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"This country burst: massive power outage, or for another two weeks! Fuel shortage, textile industry suffered a heavy setback!" Shipping Logistics | International Logistics | International Freight Forwarders | Guangzhou Freight Forwarders | Panyu Freight Forwarders | Hongde International
Jun 08,2023
Recently, Bangladesh has experienced continuous high temperature weather, rising demand for electricity, coupled with fuel shortages in power plants, and power shortages in many places have led to frequent power outages.
On June 4, Bangladesh's energy department officials said that a large-scale blackout across the country may continue for another two weeks.
According to Reuters, Bangladesh has suffered a severe power shortage since April.
On the one hand, the frequent high temperature weather has caused the demand for electricity to soar; on the other hand, about 75% of Bangladesh's electricity depends on imported natural gas for power generation, and the price of liquefied natural gas is high. In the second half of 2022, it is a record high. Have to reduce imports.
To make matters worse, affected by the tropical cyclone "Mucha" in mid-May, parts of Bangladesh were affected. Many LNG carriers delayed their shipping schedule, and the national power supply system was further under pressure.
Bangladesh's Minister of State for Power, Energy and Mineral Resources, Nasrallah Hamid, said that the reason for the widespread power outage was "we cannot ensure an adequate supply of coal and natural gas", which "may continue for another two weeks".
Hamid said that in the past two months, the energy sector has been working hard to avoid fuel shortages, but electricity consumption is increasing and fuel supply is becoming more and more difficult to guarantee.
A senior energy department official said that due to fuel shortages, an important coal-fired generating unit will be closed on the 6th of this month, which may further aggravate the power shortage, "unless rain reduces electricity demand".
Recently, according to Chinese reports in Bangladesh, the country's Prime Minister Sheikh Hasina said in parliament last Sunday that the power shortage has reached an intolerable level, and she urged the Bangladeshi people to be thrifty in using electricity and other things.
In addition, the country's Minister of Planning Mamanan said that with no end in sight to the war in Ukraine, Bangladeshis must spend pragmatically and actively increase productivity to revive the economy.
"Unless the war in Ukraine settles down a little bit-and I don't think there's any immediate possibility-we're in a difficult time." The minister said in an interview with bdnews24.com.
"We have to tighten our belts, spend less, don't waste, work harder and produce more at home. Rice, beans, fish, poultry, everything, including electricity. But we can't produce electricity without the import of fuel. There we have to give more attention."
Energy crisis threatens industry development in Bangladesh
Recently, according to Reuters, power shortages threaten the development of Bangladesh's garment industry, which is one of the most important economic pillars of Bangladesh.
According to the website of the Zhejiang Provincial Committee of the China Council for the Promotion of International Trade, in the previous few months, despite the global economic slowdown, Bangladesh still achieved growth in clothing exports.
According to provisional data released by the Bangladesh Export Promotion Board (EPB), garment exports from Bangladesh increased by 9.09 year-on-year from July 2022 to April 2023, reaching US $38.577 billion billion.
Clothing products account for more than 80% of the total value of exports, and the reduction in exports will seriously affect the country's foreign exchange earnings, thereby weakening its ability to purchase imported fuel.
Businesses are struggling to continue operations at manufacturing units as the energy crisis and frequent power outages hit industrial sectors across the country.
From apparel to primary textiles to other industries, factories cut output by nearly 50 percent due to frequent load shedding, business leaders said. The situation makes their future uncertain, they said, as they heard about the closure of the second unit of the 1320-megawatt Payra thermal power plant on Monday.
Mohammad Ali Khokon, chairman of Bangladesh Textile Mills Association (BTMA), said the primary textile industry is facing a serious setback due to the energy supply crisis.
"We have more than 1700 textile mills; about 35 percent of them rely mainly on electricity. The power situation is getting worse. We can feel the pressure from Dhaka, the situation is worse outside the capital."
Kokhon told the Daily Sun on Sunday. The business leader mentioned that textile mills in Gazipur, Nalsindi and Nalayanganj were experiencing operational setbacks as a result of the situation.
In addition, the heat sweeping across Bangladesh has caused health problems, affecting children, the elderly and people with pre-existing diseases. There has been an alarming surge in the number of patients suffering from dehydration, asthma, high blood pressure, fever and diarrhoea as a result of extreme heat.
Power outages have also added to the unbearable heat, angering people in many areas, with attacks on offices.
Finally, it is reminded that the enterprises that have recently traded with Bangladesh should keep in touch with local customers, make business adjustment plans and prevent risks, so as to avoid economic losses caused by this..
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