Embargo on gas supply to new areas until output reaches 2200mmcfd
Monday, 3 August 2009
The government has decided in principle not to include any new area under the gas-supply network until the daily production increases up to 2200 million cubic feet per day (mmcfd), reports UNB.
Energy and Mineral Resource Division of the Ministry of Power, Energy and Mineral Resources recently wrote to the ministries concerned regarding the embargo.
The letter, signed by deputy secretary AK Mahiuddin Ahmed, says that fresh gas connections to new areas will not be entertained except for government's earlier pledge for supply of gas.
In the letter it is also stated that importance will be given to the use of alternative energy and expansion of alternative energy sources for power sector and other industries to avert dependence on gas.
The natural gas, a precious national wealth, is also getting costlier for price rises-the latest being on Saturday.
In the letter Mr Ahmed mentioned that these two steps were being taken as additional measures besides the short, medium and long-term development projects of Petrobangla to resolve the gas crisis in the country.
At present, the country produces about 1,800 million cubic feet of gas per day against a demand for 2,300mmcfd.
Business leaders expressed their resentment regarding the embargo and said this would create frustration among the investors, both local and foreign.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Annisul Huq said using dual fuel in the industries would not be a good source for power and the cost involved would hinder the local industries from being competitive.
He said that the apex trade body was not aware of such decision of the government and said the government should talk with the private sector before taking such a decision.
Energy and Mineral Resource Division of the Ministry of Power, Energy and Mineral Resources recently wrote to the ministries concerned regarding the embargo.
The letter, signed by deputy secretary AK Mahiuddin Ahmed, says that fresh gas connections to new areas will not be entertained except for government's earlier pledge for supply of gas.
In the letter it is also stated that importance will be given to the use of alternative energy and expansion of alternative energy sources for power sector and other industries to avert dependence on gas.
The natural gas, a precious national wealth, is also getting costlier for price rises-the latest being on Saturday.
In the letter Mr Ahmed mentioned that these two steps were being taken as additional measures besides the short, medium and long-term development projects of Petrobangla to resolve the gas crisis in the country.
At present, the country produces about 1,800 million cubic feet of gas per day against a demand for 2,300mmcfd.
Business leaders expressed their resentment regarding the embargo and said this would create frustration among the investors, both local and foreign.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Annisul Huq said using dual fuel in the industries would not be a good source for power and the cost involved would hinder the local industries from being competitive.
He said that the apex trade body was not aware of such decision of the government and said the government should talk with the private sector before taking such a decision.