Gas and power sectors-bad news galore
Wednesday, 23 July 2008
THE people are used to hearing bad news, such as rise in load-shedding, closure of one or two power units, national grid failure and, thus, all about the power sector. But they were, possibly, not prepared to what was divulged by none other than the person in-charge of the power and energy ministry, Prof. M. Tamim, early this week. He made the disclosure to the effect that the government would not be able to take up any new gas-fired power plants because of gas supply shortage and that it might even be forced to stop implementation of some ongoing power plants for the same reason. This must have come as a rude awakening to all concerned, including those who had expected some improvement in power situation under the present caretaker administration.
Until recently, a variety of factors, including fund shortage and massive corruption by the past governments, were held responsible for the present deplorable situation in the power sector. But from the statement of Prof. Tamim, it now transpires that even if there was will, there was no way to generate additional power. Thus, even if the government had arranged funds to set up power plants, the scarcity of gas would have stalled power generation projects. However, the special assistant blamed the shortage of skilled manpower more than anything else for the present state of affairs in the country's gas and power sectors. In this context, he said over the last 10 years, only one gas field, having a reserve of 500 billion cubic feet (bcf) could be discovered at Bangura. However, some people might feel tempted to blame the policymakers' apathy towards taking expeditious decision and using the local expertise, particularly for onshore exploration work for taking the situation to such a state.
This blame-game, however, would not anyway help to tide over the problems in power and gas sectors on which depend almost all major economic activities. The economy would not be able to sustain the gains achieved so far or make progress at the desired level if additional power is not added to the national grid to meet the current deficit and leave surplus for consumption by new industries. Any failure in this respect would also mean failure in achieving the goal of cutting down poverty. The energy and power ministry, reportedly, under the instruction from the chief adviser, has asked the Petrobangla and the Power Development Board (PDB) to identify the worn-out power plants, which consume gas more than necessary but produce electricity well below their respective capacities, and to help devise out action plans to divert the gas meant for those to more efficient power plants. This is, no doubt, a piecemeal measure but can be tried under the prevailing circumstances. However, the people concerned would have to do a little bit of arithmetic to know the gains and losses before embarking on such a scheme.
This paper published a report coinciding with the unpleasant disclosure made by Prof. Tamim on power and gas sectors. The report in question said that the state-owned gas exploration company--Bapex-is failing to utilise nearly 1.0 trillion cubic feet gas reserve discovered at Shabazpur, Bhola. It has turned out to be uneconomic to install pipeline to take out Shabazpur gas to other parts of the country. So installation of gas-fired power plants and gas-based industries in Bhola remains to be the best way to utilise the reserve. Reportedly eight years back, the BPDB had asked the Petrobangla to ensure gas supply for installation of a 150 megawatt power plant in Bhola. The latter obliged and developed two wells at Shabazpur for the purpose. But the power plant still remains a distant dream. So, in many cases, as the current developments suggest, it is lack of will -- not gas shortage that is the main hindrance. Instead of giving rise to further frustration about gas and power sectors, the administration should make some strong moves to ensure some tangible changes in the situation on the ground.
Until recently, a variety of factors, including fund shortage and massive corruption by the past governments, were held responsible for the present deplorable situation in the power sector. But from the statement of Prof. Tamim, it now transpires that even if there was will, there was no way to generate additional power. Thus, even if the government had arranged funds to set up power plants, the scarcity of gas would have stalled power generation projects. However, the special assistant blamed the shortage of skilled manpower more than anything else for the present state of affairs in the country's gas and power sectors. In this context, he said over the last 10 years, only one gas field, having a reserve of 500 billion cubic feet (bcf) could be discovered at Bangura. However, some people might feel tempted to blame the policymakers' apathy towards taking expeditious decision and using the local expertise, particularly for onshore exploration work for taking the situation to such a state.
This blame-game, however, would not anyway help to tide over the problems in power and gas sectors on which depend almost all major economic activities. The economy would not be able to sustain the gains achieved so far or make progress at the desired level if additional power is not added to the national grid to meet the current deficit and leave surplus for consumption by new industries. Any failure in this respect would also mean failure in achieving the goal of cutting down poverty. The energy and power ministry, reportedly, under the instruction from the chief adviser, has asked the Petrobangla and the Power Development Board (PDB) to identify the worn-out power plants, which consume gas more than necessary but produce electricity well below their respective capacities, and to help devise out action plans to divert the gas meant for those to more efficient power plants. This is, no doubt, a piecemeal measure but can be tried under the prevailing circumstances. However, the people concerned would have to do a little bit of arithmetic to know the gains and losses before embarking on such a scheme.
This paper published a report coinciding with the unpleasant disclosure made by Prof. Tamim on power and gas sectors. The report in question said that the state-owned gas exploration company--Bapex-is failing to utilise nearly 1.0 trillion cubic feet gas reserve discovered at Shabazpur, Bhola. It has turned out to be uneconomic to install pipeline to take out Shabazpur gas to other parts of the country. So installation of gas-fired power plants and gas-based industries in Bhola remains to be the best way to utilise the reserve. Reportedly eight years back, the BPDB had asked the Petrobangla to ensure gas supply for installation of a 150 megawatt power plant in Bhola. The latter obliged and developed two wells at Shabazpur for the purpose. But the power plant still remains a distant dream. So, in many cases, as the current developments suggest, it is lack of will -- not gas shortage that is the main hindrance. Instead of giving rise to further frustration about gas and power sectors, the administration should make some strong moves to ensure some tangible changes in the situation on the ground.