Gas supply uncertainties to hit power production
Sunday, 14 December 2008
Kabir Ahmed
PETROBANGLA, according to recent reports appearing in a section of the media, is now in a position to supply gas to only three of the proposed plants - 450MW Bibiyana independent power plant, 150MW Sylhet and 150MW Bhola plants.
Reportedly, it would supply gas to the under-construction 11 short- and long-term rental power plants and seven out of 10 small independent power plants under construction, which are likely to be commissioned by January, 2009, as per the parastatal's earlier pledge.
But Petrobangla, as the reports further said, would not be able to supply gas in near future to the 450MW Sirajganj IPP, 450MW Meghnaghat-III IPP, 450MW Bheramara power plant, 250MW Dhaka North Power Plant, 360MW Haripur, 210MW Khulna, 150MW Shikalbaha, 150MW Chandpur, 2x150MW Shiddhirganj, 150MW Sirajganj and 150MW Khulna plants, one unit of the under-construction 2x120MW Shiddhirganj plant and three small independent power plants at Feni, Mohipal and Barabkunda.
As far back as in August 2007, Petrobangla had reportedly made the commitment to the Power Development Board in August, 2007 that it would supply gas to these plants between 2009 and 2012. Recently, it backed away from the pledge asking the PDB to defer the projects by at least two to three years until gas supply could be ensured.
Of the power plants, power agencies, as the reports indicated, have already invited tenders for the 450MW Sirajganj IPP, 210MW Khulna and 150MW Chandpur power plants. The government has also reportedly finalised lending agreements with Japan Bank of International Cooperation, Asian Development Bank (ADB) and World Bank (WB) for the 360MW Haripur, 150MW Siddhirganj, 150MW Sirajganj, 150MW Khulna and 2x150MW Siddhirganj plants. It has also awarded contracts to a Chinese company for setting up the 150MW Shikalbaha and three local entrepreneurs for installation of three SPPs.
In August 2007, Petrobangla was also reported to have that it would not make a commitment for gas supply to eight other power plants, including the 450MW Ashuganj power plant, 225MW Shikalbaha plant, 210MW Shiddhirganj second unit, 225MW Ghorashal plant, and 150MW Sylhet Gas Turbine. The Power Division did not proceed with the plants any further following the Petrobangla's decision last year.
Petrobangla said it would supply gas to the proposed power plants in the future if gas production in the country increases and new gas fields are discovered. It currently supplies around 1,780 million cubic feet of gas against a demand for around 2000 mmcfd. Power plants get around 650 mmcfd against the demand for 850 mmcfd.
'It will be a severe blow to the power sector if Petrobangla does not supply gas to the proposed plants. Almost all of our projects have become uncertain which means we will not be able to install plants with a combined capacity of at least 3,000 MW', a PDB official was reported to have said. He reportedly said that these plants were supposed to come into operation by 2012 when the demand for power would be more than 7,500MW.
'At present, we produce around 3,300MW against the demand for around 5,000MW. We can produce around 3,800MW by January 2009 if the small IPPs and rental power plants come into operation and if gas is available to them. But after that, only three power plants may come into operation, according to media reports quoting the PDB official.
Reportedly the Power Secretary does not think Petrobangla's refusal to supply gas to the power plants in the pipeline was final.
'They have requested us to defer some of the projects because of gas shortage at present. We will review their proposals and will sit with government high-ups to discuss what can be done for the power sector'. the energy secretary was furthermore reported to have said at a joint meeting of energy and power divisions that they were forced to request the PDB to defer some projects. 'What else can we do when we are facing a severe gas shortage because of increasing demand for gas in industries and CNG stations', he reportedly pointed out.
Uncertainty now persists over whether most of these would-be projects would get gas once Petrobangla would augment around 300mmcfd of gas by 2012 from different fields.
PETROBANGLA, according to recent reports appearing in a section of the media, is now in a position to supply gas to only three of the proposed plants - 450MW Bibiyana independent power plant, 150MW Sylhet and 150MW Bhola plants.
Reportedly, it would supply gas to the under-construction 11 short- and long-term rental power plants and seven out of 10 small independent power plants under construction, which are likely to be commissioned by January, 2009, as per the parastatal's earlier pledge.
But Petrobangla, as the reports further said, would not be able to supply gas in near future to the 450MW Sirajganj IPP, 450MW Meghnaghat-III IPP, 450MW Bheramara power plant, 250MW Dhaka North Power Plant, 360MW Haripur, 210MW Khulna, 150MW Shikalbaha, 150MW Chandpur, 2x150MW Shiddhirganj, 150MW Sirajganj and 150MW Khulna plants, one unit of the under-construction 2x120MW Shiddhirganj plant and three small independent power plants at Feni, Mohipal and Barabkunda.
As far back as in August 2007, Petrobangla had reportedly made the commitment to the Power Development Board in August, 2007 that it would supply gas to these plants between 2009 and 2012. Recently, it backed away from the pledge asking the PDB to defer the projects by at least two to three years until gas supply could be ensured.
Of the power plants, power agencies, as the reports indicated, have already invited tenders for the 450MW Sirajganj IPP, 210MW Khulna and 150MW Chandpur power plants. The government has also reportedly finalised lending agreements with Japan Bank of International Cooperation, Asian Development Bank (ADB) and World Bank (WB) for the 360MW Haripur, 150MW Siddhirganj, 150MW Sirajganj, 150MW Khulna and 2x150MW Siddhirganj plants. It has also awarded contracts to a Chinese company for setting up the 150MW Shikalbaha and three local entrepreneurs for installation of three SPPs.
In August 2007, Petrobangla was also reported to have that it would not make a commitment for gas supply to eight other power plants, including the 450MW Ashuganj power plant, 225MW Shikalbaha plant, 210MW Shiddhirganj second unit, 225MW Ghorashal plant, and 150MW Sylhet Gas Turbine. The Power Division did not proceed with the plants any further following the Petrobangla's decision last year.
Petrobangla said it would supply gas to the proposed power plants in the future if gas production in the country increases and new gas fields are discovered. It currently supplies around 1,780 million cubic feet of gas against a demand for around 2000 mmcfd. Power plants get around 650 mmcfd against the demand for 850 mmcfd.
'It will be a severe blow to the power sector if Petrobangla does not supply gas to the proposed plants. Almost all of our projects have become uncertain which means we will not be able to install plants with a combined capacity of at least 3,000 MW', a PDB official was reported to have said. He reportedly said that these plants were supposed to come into operation by 2012 when the demand for power would be more than 7,500MW.
'At present, we produce around 3,300MW against the demand for around 5,000MW. We can produce around 3,800MW by January 2009 if the small IPPs and rental power plants come into operation and if gas is available to them. But after that, only three power plants may come into operation, according to media reports quoting the PDB official.
Reportedly the Power Secretary does not think Petrobangla's refusal to supply gas to the power plants in the pipeline was final.
'They have requested us to defer some of the projects because of gas shortage at present. We will review their proposals and will sit with government high-ups to discuss what can be done for the power sector'. the energy secretary was furthermore reported to have said at a joint meeting of energy and power divisions that they were forced to request the PDB to defer some projects. 'What else can we do when we are facing a severe gas shortage because of increasing demand for gas in industries and CNG stations', he reportedly pointed out.
Uncertainty now persists over whether most of these would-be projects would get gas once Petrobangla would augment around 300mmcfd of gas by 2012 from different fields.