Govt moves to set up compression stations again to boost gas flow

---

M Azizur Rahman
The government has moved again to install the much-needed compression stations to boost natural gas transmission across the country with a fresh momentum as the Asian Development Bank (ADB) has almost doubled its committed funds, said a top official.
State owned Gas Transmission Company Ltd. -- the sole authority for transmitting country's natural gas - has already floated tender and would be receiving bids until August 19 to install two compression stations at Ashuganj and Elenga, a senior energy ministry official told the FE.
He said the ADB, the financier of these projects, has raised its funding commitment to US$ 100 million from the previous $55 million for completing installation of the compression station projects.
The multilateral donor agency's previous $55 million funding commitment was for installation of three compression stations in Muchai, Ashuganj and Elenga areas.
The GTCL had subsequently floated tenders twice but failed to award works as the quoted bids were much higher than the project allocations.
"This time ADB has increased its allocation by $45 million to complete installation of two compression stations instead of previous three," said a senior Petrobangla official.
The remaining compression station at Muchai would be built by US oil giant Chevron at a cost of $52 million as Petrobangla and Chevron reached consen -sus in this connection.
Chevron has already started installation of the compression station after debates over awarding of the project work and is expected to complete it by 2012.
For Ashuganj and Elenga compression stations the GTCL has set a target to complete installation of the stations within 21 months from the date of signing agreements.
"The previous tenders to install the compression stations did not bear fruit due to inadequate funding," GTCL Managing Director Aminur Rahman told the FE.
"But I am hopeful of a successful result this time," he said.
Officials said the GTCL initially pointed out in 2004 the necessity for setting up all the three compression stations in 2004.
The ADB approved US$ 55 million in 2006 for completion of Muchai, Ashuganj and Elenga compression stations and the GTCL had floated tenders in 2006 and 2008 respectively but failed to award contracts.
The delayed installation of compression stations has led to the deterioration of the already acute gas crisis in the port city Chittagong, the officials said.
The country is now reeling under an acute energy crisis as the gas supply shortage is now around 500 million cubic feet per day (mmcfd) of gas, which is soaring rapidly.
The extent of gas supply crunch differs from one area to another area as the country's transmission network is not capable of carrying gas sufficiently with required pressure to the user ends.
The country has sufficient gas supplies in the north-east region where most of the producing gas fields are located.
Due to transmission constraints the gas from the north-east region not being supplied to the country's south-east region, where the crisis is more acute.
Also, low gas pressure, caused by the absence of compressors, is impeding industrial production and electricity generation, and scores of industries across the country are already feeling the pinch after having invested heavily in their units.
Installation of these gas compressors and setting up of necessary transmission pipelines would ensure smooth supply of gas across the country.
Bangladesh is now producing around 1,980 mmmcfd of gas against the demand for over 2,480 mmcfd.