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Chittagong industries are set finally to get gas connections in the second half of this calendar year after remaining suspended for over nine years.
In the first phase, 101 industrial units and five captive power plants will get gas connection, concerned sources in the Karnaphuli Gas Distribution Co. (KGDC) said. The KGDC has decided to issue demand note for new gas connections as the company got approval from the office of the Energy Adviser to the Prime Minister.
The KGDC authority will provide connection of LNG (liquefied natural gas) in April and May this year said a senior official of the gas distribution company.
He said the connections will be provided on first-come first-serve basis & the unit price of the LNG will also be enhanced. The price of gas for industries is currently Tk 8.10 per cubic feet but in the case of new connections the price of LNG per cubic feet will be as high as Tk 14.90.
Construction of the 91 kilometre long gas supply line from Moheshkhali LNG terminal to Anwara is nearing completion but the 30 km gas pipeline from Anwara to Fouzdarhat in the city faces hurdle in the land acquisition which poses delay in the gas transmission process, said an official of KGDC.
The unusual hike in price of gas per unit for new connections has angered the businesses and industries. They said that the unusual price hike by Tk 6.80 per unit will simply increase the cost of business.
They said there is a 7-member advisory committee headed by Power, Energy & Mineral Resources Advisor to the Prime Minister Dr. Toufiq-e-Elahi Chowdhury. Petrobangla chairman is its member secretary. This committee decided to provide gas connection to Chittagong industries.
President of Chittagong Chamber of Commerce & Industry Mahbubul Alam said gas rate should be uniform for all industries across the country. It will not be wise if some industries in a region have to pay higher rate than other industries of other regions. Industries will not survive in the competitive market if the rate is enhanced unusually.
Sources in the KGDC said the industries will be provided LNG, not gas. And the import cost of LNG, transportation cost & other relevant costs will automatically raise the price of the fuel.
Managing Director of the KGDC Abdullah al Mamun said 101 industries and five captive power plants have been brought under the new LNG connection in the first phase. New industries will also be provided LNG connections depending upon the quantity of imported gas. The new connections will get gas supply from next May, he said.
Chittagong region is pulsating with a number of communication, infrastructure and other development projects. But it is deprived of gas, which is the key to industrialisation and economic empowerment, since 2006.
Businesses and manufacturers are extremely frustrated over the severe gas crises that pose as the biggest hindrance to the economic advancement of Chittagong region. Country's commercial hub, house to the prime maritime port and most of the major heavy industries, three EPZs (export processing zones) & two giant economic & industrial zones in the making.
Although most of the major industries are located in the Chittagong region, daily gas supply there fluctuates between 180 and 220.mmcfd (million cubic feet per day) against the peak demand of 400-plus mmcfd. Of that, the power sector is getting single digit quantity of mmcfd against demand of 150 mmcfd, fertilizer sector 87.6 mmcfd against the demand of 115. Others including the readymade garment sector, steel re-rolling, domestic, commercial and CNG filling station get gas in the range of 90 to 110 mmcfd against the demand of 126 mmcfd.
Situation was slightly better as long as production in Sangu-?? gas field was normal. But closure of the gas field has exacerbated the shortage of gas supply in Chittagong since September 2013 when the gas field was completely abandoned. Sources in Petrobangla have been stating that they have no plans to supply gas in Chittagong region as they do not have any extra gas.
Industrialists, businesses and trade body leaders had been urging the KGDC in Chittagong since 2006 that actions needed to be taken to augment gas supply in view of the depleting scenario of the Sangu Gas Field but none paid any heed to them.
Businesses have urged the government to import the fertiliser for agriculture and arrange temporary suspension of gas supply to the multinational fertiliser producer KAFCO (Karnaphuli Fertilizer Company) & CUFL (Chittagong Urea Fertilizer Ltd) just to keep the production flow in the industries uninterrupted until normalisation of gas supply in the country.