically, from around Tk16 in step with unit in 2010 to Tk43 consistent with unit today. Long queues at CNG stations, combined with air, and prolonged ready instances are common lawsuits.
The Need for a Policy Shift
The preliminary promise of CNG as a “easy fuel” did not translate into lasting environmental benefits, as Dhaka’s air stays heavily polluted. As Bangladesh keeps to transform, with a shift towards electric vehicles, solar, and wind power, and with new houses adopting liquefied petroleum fuel (LPG) answers, the relevance of CNG is diminishing.
It is excessive time for the authorities to remember phasing out CNG cars and to evolve to the fact of inadequate fuel deliver. Without a policy alternate, the continuing emphasis on CNG will exacerbate the challenges faced with the aid of high-cost fuel customers and industries crucial to the economic system.