Titas to resume limited-scale gas connection to industries

Titas to resume limited-scale gas connection to industries
Titas Gas Transmission and Distribution Company Ltd is set to resume, albeit in a limited scale, gas connections, a high official said.

In the first phase it plans to provide gas connections to some 50 selected industrial applicants. The Titas stopped giving new connections since March 2009.

A five-member high-powered committee has been formed recently to scrutinise the applications of the factories awaiting gas connections.

The committee comprises Adviser to the Prime Minister on Energy Tawfiq-e-Elahi Chowdhury, Energy and Mineral Resources Secretary Mohammad Mesbah Uddin, Power Secretary Abul Kalam Azad, Petrobangla Chairman Md Hussain Monsur and Titas Gas Managing Director Md Abdul Aziz Khan.

"We have taken decision to give gas connections to some selected industries, which were earlier issued demand notes and have gas lines and other facilities in place, on priority basis within six months," Md Abdul Aziz Khan told the FE.

"We are waiting for the go-ahead signal from the high-powered committee as some of its members are abroad now. After completing the signing phase, we will go for the implementation as early as possible," he added.

Meanwhile, Md Hussain Monsur said, "Considering the serious condition of the entrepreneurs, the government has taken decision to give new connections in a limited scale on priority basis".

He however said, "If we now give connections to all the applicants, none of them would be able to run the industries smoothly as it might lead to further shortage in gas supply."

A high official of Titas Gas said, "About 200 applications for industrial connections have been lying with us, but due to shortage in gas production, the government has stopped giving such connections since March, 2009".

Meanwhile, an entrepreneur of a knit textile industry said on condition of anonymity, "I have invested Tk 10 million to set up a factory. But unfortunately, I can't start work even after more than one year due to lack of gas connection. I have completed all the formalities including demand note for gas connection but I am yet to get it."

"The government has given me permission to set up the factory, but now it has stopped giving gas connection, is it not contradictory?" the entrepreneur questioned.

Bangladesh has a proven stock of around 12.0 trillion to 15.0 trillion cubic feet of gas, which is feared to be exhausted by 2015 if its use continues at its present pace. The country has shortage of 300 million to 500 million cubic feet of gas per day, according to Petrobangla data.

Titas Gas Transmission and Distribution Company Ltd provided around 1.56 million gas connections to people of Dhaka and its adjacent areas. Among these, 10,893 are for commercial use. The company started providing gas connections from April 28, 1968.

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Shafiul Islam (Mohiuddin) has hailed the government for its positive decision and urged the authorities to find out ways to give connections to other factories also.

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