Reducing Gas Sector System Loss To 2% Impossible With Old Network

The system loss in the country's natural gas supply chain, which is much higher than standards or of neighboring countries, has been in discussion over the past decade or so.

- Aditya Hossain

Experts observe that non-technical loss, mainly theft and pilferage, is of much higher proportion. Media reports suggest that the system loss after rising to 10-11% declined to 9.5% in February 2024. Experts say that if the loss can be halved through efficient system management, it could lead to saving 120-130 MMCFD of gas, which can be a huge relief at a time of chronic gas crisis.

Sector insiders, however, claimed that all the non-technical losses are not theft and pilferage. Gas pipelines using carbon steel are usually designed for an economic life of 25-30 years. In the distribution networks of Titas Gas (TGTDCL), some pipelines are 50-60 years old. In the congested city areas, some pipelines are now buried at 8-10 meters depth and are leaking methane profusely. This is not only causing financial losses but also making the system vulnerable to gas-related accidents. Apart from this, it is causing GHG emission.

Officials claim it would not be an objective assessment that all losses beyond technical limits is theft. In the distribution areas of Titas Gas, 40-60-year-old decaying pipelines are still in use, causing massive leaks that release gas into the air, not only resulting in financial losses but also contributing to increased methane pollution.

During a meeting at the Energy Division on April 16, distribution companies informed Energy Adviser Dr. Muhammad Fouzul Kabir Khan that the system loss has started declining and is expected to come down to 4% by 2026. A national daily reported that Bangladesh's system loss is three times higher than India and nearly double that of Pakistan. Due to increasing losses in transmission and distribution, the gas sector in Bangladesh incurs an annual financial loss of $1.0 billion (estimated based on LNG import costs). Leaks in old pipelines, theft, and unplanned infrastructure are the main reasons for these losses.