Gas rationing has begun throughout the country this week. As part of it, a good number of fertiliser factories will have to be closed to make way for diverting gas to some gas-fired power plants. The gas to be saved, to the tune of 250 million cubic feet per day (mmcfd), will be used to produce more electricity to ensure unhindered irrigation during the current Boro season.
Media reports have highlighted that there is a no alternative to rationing gas because of severe supply-side constraint. Due to dearth of gas supply, scores of new industries are unable to start production and existing ones are having problems in maintaining production schedule. There are indications that more power pumps and industries might become idle during the peak irrigation time and the summer due to severe load-shedding. To make things worse, the water crisis in the city will also turn acute as a result of frequent load-shedding.
The country's severe gas supply problem is set to prolong for at least next two years, blighting the prospects for further industrialization. The existing pipeline networks and compression stations are unable to support additional growth in gas output. Although Petrobangla is increasing gas production by conducting fresh drillings in the existing gas structures, it is unable to reap the maximum benefit out of it due to lack of adequate infrastructure. The country does not have sufficient gas pipelines and compression stations to carry natural gas from gas-rich northern region to the end-users. Low gas pressure in pipelines has emerged as the major obstacle to supplying gas. Unless the bottlenecks in gas pipelines and compression stations are overcome shortly, the country's industrial growth would face a serious setback.
Last week, Prime Minister Sheikh Hasina said her government was working to resolve the severe electricity supply problem as early as possible. Since take-over by the Awami League-led government, 1150 megawatt (mw) of electricity has been added to the national grid. Several rental and quick rental power plants will be operational by July this year to supply an additional 500mw of electricity and another 500mw by the end of this year.
But in reality, the amount of electricity that has been or will be added this year is far short of the country's requirement. Besides, according to reports, the government is unlikely to attain its annual power generation target, as 10 foreign-aided power projects are unlikely to be implemented due to several complications. The Economic Relations Division (ERD) has identified at least 14 particular problems in the implementation of the said projects. The problems relate to funding constraints, employment of consultants, and dilly-dallying in procurement.
Currently, the country faces estimated supply shortfalls of 300mmcft of gas and 1,500mw of electricity. As a result, industrial production including that of apparel, ceramics, fabrics, steel and particles is being adversely impacted. A good many number of mills and factories are running at less than 40 per cent of their capacity, despite using diesel generators. Many factories near Dhaka-Manikganj and Dhaka-Mymensingh roads and Narayanganj and Narsingdi belts are running at less than half of their capacity; small industries are on the verge of closure, as they cannot afford diesel generators.
Nearly 20 per cent of the readymade garments (RMG) units that do not have their own generators are on the verge of collapse. Machines are losing longevity due to frequent power cuts. Most recently, the government has directed the Power Division to provide gas connections to new RMG units that have been waiting for long. However, the authorities concerned did not say what will happen to the existing industrial units that are failing to get unhindered power supply.
In Chittagong, an acute gas supply problem has already left scores of big factories without power and halted some of the country's most ambitious industrial projects The Ashuganj-Bakhrabad gas pipeline does not have the capacity to carry gas beyond 185 mmcfd from the gas-rich north-eastern region to the south-eastern Chittagong. But gas demand in the port city is over 300 mmcfd now and it is rising continuously.
Indeed, the gas supply constraint is having an adverse impact on the country's economy. The situation has reached a critical stage. Over the past decade, there have been no major efforts to explore and exploit the gas resource of Bangladesh, in spite of the fact that its economy is otherwise largely gas-dependent. Low tariff of gas facilities facilitated the growth of many medium and large gas and energy-consuming industries in and around Dhaka and Chittagong cities. The demand for gas has over-stripped its supply. The country's gas sector management has failed to address the gas supply-related problems. Perspective planning on the part of Petrobangla and its affiliated agencies was missing. As a result, there was no coordinated effort for gas sector development activities and operation of new facilities.
However, the authorities concerned expect to complete the building of all the necessary gas pipelines and setting up of compression stations by next year. Construction work of several gas pipelines and compression stations is progressing fast. Apart from developing gas transmission and distribution networks, Petrobangla is also reportedly working to increase gas production substantially.
Taking up short- and medium-term measures is imperative for boosting gas production and expediting actions for its exploration. An extensive drive is also needed to snap unauthorised gas connections. Furthermore, early setting up of pipeline compressors is expected to ease the problem to some extent.
http://www.thefinancialexpress-bd.com/more.php?news_id=130978&date=2011-03-31
Media reports have highlighted that there is a no alternative to rationing gas because of severe supply-side constraint. Due to dearth of gas supply, scores of new industries are unable to start production and existing ones are having problems in maintaining production schedule. There are indications that more power pumps and industries might become idle during the peak irrigation time and the summer due to severe load-shedding. To make things worse, the water crisis in the city will also turn acute as a result of frequent load-shedding.
The country's severe gas supply problem is set to prolong for at least next two years, blighting the prospects for further industrialization. The existing pipeline networks and compression stations are unable to support additional growth in gas output. Although Petrobangla is increasing gas production by conducting fresh drillings in the existing gas structures, it is unable to reap the maximum benefit out of it due to lack of adequate infrastructure. The country does not have sufficient gas pipelines and compression stations to carry natural gas from gas-rich northern region to the end-users. Low gas pressure in pipelines has emerged as the major obstacle to supplying gas. Unless the bottlenecks in gas pipelines and compression stations are overcome shortly, the country's industrial growth would face a serious setback.
Last week, Prime Minister Sheikh Hasina said her government was working to resolve the severe electricity supply problem as early as possible. Since take-over by the Awami League-led government, 1150 megawatt (mw) of electricity has been added to the national grid. Several rental and quick rental power plants will be operational by July this year to supply an additional 500mw of electricity and another 500mw by the end of this year.
But in reality, the amount of electricity that has been or will be added this year is far short of the country's requirement. Besides, according to reports, the government is unlikely to attain its annual power generation target, as 10 foreign-aided power projects are unlikely to be implemented due to several complications. The Economic Relations Division (ERD) has identified at least 14 particular problems in the implementation of the said projects. The problems relate to funding constraints, employment of consultants, and dilly-dallying in procurement.
Currently, the country faces estimated supply shortfalls of 300mmcft of gas and 1,500mw of electricity. As a result, industrial production including that of apparel, ceramics, fabrics, steel and particles is being adversely impacted. A good many number of mills and factories are running at less than 40 per cent of their capacity, despite using diesel generators. Many factories near Dhaka-Manikganj and Dhaka-Mymensingh roads and Narayanganj and Narsingdi belts are running at less than half of their capacity; small industries are on the verge of closure, as they cannot afford diesel generators.
Nearly 20 per cent of the readymade garments (RMG) units that do not have their own generators are on the verge of collapse. Machines are losing longevity due to frequent power cuts. Most recently, the government has directed the Power Division to provide gas connections to new RMG units that have been waiting for long. However, the authorities concerned did not say what will happen to the existing industrial units that are failing to get unhindered power supply.
In Chittagong, an acute gas supply problem has already left scores of big factories without power and halted some of the country's most ambitious industrial projects The Ashuganj-Bakhrabad gas pipeline does not have the capacity to carry gas beyond 185 mmcfd from the gas-rich north-eastern region to the south-eastern Chittagong. But gas demand in the port city is over 300 mmcfd now and it is rising continuously.
Indeed, the gas supply constraint is having an adverse impact on the country's economy. The situation has reached a critical stage. Over the past decade, there have been no major efforts to explore and exploit the gas resource of Bangladesh, in spite of the fact that its economy is otherwise largely gas-dependent. Low tariff of gas facilities facilitated the growth of many medium and large gas and energy-consuming industries in and around Dhaka and Chittagong cities. The demand for gas has over-stripped its supply. The country's gas sector management has failed to address the gas supply-related problems. Perspective planning on the part of Petrobangla and its affiliated agencies was missing. As a result, there was no coordinated effort for gas sector development activities and operation of new facilities.
However, the authorities concerned expect to complete the building of all the necessary gas pipelines and setting up of compression stations by next year. Construction work of several gas pipelines and compression stations is progressing fast. Apart from developing gas transmission and distribution networks, Petrobangla is also reportedly working to increase gas production substantially.
Taking up short- and medium-term measures is imperative for boosting gas production and expediting actions for its exploration. An extensive drive is also needed to snap unauthorised gas connections. Furthermore, early setting up of pipeline compressors is expected to ease the problem to some extent.
http://www.thefinancialexpress-bd.com/more.php?news_id=130978&date=2011-03-31
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