Energy supply to be biggest concern if global prices don’t drop: Salman

The energy supply is going to be the biggest challenge if its global prices do not fall in the next six months, says Prime Minister's Adviser for Private Industry and Investment Salman F Rahman. 

"If spot prices do not drop, we will have a challenge with energy," he noted while addressing a discussion session with the leaders of the Overseas Correspondent Association of Bangladesh (OCAB) at the Bangladesh Investment Development Authority (Bida) office in the capital's Agargaon on Saturday.

However, he believes that Bangladesh has so far managed to avert any major crisis regarding energy.

He also said the frequency of load shedding will go down in the coming winter.

Salman F Rahman also highlighted the various measures taken by the government to address the fuel and gas scarcity.

Besides, the government is not considering mining coal, he said, adding, "Even if we start it now, it will take at least 4-5 years for us to benefit from the initiative."  

In coal mining, there are challenges related to climate too, he noted. 

Mentioning that Bangladesh has taken a wait-and-see approach, he said an energy solution may come internationally and then, they will not have to resort to coal.

To mitigate the energy and gas crisis, the government is negotiating with Qatar and India. Besides, talks are going on with different organisations for exploring gas locally, he continued.

Replying to a question, Salman F Rahman said they have not reached any decision regarding fuel import from Russia. 

Even if crude oil is imported from Russia, Bangladesh's Eastern Refinery Ltd has no capacity to refine it, he said.

"There is a sanction on the import of Russian oil, we will not go against it," he continued, adding that the government is bringing in fertilisers and food grains from Moscow with no restrictions on such imports. Bangladesh can now make payments through 24 global banks.

Some 70% of our electricity is generated from gas-based power plants. Spot LNG prices in the international markets have gone up so much that the country cannot afford, the PM's adviser said, adding, "We are trying to get it [LNG] from alternative sources. If Qatar offers us at a lower price going out of the spot market, we will accept it.

"We are getting supplies of LNG under all the long-term contracts we currently have."

Admitting that Bangladesh is not getting the expected amount of foreign direct investment compared to its GDP, he said, "This is happening due to the current situation of the world. We have to create a more favourable environment to attract more FDI."

Those who made investment commitments have not moved away, he said, adding that Turkey and South Korea have already invested. "Implementation takes time, it is on track," he added.

Import may fall to $5 billion in August

Salman F Rahman said the government has focused on import control rather than raising bank interest rates. 

Imports that stood at $9 billion in January might reduce to a little more than $5 billion in August, he noted. 

In response to a question, he said if the interest rates are raised, the industry will suffer. 

Besides, dollar prices will also come down soon, he hoped.

Overseas Correspondents Association of Bangladesh Convener Kadir Kallol, Member Secretary Nazrul Islam Mithu and representatives of various international media houses, currently working in Bangladesh, were present at the programme.