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Summit LNG terminal operations halted due to cyclone damage

Gas supply crunch hits country

Published : Thursday, 6 June, 2024 at 12:00 AM  Count : 285


The operation of Summits existing FSRU, Summit LNG Terminal, has remained halted since May 30 after damage was spotted from the impact of a stray pontoon during cyclone Remal that made landfall last week in the country.

"The FSRUs ballast water tank had been damaged after a stray broken floating pontoon hit," revealed an official statement from Summit Group.

"We don know the exact situation as the damaged site is under water, however, we expecting to get a full scenario shortly, if it is not possible to repair it here then the LNG terminal is likely to be sent to Singapore for repair," Energy Secretary Nurul Alam told reporters.

Meanwhile, leaders of Bangladesh Textile Mills Association (BTMA) sat with the officials of state-owned company Petrobangla and urged it to ensure adequate gas supply to the industrial units.

BTMA President Mohammad Ali Khokon through a letter to Petrobangla Chairman Zanendra Nath Sarker demanded improvement in gas supply to the industrial belts, including areas like Narayanganj, Narsingdi, Gazipur, Maona, Savar, Ashilia, Tongi and Sreepur.

The factory owners said there is zero gas pressure in some units while some are receiving as low as 1 to 3 pounds per square inch (PSI) whereas they need 10-15 PSI to run the mills in full capacity.

The gas supply situation worsened in the last five days when gas pressure reduced to almost zero in many factories, Khokon said.

However, CNG filling stations, power plants industries and household consumers are also facing problem due to gas supply shortages.

However, production in spinning, dyeing and weaving mills in the Tongi, Sreepur, Gazipur and Maona areas declined by around 65 percent due low gas pressure in the last five days.

A senior official of Noman Group, the single largest textile and garment exporter of Bangladesh, told media that his group is also at the risk of missing the export target and schedule because of the gas crisis.

However, our correspondents said that many factory owners of the industrial belt now fear missing the monthly production target and failing to ensure timely air shipment of the goods as nearly 60 percent of its spinning, dyeing, washing, weaving and finishing units are located in the countrys largest industrial belt consisting of Gazipur, Sreepur, Maona, Savar, Ashulia and Tongi are being facing the gas crisis.

If the leakage cannot be mended locally, the Petrobangla may need to send the FSRU abroad for getting repaired and in that case, it may need one month to see a rise in gas pressure, they said.

Md Ridwanuzzaman, branch manager for operations of Titas Gas Marketing and Supply at Gazipur admitted that gas flow remained low in the area over the last few days.

Meanwhile, Summit LNGs statement said that during the cyclone Remal, a broken stray steel structure weighing hundreds of tons banged the Summit LNG Terminal, causing significant damage.

"The impact sheared the vessels outer hull, approximately one metre below the waterline, leading to water ingress into the ballast tanks. Despite the severe monsoon conditions, the crew, operators, and owners of the vessel, along with the Summit team, worked tirelessly day and night to secure the vessel and its LNG cargo.

Their bravery and relentless efforts successfully prevented the loss of the cargo," it said.

According to assessments by Bureau Veritas, certification societies and international inspectors, the vessel is now ready to discharge all onboard LNG before proceeding to a dry dock in either Singapore or the Middle East for necessary repairs, it reads.

"The Summit LNG Terminal is expected to return to Bangladesh after repairs, hopefully within three weeks," the statement said.

US-based Excelerate Energys FSRU, Excellence, is currently regasifying LNG above its official capacity of 600 mmcfd to meet the countrys gas demand due to a halt in the operation of the Summit-led FSRU.

Meanwhile, countrys industries have been facing a gas shortage since Wednesday due to gas supply being disrupted by aftershocks of Cyclone Remal as an LNG terminal was partially damaged.

Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon told The Business Standard that none of the industries have been able to operate since morning.

"I received several calls from our member industries located in Mymensingh, Gazipur, and Narayanganj areas…we are not getting an adequate supply of gas," he said
He expressed fears that most factories would not be able to pay their workers salaries and bonuses ahead of Eid-ul-Adha.


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