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KAFCO resumes production

Monday, 10 May 2010


FE Report
The Karnaphuli Fertiliser Company Ltd (KAFCO) has resumed commercial operation as the state-owned Petrobangla began supplying gas to the factory, officials said Sunday.
The joint venture multinational fertiliser producer went on full operation from Sunday after facing closure for over a month making way for gas-guzzling power plants to operate during the just concluded irrigation season.
It consumed around 53 million cubic feet (mmcf) of gas Sunday to restart fertiliser production in the plant, a senior Petrobangla official said.
State-owned Bangladesh Chemical Industries Corporation (BCIC) also sought resumption of gas supplies to three of its fertiliser factories to begin production.
The government had shut five fertiliser factories along with KAFCO on March 29 last to divert gas to power plants and boost electricity generation and ease the country's mounting electricity demand during peak summer season.
Petrobangla diverted around 110 mmcf of gas daily to restart electricity generation mainly in Rawzan, Shikalbaha and Baghhabari power plants, which remained idle for long due to lack of gas supply.
But the power supply situation did not improve much despite closure of the fertiliser factories, energy ministry officials said.
Industrial units, commercial outlets and households, however, were benefited from the closure of the fertiliser factories, he said.
Bangladesh Power Development Board (BPDB) could not take the additional gas as the country does not have any dedicated gas pipeline for power plants.
The BCIC in a letter to the energy ministry last week requested immediate resumption of gas supply to Chittagong Urea Fertiliser Ltd (CUFL), Urea Fertiliser Factory (UFF) and Polash Urea Fertiliser Factory (PUFF).
"We have urged for supplying gas to our factories to meet the local fertiliser demand for next Aman irrigation season," a BCIC top official said.