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Titas proposes Tk 81b project to reduce gas wastage

JAHIDUL ISLAM | May 15, 2025 00:00:00


Titas Gas Transmission and Distribution PLC wants to implement an ambitious Tk 81.61 billion project to reduce gas wastage by installing around 2,781 kilometres of new distribution lines and upgrading 5,000 kilometres of existing ones in the Dhaka, Gazipur, and Narayanganj city corporation areas.

The New Development Bank (NDB), established by the BRICS alliance of emerging economies, will provide loan support of Tk 33.53 billion, around $280 million, for the project, according to sources at the Planning Commission and the Economic Relations Division (ERD).

NDB earlier pledged a $1.0 billion loan package for Bangladesh. The proposed project would be the second initiative under the package, following the approval of $320 million for the "Expanded Dhaka City Water Supply Resilience Project", said an ERD official.

Planning Commission officials said the Energy and Mineral Resources Division (EMRD) recently submitted a proposal for the project titled "Replacement and Improvement of the Existing Gas Network in Dhaka and Narayanganj City Corporation Area Incorporating GIS Mapping and SCADA System."

Under the proposed financing structure, the government will contribute Tk 39.87 billion from its exchequer, while the remaining Tk 8.21 billion will come from the internal resources of Titas.

The Industry and Energy Division of the Planning Commission has scheduled a meeting of the project evaluation committee (PEC) for next week to review the proposal.

The working paper prepared to be placed at the meeting reveals the project aims to enhance gas supply capacity from 275 million cubic feet per day (MMCFD) to 1,008 MMCFD by installing 2,781.46 kilometres of pipelines, catering to both the existing and future customers in Dhaka, Gazipur, and Narayanganj city corporation areas, thereby addressing the persistent low-pressure issue.

The project will also help reduce carbon emissions to 0.50 million tonnes of carbon dioxide-equivalent (CO2-e) per year from the current 2.06 million tonnes, as well as cut gas leakage incidents to 66 per month, down from the present 333, according to the proposal.

Moreover, the project will modernise the gas distribution network of Titas through 5,500 kilometres of geographic information system (GIS) mapping and the installation of SCADA system encompassing 18 gas stations.

About 73.33 per cent of Titas clients would be benefitted from the project, claimed the EMRD in the document.

The EMRD has proposed implementing the project over a period of five years and a half, from July this year to December 2030.

However, the Planning Commission is expected to seek justification for the extended project duration, as its latest instructions recommended a standard implementation period of three years for development projects.

In the PEC meeting, the commission is expected to recommend increasing contributions from Titas to implement the project as Tk 39.87 billion would be a significant burden on the government exchequer.

The meeting is also expected to request detailed information on the status of the ongoing and completed projects undertaken by Titas with foreign loans, including loan amounts, repayments, and outstanding balances.

The project document reveals Titas currently operates 13,421.45 kilometres of pipelines and serves over 2.88 million customers.

Natural gas supply to the Dhaka city began with the construction of the Demra City Gate Station in 1967. Most of the distribution lines were built during the 1970s and 1980s and were originally designed to meet the demand for 30 years.

Over the decades, these pipelines have deteriorated and sustained additional damage from the construction of utility lines by various service providers. As a result, the cathodic protection system has been compromised, leading to significant gas leakages.

These leakages have triggered fire incidents and pose serious threats to public safety and infrastructure.

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