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The government has planned to enhance natural gas supply to industries for next four months (May-August) by cutting supplies to the power plants and increasing imports of liquefied natural gas (LNG).
According to a roadmap drawn up at a meeting on Wednesday, the industries are expected to get an additional gas of 250 million cubic feet per day (mmcfd), Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan said after the meeting with business leaders at Bangladesh Secretariat.
The country's industrial sector has long been suffering from severe gas supply disruptions amid less-than-required domestic production and imports of the energy. As a result, businesses allege, they have been suffering from production losses and losing competitiveness in the international markets.
Elaborating his plan, the energy adviser said that around 150 mmcfd gas will be diverted from the power sector allocation while 100 mmcfd will be added by importing four extra LNG cargoes during the four-month period at a cost of around Tk 28 billion.
The government will have to spend an additional Tk 110 billion on supplying this additional gas to the industry, he added.
The state-run Petrobangla will also reduce natural gas allocations for gas-fired power plants to 1,050 million cubic feet per day (mmcfd) from existing 1,200 mmcfd.
Bangladesh Knitwear Manufacturers and Exporters' Association (BKMEA) President Md Hatem, Hamim Group Director AK Azad, Meghna Group Managing Director Mostafa Kamal, Pran Group Chairman Ahsan Khan Chowdhury, Bangladesh Chamber of Industries (BCI) President Anwar Ul Alam Chowdhury Parvez, Energy Secretary Saiful Islam, Petrobangla Chairman Md Rezanur Rahman and Chief Adviser's Press Secretary Shafiqul Alam were, among others, present at the meeting.
UNB adds: The energy adviser admitted that the measure would lead to a decline in power generation, but the government, as an alternative, would run more liquid fuel-based power plants to increase the power generation.
He further mentioned that the government will take measures to boost domestic gas production and to increase imports.
"We'll import four more LNG cargoes in addition to the existing annual plan," he told reporters after the meeting.
Currently, Petrobangla supplies a total of around 2700 mmcfd of gas through production from local fields and imported LNG.
Of this, around 1,700 mmcfd gas comes from local fields and the remaining 1,000 mmcfd from imported LNG.
The adviser said that the meeting also took a number of decisions, including the one that Titas Gas and industrial investors' leaders will set up a joint taskforce to oversee and check the illegal use of gas by industries.
Besides, the government and industry leaders will identify the industrial areas to increase the gas supply.
He said the government has been drilling 100 wells which are expected to add about 500 mmcfd gas in the next two years.
Azizjst@yahoo.com