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Gas output surpasses capacity as govt opts for short-term solution

M Azizur Rahman | Monday, 2 March 2009


The country's gas production exceeded capacity Sunday as the authorities exerted extra pressure on the system to make sure plants get adequate energy supply for power generation, officials said.

Petrobangla officials said gas production from the country's total 18 operational gas fields hit 1,881 million cubic feet a day (mmcfd) against their total production capacity of 1,870 mmcfd.

Main gas consumers such as power plants, industrial units, boilers, fertiliser factories and cooking burners, however, consumed 1,862 mmcfd of gas with 19mmcfd remained unutilised.

Gas output by international oil companies (IOCs) accounted for 968 mmcfd or 51.46 per cent of the total generation while the state-owned local companies produced 912 mmcfd.

Experts said the excess output was the result of Petrobangla's apparent adoption of short-term solution at the cost of the country's long term energy future.

Petrobangla chairman Jalal Ahmed admitted that gas production beyond the capacity might prove costly in the long run as it would damage field structure, resulting in significant output slump in future.

But he said the ongoing power crisis has made them desperate.

"We have augmented gas production to cope with mounting gas demand across the country, especially to feed power generation plants," he told the FE Sunday.

Currently, the Petrobangla is supplying gas more than it has committed to the Power Development Board (PDB) for electricity generation.

The PDB has been failing to consume additional gas due to delays in commissioning a number of small independent power plants (SIPPs) and rental power plants (RPPs), Ahmed said.

The Board had sought an augmented gas supply by around 70 mmcfd from the Petrobangla since last month to feed some eight new SIPPs and RPPs.

Petrobangla subsequently enhanced gas production by around five per cent to feed the newly commissioned gas-fired power plants.

PDB said the extra supply was not enough to meet its daily demand. On Sunday, it had to halt production at plants producing 440 megawatts (mw) due to the shortage of gas supply, the board said.

In addition, power generation units having generation capacity of 935MW are in being overhauled and on regular maintenance.

The country has been facing an acute crisis of gas since 2007 which has hit scores of industrial plants especially in the port city of Chittagong where projects worth billions of taka could not start operation.

The government forecasts the nation's current gas reserves will run out by 2014-2015 at present rate of consumption.

The country's economy has been growing at an average six per cent in the last four years, leading to the gas crisis, which now stands at around 250mmcf a day.