Plan to boost gas supply to Ctg by May
Sunday, 26 April 2009
FHM Humayan Kabir
Petrobangla would supply an additional 30-million cubic feet of gas to energy-starved Chittagong by May but manufacturers in the port city said they see no improvement of the energy crisis.
Petrobangla director Yousuf Ali Talukder said the additional amount would be supplied from the Bakhrabad and Bangura gas fields, where the state-owned energy company last month started work to ramp up production.
"Development work in the two gas-fields is going on in full swing and would end next month. We can supply 15mmcf additional gas from each of the two fields," he told the FE.
Talukder said the new gas would help improve growing energy crisis in the port city where at least 200 manufacturing plants remained idle due to lack of gas to fire their generators and boilers.
The gas crisis has halted new investment in Chittagong and discouraged foreign investors who sought to locate their sick units from south-east Asia to Bangladesh's southeastern coastal region.
The port city first experienced a major gas shortfall in 2007 after production in the country's lone offshore field, Sangu, declined to about 53mmcfd from its original capacity of 120 mmcfd.
In November that year, the Petrobangla stopped supplying gas to new industrial units, saying they see no prospect of any dramatic improvement of the country's gas production situation.
Power generation in Chittagong region has also been hard hit due to gas supply shortage.
Talukder said the additional gas would be supplied to two state-owned power plants and a private plant at Chittagong Export Processing Zone.
Malancha Holdings Ltd. (MHL)-an enterprise of United Group-installed a 40mw gas-fired power plant at CEPZ in 2008, but it could not start electricity generation owing to the gas crisis.
"In addition to the three power plants, we can also ensure supply to some new factories," he said.
Chittagong chamber vice president M.A Salam said the new supply is 'very insignificant' to meet the demand of energy-starved local entrepreneurs.
"In our estimates, Chittagong is facing a daily shortfall of 60 mmcf gas a day, which is around 20 per cent of our total demand. The new gas from Petrobangla won't help us that much because bulk of the supply would be consumed by power plants," Salam said.
He said some 200 factories worth several hundred million dollars have failed to start operation due to the gas crisis. "The authorities should give an extra effort to ensure supply to these affected companies," he said.
Petrobangla said it has already cut gas supply to gas-fired Raozan and Sikolbaha power plants in Chittagong to help out some of the manufacturers.
The two power stations require nearly 105mmcfd of gas to produce electricity but they are receiving only 39mmcfd of gas.
Petrobangla would supply an additional 30-million cubic feet of gas to energy-starved Chittagong by May but manufacturers in the port city said they see no improvement of the energy crisis.
Petrobangla director Yousuf Ali Talukder said the additional amount would be supplied from the Bakhrabad and Bangura gas fields, where the state-owned energy company last month started work to ramp up production.
"Development work in the two gas-fields is going on in full swing and would end next month. We can supply 15mmcf additional gas from each of the two fields," he told the FE.
Talukder said the new gas would help improve growing energy crisis in the port city where at least 200 manufacturing plants remained idle due to lack of gas to fire their generators and boilers.
The gas crisis has halted new investment in Chittagong and discouraged foreign investors who sought to locate their sick units from south-east Asia to Bangladesh's southeastern coastal region.
The port city first experienced a major gas shortfall in 2007 after production in the country's lone offshore field, Sangu, declined to about 53mmcfd from its original capacity of 120 mmcfd.
In November that year, the Petrobangla stopped supplying gas to new industrial units, saying they see no prospect of any dramatic improvement of the country's gas production situation.
Power generation in Chittagong region has also been hard hit due to gas supply shortage.
Talukder said the additional gas would be supplied to two state-owned power plants and a private plant at Chittagong Export Processing Zone.
Malancha Holdings Ltd. (MHL)-an enterprise of United Group-installed a 40mw gas-fired power plant at CEPZ in 2008, but it could not start electricity generation owing to the gas crisis.
"In addition to the three power plants, we can also ensure supply to some new factories," he said.
Chittagong chamber vice president M.A Salam said the new supply is 'very insignificant' to meet the demand of energy-starved local entrepreneurs.
"In our estimates, Chittagong is facing a daily shortfall of 60 mmcf gas a day, which is around 20 per cent of our total demand. The new gas from Petrobangla won't help us that much because bulk of the supply would be consumed by power plants," Salam said.
He said some 200 factories worth several hundred million dollars have failed to start operation due to the gas crisis. "The authorities should give an extra effort to ensure supply to these affected companies," he said.
Petrobangla said it has already cut gas supply to gas-fired Raozan and Sikolbaha power plants in Chittagong to help out some of the manufacturers.
The two power stations require nearly 105mmcfd of gas to produce electricity but they are receiving only 39mmcfd of gas.