System Loss Of Gas In Bangladesh

Unpublished data for 11 months of the latest fiscal year (FY 2024-25) from Petrobangla reveal that the total system loss based on the difference between gas entering the national grid and gas sold to customers is 7.77%.

- Dr. Ijaz Hossain

Of the many problems plaguing the energy sector, unaccounted-for gas (UFG) or system loss is certainly a significant one. It constitutes a direct financial loss at a time when the government has to provide subsidies, and does not have enough foreign currency to purchase LNG. System loss is an age-old problem in Bangladesh, as it is in many developing countries.

Unpublished data for 11 months of the latest fiscal year (FY 2024-25) from Petrobangla reveal that the total system loss based on the difference between gas entering the national grid and gas sold to customers is 7.77%. If this is the only loss, it wouldn't be too bad. The problem arises with the hidden loss in the domestic or residential sector. Since this sector is predominantly unmetered and consumers pay a flat fee according to the number of burners, the question that logically arises is: how is the amount of gas consumed by this sector determined? The gas shown as consumed is calculated using a hypothetical consumption per burner. The data from the gas consumption of metered customers indicate that this figure is an overestimation. Petrobangla, in their annual gas consumption data for FY 2023-24, has shown a gas consumption of 11% in this sector. Knowledgeable insiders strongly believe this cannot be more than 8%. Therefore, nearly 3% gas is unaccounted-for (UFG). This UFG is in addition to the 7.8% normally shown in annual reports. Thus, the actual gas loss exceeds 10%.