As the Gulf crisis worsens, Bangladesh and Pakistan are affected by energy disruption

Parvin Akter, the chef of Dhaka in Bangladesh's capital, adjusts her cooking according to the availability of gas pipes in the area. Due to a global energy crisis, gas is now intermittently available. She sometimes has to wait till midnight to prepare her meal.

Even switching to an Induction Cooker has not helped as power outages can often leave food uncooked.

In Pakistan, more than 2,000 km (1,200 miles), on the other side South Asia, the government?started? a fuel subsidy on Wednesday in order to reduce the sharp increase in fuel prices.

The program isn't working well. Vehicle owners must register to receive the subsidy. Mohammad Musharraf from Karachi says that he spent several days trying to register his motorcycle with the ID card number.

You must first register your car. You must then register your mobile. "How can an illiterate survive in such a difficult environment?"

The US and Israel attacked Iran six months ago, causing the Strait of Hormuz to be closed for oil and gas. Saudi Arabia's fight with the Iran-backed Houthis is also threatening trade in the Red Sea.

This week, Asian spot LNG prices have risen to $30 per million British Thermal Units, the second spike of the year. They were about $10 before World War II.

Shell says that the Middle East has lost 36 million tons of LNG so far this season. The shortage is especially bad in countries with limited financial resources to intervene.

The shortfall in Bangladesh has led to blackouts and the shutdown of factories. Pakistan and other nations in the region rush to calm public anger by introducing subsidies quickly.

BANGLADESH AT NIGHT

Bangladesh imports more than 40% its electricity, and the disruptions of Qatari LNG deliveries - which accounted for 95% of these imports at one time - forced Dhaka into chasing costlier cargoes to the spot market. Iqbal Hasan Mahmud, Power Minister of Bangladesh, said that industrial growth was slowing and production was decreasing.

Orders in the garment industry, which is the largest export of the country, show signs of strain. The BKMEA, a trade group that represents knitwear manufacturers, conducted a survey in which 55% of the factories reported cancellations or reductions of orders due to gas and electricity shortages. 78% of the factories had halted partial production.

A boiler that was ruined by low gas pressure in the middle of a production process forced Alvi Islam, owner of one factory, to purchase fabric from China. This delay caused a buyer who had ordered 50,000 pieces to reduce it to 40,000.

Other companies had to incur additional costs after production delays due to energy shortages forced them to ship finished products via plane in order to meet deadlines. Fazlee Shamim Ehsan, a garment industry executive, said that his factory was forced to pay $50,000 for air freight of hoodie coats to a French customer.

Ehsan is the managing director at Fatullah Apparels Ltd.

Sayedul Islam, a poultry farmer in Tangail City, said that power outages were killing up to 20 of his chickens a day as he could not run the electric fans required to cool his "sheds".

Even hospitals are not spared. Power cuts are almost an hourly occurrence at the hospital in Sylhet. Generators can keep intensive care units going, but they are not always enough to ventilate wards, so patients have to deal with heat in crowded, crowded rooms.

The government said that it was seeking solutions. Fazlul H. Hoque, Federation of Bangladesh Chambers of Commerce and Industry, cited a directive that would fix an?inoperative LNG terminal' and help unload more tankers.

Gas supplies have increased in recent weeks, according to some, including Ehsan the business owner.

GRIDS AND GASTANKS

Pakistan's electricity grid is experiencing a?milder version of this strain. Officials are attempting to avoid a repeat of the early business closings that were enforced in April.

Data from the Independent System and Market Operator shows that Pakistan's power sector needs up to 400 million cubic foot of gas per day during winter. Only two LNG cargoes have been confirmed for September. A standard Pakistan LNG shipment is approximately 140,000 cubic metres. This is equivalent to about 3 billion cubic foot of gas or just under a week's worth.

Masood Nab, CEO of the state-owned importer Pakistan LNG at Gastech, stated that while solar power has helped ease some of Pakistan's power crisis in recent years, it is still necessary to provide gas for households and other sectors.

Transport fuel prices is the more immediate issue in Pakistan.

Prime Minister's Fuel Relief Scheme, which went into effect on Wednesday night, offers motorcycle, small car and rickshaw owners a subsidy worth 100 rupees per litre (36 cents US) on a monthly quota. This is after petrol prices rose to around 380 rupees a litre ($1.37) and diesel at 409 Pakistani Rupees ($1.48). These are heavy costs in a nation where the minimum salary is $145.

It's not enough, say business leaders and workers.

Amesh Gul said, "We used to consume meat every week, but it's now difficult to afford even once a monthly," a Karachi rickshaw driver whose income was affected by the rising fuel price. "All I ask the government to do is take care of the poor."

(source: Reuters)