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Restoring Balance: Bangladesh’s Rural Energy Realities
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Key sector institutions and their functions are as follows: ■ Petrobangla. Successor to the Bangladesh Mineral Oil and Gas Corporation, Petrobangla is a public-sector holding corporation responsible for oversight and coordination of 11 subsidiary gas companies. ■ BAPEX. The Bangladesh Petroleum Exploration Company is a state-owned entity that manages exploration and production. ■ BGFCL. The Bangladesh Gas Fields Company Limited is a state-owned entity that manages production. ■ SGFL. The Sylhet Gas Fields Limited is a state-owned entity that manages production. ■ IOCs. The International Oil and Gas Companies are private-sector exploration and production entities; they include Unocal Corporation, Cairn Energy, Niko Resources, and Tullow Oil. ■ GTCL. The Gas Transmission Company Limited manages midstream. ■ TGTDCL. The Titas Gas Transmission and Distribution Company Limited is a state-owned, regional distribution entity. ■ BGSL. The Bakhrabad Gas Systems Limited is a state-owned, regional distribution entity. ■ JGTDCL. The Jalalabad Gas Transmission and Distribution Company Limited is a state-owned, regional distribution entity. ■ PGCL. The Pashchimanchal Gas Company Limited is a state-owned, regional distribution entity. ■ RPGCL. The Rupantarita Prakritik Gas Company Limited is a CNG marketing entity. Downstream Deficiencies and Reform. The downstream gas sector includes pipeline gas, bottled LPG, and CNG. Downstream sector performance is hampered by network losses of about 20 percent, as well as pricing and commercial performance deficiencies. Fiscal drain due to inadequate pricing prevents operating companies from reinvesting in required exploration and production facilities and network expansion.7 Although LPG is widely available in most peri-urban areas, it is estimated that only 10 to 15 percent finds its way to rural areas for consumption. In more remote rural areas, where LPG prices are fixed, it is not unusual for local dealers to charge significantly higher prices. The government has agreed to a roadmap for sector reform, which emphasizes clear separation of policy making, regulatory, and service provisions through the creation of well-structured, adequately funded entities. Key decisions include transferring Petrobangla’s quasi-regulatory functions to the newly formed Energy Regulatory Commission and resolving retail-market arrears to alleviate fiscal drain on Petrobangla.
Renewable Energy Sector Non-biomass renewable-energy systems also hold promise for rural Bangladesh. Solar photovoltaics (PV) are used widely throughout the country, with more than 80,000 reported household- and enterprise-level installations (3.5 MW total capacity). Solar PV could be used within a broader rural electrification program if affordable products that meet consumer needs were supplied and supported.