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Newly installed industries in Ctg to get gas from Nov

FE Report | Tuesday, 29 July 2008


The gas-starved industries in Chittagong region would start getting gas supply from September this year as the government has undertaken urgent measures to produce additional gas for the port-city, officials said.

The city would also get enhanced electricity as the power plants would be getting additional gas to produce power, the committee constituted recently to mitigate energy crisis in Chittagong decided Monday.

"Industries that already have obtained permission for gas connection and have invested in their projects would get gas connections on priority basis," said a member of the committee.

The committee headed by commerce adviser Hossain Zillur Rahman in its first meeting held in the Chittagong Circuit House also decided, in principle to shift the head office Bakhrabad Gas System Limited (BGSL) to Chittagong from Comilla in line with the local demand.

The government has taken measures to produce additional gas from the Irish oil company Tullow operated Bangura gas field by 20 million cubic feet per day (mmcfd) and supply those to the gas hungry industries in the port city.

Of the additional 20 mmcfd of gas the industrial units would get 10 mmcfd and power plants would get the remaining 10 mmcfd to generate electricity.

"A 50 megawatt (MW) rental power plant would also be installed in Chittagong within next six to nine months for meeting the mounting electricity crisis there," the committee decided.

The government would not specify the source of fuel for the rental power pant and the sponsor would have his own choice to arrange fuel to generate electricity from the rental power plant, the committee member said.

The committee to mitigate Chittagong''s energy crisis was constituted recently following the Chief Adviser's intervention.

The BGFL has stopped supplying gas supply to new industries since November last year because of non-availability of the same.

Over 150 applications have remained pending with the BGFL since November last year seeking gas connection for industrial use, the company sources said.

Currently the BGSL is supplying around 270 mmcfd gas in the Chittagong region against the demand for 360 mmcfd.

Electricity generations in Rauzan and Shikalbaha power plants are being affected badly due to inadequate gas supply.

Production at Karnaphuli Fertiliser Company (Kafco) and Chittagong Urea Fertiliser Limited (CUFL) is also being hampered due to gas supply shortage.

Energy ministry officials said the substantial fall in gas production in the country's lone offshore - Sangu - since last year has resulted in acute gas crisis in Chittagong.

Gas production from Sangu dropped Monday to 54mmcfd, less than one-third of its average daily production of 172 mmcf during 2006.

Delay in installing the much-needed gas compressors in the gas grid line also deepened the gas crisis in Chittagong for years.