No govt plan for new gas connections now
M Azizur Rahman | Thursday, 17 March 2011
M Azizur Rahman
The government has no immediate plan to provide gas connections to new clients as the state-owned Petrobangla is struggling hard to maintain regular gas supplies to existing ones, a top government official said. "We don't see any scope for resumption of new gas connections shortly," Petrobangla chairman Dr Hussaim Monsur told the FE Wednesday. He said the country's average daily gas supply is now hovering around 2000 million cubic feet (mmcf) against the demand for over 2,500 mmcf. State-owned gas marketing and distribution companies are now flooded with thousands of applications seeking gas connections across the country. Industrial sector is bearing the brunt of the gas connection suspension, which came into effect since July 2009, industry insiders said. Gas connections to households remained halted since July 2010, said an official of Titas Gas Transmission and Distribution Company Ltd (TGTDCL). He said Titas, the country's largest gas marketing and distribution company, has around 500 applications pending before it from industrial sector alone for new gas connections. Besides, people are not showing any interest to file fresh applications now due to apathy of the government to provide new connections. Country's industrial growth is being hampered badly due to the suspension of new gas connections resulting in poor response for fresh investments in industrial sectors. Newly built houses including those by the members of Real Estate and Housing Association (REHAB) remained vacant for around a year due to gas connection suspension. Although electricity connections resumed in November after a seven-month suspension, a very few customers could get the privilege of having electricity due to imposition of a new condition for setting up solar panels on rooftops to get new connections. "This is ridiculous," said an aspirant for new gas connections. The government has kept us waiting for years to get new gas connections without any prior warning. "We have put our hard earned money along with bank loans to set up industry. But it is now kept nonfunctional due to non-availability of gas," he lamented. Energy ministry earlier decided that new gas connections would resume only when the country's overall gas supply crosses 2200 mmcfd mark. But achieving gas supply to that level now appears a distant dream as a government drive to augment supplies on fast-track basis 'failed' recently. Immediately after taking office the government moved to drill five gas wells of state-owned gas fields by foreign firms. After two years of tendering process the bid winner, Polish Krakow, pulled out from signing deals to drill wells. "Petrobangla's two years' home work on 'fast-track' project went in vain due to Krakow's pullout," said a Petrobangla official. Continued slump in gas production from the country's lone offshore Sangu gas field worsened the situation further. Australian Santos-operated Sangu gas field is now producing a mere 11 mmcfd of gas, down from its peak production level of around 200 mmcfd several years ago. Government's latest drive to import liquefied natural gas (LNG) and supply piped gas after re-gasification is also being delayed due to procedural bottlenecks. Petrobangla projected that unless new gas fields are discovered country's present supply of gas will start diminishing from 2011. It forecasts that the country's current gas reserves will run out by 2014-2015 at current consumption rates. Gas supply shortage has already pushed Petrobangla to ration supplies and introduce holiday staggering in industries and factories. A number of power plants with a total generation capacity of around 600 megawatts are currently not operating due to gas crisis. Compressed natural gas (CNG) filling stations are remaining closed for several hours a day to cope with the gas supply shortfall.
The government has no immediate plan to provide gas connections to new clients as the state-owned Petrobangla is struggling hard to maintain regular gas supplies to existing ones, a top government official said. "We don't see any scope for resumption of new gas connections shortly," Petrobangla chairman Dr Hussaim Monsur told the FE Wednesday. He said the country's average daily gas supply is now hovering around 2000 million cubic feet (mmcf) against the demand for over 2,500 mmcf. State-owned gas marketing and distribution companies are now flooded with thousands of applications seeking gas connections across the country. Industrial sector is bearing the brunt of the gas connection suspension, which came into effect since July 2009, industry insiders said. Gas connections to households remained halted since July 2010, said an official of Titas Gas Transmission and Distribution Company Ltd (TGTDCL). He said Titas, the country's largest gas marketing and distribution company, has around 500 applications pending before it from industrial sector alone for new gas connections. Besides, people are not showing any interest to file fresh applications now due to apathy of the government to provide new connections. Country's industrial growth is being hampered badly due to the suspension of new gas connections resulting in poor response for fresh investments in industrial sectors. Newly built houses including those by the members of Real Estate and Housing Association (REHAB) remained vacant for around a year due to gas connection suspension. Although electricity connections resumed in November after a seven-month suspension, a very few customers could get the privilege of having electricity due to imposition of a new condition for setting up solar panels on rooftops to get new connections. "This is ridiculous," said an aspirant for new gas connections. The government has kept us waiting for years to get new gas connections without any prior warning. "We have put our hard earned money along with bank loans to set up industry. But it is now kept nonfunctional due to non-availability of gas," he lamented. Energy ministry earlier decided that new gas connections would resume only when the country's overall gas supply crosses 2200 mmcfd mark. But achieving gas supply to that level now appears a distant dream as a government drive to augment supplies on fast-track basis 'failed' recently. Immediately after taking office the government moved to drill five gas wells of state-owned gas fields by foreign firms. After two years of tendering process the bid winner, Polish Krakow, pulled out from signing deals to drill wells. "Petrobangla's two years' home work on 'fast-track' project went in vain due to Krakow's pullout," said a Petrobangla official. Continued slump in gas production from the country's lone offshore Sangu gas field worsened the situation further. Australian Santos-operated Sangu gas field is now producing a mere 11 mmcfd of gas, down from its peak production level of around 200 mmcfd several years ago. Government's latest drive to import liquefied natural gas (LNG) and supply piped gas after re-gasification is also being delayed due to procedural bottlenecks. Petrobangla projected that unless new gas fields are discovered country's present supply of gas will start diminishing from 2011. It forecasts that the country's current gas reserves will run out by 2014-2015 at current consumption rates. Gas supply shortage has already pushed Petrobangla to ration supplies and introduce holiday staggering in industries and factories. A number of power plants with a total generation capacity of around 600 megawatts are currently not operating due to gas crisis. Compressed natural gas (CNG) filling stations are remaining closed for several hours a day to cope with the gas supply shortfall.