Special Article

Gas Crisis in Bakhrabad Franchise Area
Muinul Ahsan

Bakhrabad franchise area consisting of Chittagong , Noakhali, Feni, Chandpur and Comilla requires about 350 mmcfd of gas per day at present. Chittagong area itself requires about 330 mmcfd of gas per day. But unfortunately only about 275 mmcfd of gas is available from national grid and Sangu Gas Field belonging to Cairn Energy. Sangu Field is producing around 60 mmcfd of gas and directly feeds the main pipeline around Chittagong . From National Grid through Ashuganj-Bakhrabad and Bakhrabad-Chittagong pipeline about 170 to 180 mmcfd of gas is supplied to Chittagong city gate station. As a result, Chittagong area is facing shortfall in supply of gas.

Gas supply scenario in BFA is as follows.

Bakhrabad Gas System Ltd (BGSL) is unable to meet the demand and has to adopt gas rationing policy. Either one of the power plants at Rouzan or one of the fertilizer plants is subject to stoppage of gas supply. They have already notified the investors to take prior permission from BGSL before establishment of any new gas based industries in Chittagong area. Even the top priority sectors like CNG pump stations and captive power generation units have been discouraged. These investors have been subjected to great financial crisis as they have already invested huge amount of money and they are unable to meet the debt service liability with the banks. A great hue and cry exists among the gas consumers in Chittagong area. No immediate solution to the problem is there until M/S Cairn Energy discovers new gas fields in the Bay. Exploratory drillings are being conducted by M/S Cairn at Moghnama structure at present and it is hoped that gas is struck there. If the country is lucky and the gas is discovered in economic quantity, it may take two to three years to market this gas as production wells and establishment of new pipeline and process plants are required. Till that time Chittagong area will be starved of gas and economic development will suffer.

This situation was not unwarranted. Gas from Sangu Field was depleting fast. The capacity of Bakhrabad-Chittagong transmission pipeline is limited to about 180 mmcfd. The planners have failed to realise the situation and no action has been taken to augment the supply to Chittagong area. The project for establishment of compressors at Ashuganj and different places by GTCL is progressing at a snail's pace and still in very early stage. The fruit of the project may not be available before 2011. Therefore, supply of additional gas from national pipeline will not be possible. It could not be understood why GTCL did not anticipate establishment of a compressor at Feni, though the designer of the Bakhrabad Chittagong pipeline kept provision for establishment of compressor station at Feni while designing the pipeline in the year 1979/1980. It was recommended that the compressor station be established at Feni once demand of Chittagong area increases to 350 mmcfd. It is high time that the compressor station is established on top priority basis. Alternatively, a parallel pipeline should be constructed from Bakhrabad to Chittagong . The World Bank has also identified in their recent study the requirement of this parallel pipeline. It has become essential that this parallel pipeline is constructed on top priority basis. Steps should be taken soon and formalities simplified so that construction work is possible in the 2009 dry season.

It is to be understood that for sustainable development of the country, industries in Chittagong need to be supplied with gas. They also need to be supplied with power by PDB from their plants in Chittagong which also require gas.

Government must also think for alternate supply of gas from other sources, especially for energy security. Myanmar gas as discovered recently may be imported and a gas pipeline constructed to be connected with our transmission network in Chittagong . This will also assist in saving our gas fields from sharp depletion as our present reserve is limited to around 8 trillion and can meet the demand only up to 2016. Time should not be lost unnecessarily and pragmatic proactive thinking is the cry of the hour today to make sure that our power plants, fertilizer factories and industries are run smoothly and no gas crisis exists.

The national pipeline also needs renovation. The Rashidpur-Ashuganj section of the national pipeline is running in full capacity at present. Two existing pipelines viz Rashidpur-Ashuganj pipeline and North-South pipeline are transporting 900 mmcfd of gas. Additional gas as required for BFA can not be transported by these two pipelines though gas is available from Bibiayana Field belonging to Chevron. A third pipeline of 30" diameter from Rashidpur to Ashuganj need to be built along with parallel pipeline from Bakhrabad to Chittagong . The outcome of compressor project is uncertain as pressure drop at Muchai, Rashidpur and Ashuganj is not substantial requiring compressor. The evaluation of gas may remain a problem even with introduction of compressors in the transmission network. This pipeline would also supplement additional gas supply to Titas and Western zone.