Gas shortage makes Bheramara power project uncertain
Thursday, 26 March 2009
FHM Humayan Kabir
Installation of the planned 450-megawatt (mw) power plant at Bheramara has become uncertain as the Petrobangla has failed to give assurance about the supply of gas before 2016, officials said Wednesday.
"When we had requested Japan to provide fund for the project, it assured us of making adequate fund available. But now the problem of gas has made implementation of the project uncertain," a power division official told the FE.
A mission from the Japan International Cooperation Agency (JICA) last week discussed the issue with the government where officials form power and energy and finance ministries were present.
"In the last meeting, we sought guarantee relating to the supply of gas for the proposed plant. The government has failed to confirm availability of gas before 2016," an official of the JICA office in Dhaka told the FE.
"Now we have to consider whether we would finance the project or not, he added.
The Japanese donor agency assured the government of providing nearly $400 million for the Bheramara power plant, planned to be established by the financial year 2014.
The JICA official said they have already completed a feasibility study of the power project. "Due to shortage of gas, the study has recommended for setting up 360mw plant instead of earlier planned 450mw."
The 360mw combined cycle power plant at Bheramara in Kushtia will consume nearly 55-million cubic feet of gas per day (mmcfd).
If the government assures us of adequate gas supply within the project tenure, we are still ready to finance the power plant, the JICA official said.
The power division official said there are trying to go ahead with the project obtaining gas supply assurance from the state-owned Petrobangla.
Bangladesh is facing a power shortage of about 1400mw in the peak hours every day.
The power division officials said JICA had suggested closure of some old and obsolete power units which are consuming more gas and giving less output.
Efficiency rate of some aged power plants have come down to only 20 to 25 per cent.
"We are now considering JICA's proposal. If we can send some power units into retirement, a substantial quantity of gas would be save. Those will be diverted to the proposed Behramara power plant," he said.
The gas supply shortage has already reduced the power generation capacity by nearly 650mw of the country's existing power plants.
The state-owned power development board (PDB) claimed they were getting only 700-million cubic feet of gas per day (mmcfd) against the demand for over 900mmcfd to run their power plants.
Bangladesh's 80 per cent power plants utilise natural gas as their fuel to generate electricity.
Installation of the planned 450-megawatt (mw) power plant at Bheramara has become uncertain as the Petrobangla has failed to give assurance about the supply of gas before 2016, officials said Wednesday.
"When we had requested Japan to provide fund for the project, it assured us of making adequate fund available. But now the problem of gas has made implementation of the project uncertain," a power division official told the FE.
A mission from the Japan International Cooperation Agency (JICA) last week discussed the issue with the government where officials form power and energy and finance ministries were present.
"In the last meeting, we sought guarantee relating to the supply of gas for the proposed plant. The government has failed to confirm availability of gas before 2016," an official of the JICA office in Dhaka told the FE.
"Now we have to consider whether we would finance the project or not, he added.
The Japanese donor agency assured the government of providing nearly $400 million for the Bheramara power plant, planned to be established by the financial year 2014.
The JICA official said they have already completed a feasibility study of the power project. "Due to shortage of gas, the study has recommended for setting up 360mw plant instead of earlier planned 450mw."
The 360mw combined cycle power plant at Bheramara in Kushtia will consume nearly 55-million cubic feet of gas per day (mmcfd).
If the government assures us of adequate gas supply within the project tenure, we are still ready to finance the power plant, the JICA official said.
The power division official said there are trying to go ahead with the project obtaining gas supply assurance from the state-owned Petrobangla.
Bangladesh is facing a power shortage of about 1400mw in the peak hours every day.
The power division officials said JICA had suggested closure of some old and obsolete power units which are consuming more gas and giving less output.
Efficiency rate of some aged power plants have come down to only 20 to 25 per cent.
"We are now considering JICA's proposal. If we can send some power units into retirement, a substantial quantity of gas would be save. Those will be diverted to the proposed Behramara power plant," he said.
The gas supply shortage has already reduced the power generation capacity by nearly 650mw of the country's existing power plants.
The state-owned power development board (PDB) claimed they were getting only 700-million cubic feet of gas per day (mmcfd) against the demand for over 900mmcfd to run their power plants.
Bangladesh's 80 per cent power plants utilise natural gas as their fuel to generate electricity.