Energy & Power

Report

No Light at End of Tunnel
EP Report

No light is seen at the end of the tunnel immediately for the solution to the current severe energy crisis, which has already taken a heavy toll on the country’s economy, according to sources.

Bangladesh Bureau of Statistics (BBS) officials predicted that the planned seven per cent GDP growth rate would miss the target because of energy crisis and also political turmoil.

They said that the production loss due to political conflicts could be addressed by running the factory overtime, but there is no magic wand to make good the production loss due to energy crisis.

Current energy demand has been estimated at 1700 million cubic feet per day (mmcfd) against which different gas distribution companies could supply only 1500 mmcfd, leaving a shortfall of around 200 mmcfd,

The delay in starting production in Bibiyana Gas field has been the major cause for the current energy crisis. The gas supply from Bibiyana field was to start from December 12, 2006, which has been deferred till February 28, 2007. Initially 150-mmcfd gas could be made available from this field and by this time it could be reached to 200 mmcfd, sources said.

The political turmoil has been the root cause for the delay to start production in Bibiyana. The US oil company Chevron is responsible for the development of Bibiyana gas field. Their technicians had to leave the country deserting Bibiyana because of political turmoil. They could not also clear their equipment from Chittagong Port because of the halt in port activities from October 2006.

The fall of production in the existing gas fields has also contributed to the current energy crisis. The Sangu gas field was to supply 110 mmcfd, but it came down to 80-86 mmcfd.

A total of 75 mmcfd gas was available from the Bangura gas field, which is also reduced to 68 mmcfd and gas supply from Feni gas field was also reduced to 12 mmcfd in place of 20 mmcfd, source said.

Almost all the important economic sectors have been hit hard due to energy crisis. The power sector lost 300 MW generations because of gas crisis and the fertilizer sector is also likely to be hit hard.

The Chittagong Urea Fertilizer Factory (CUFL) was set to start production after completion of its overhauling. But this plant have been shutdown because of gas crises. Energy officials said that it would not be possible to supply full quantity of gas to the CUFL before mid-March, 2007. A total of 48 million mmcfd gas would be required for the CUFL.

The gas officials are now thinking to curtail gas supply to the Kafco to supply minimum quantity of gas to the CUFL, which requires 60-mmcfd gas.

The Tongi power generation plant is ready to start generation, but Energy Secretary made it clear that without improving gas production it would not be possible to supply gas to the Tongi power plant.

Almost all the factories situated at Tongi, Gazipur, Fatullah and Shyampur have to remain out of production hour to hour because of gas crisis.

The energy secretary said that the energy supply situation would remain static till the middle of March next.

Arrear Tangle

Most of the independent power producers (IPPs) including the foreign-owned companies are among the top bill defaulters' of gas supplied by the Titas Gas Transmission and Distribution Company Limited (TGTDCL), official sources said.

"Although we have given reminder to the defaulters several times to pay their outstanding arrear bills, they did not do so", said a senior Titas Gas official told the FE.

Sources in Titas Gas, the largest gas distribution company in the country, said that local and foreign private power producers owed about Tk 1.75 billion until December last year.

Meanwhile, the private power producers hold a different view of the situation.

When asked about the huge outstanding, Managing Director of the RPCL Nazmul Hossain Chowdhury said that his company could not pay bills regularly to TGTDCL due to non-payment of their power tariff owed by the Power Development Board (PDB).

"We also get arrear bills of more than four months from the PDB. Every month we sell power to the tune of Tk 220 million to the PDB," he said.

Titas Gas official said although most of the local power generation companies paid their arrear bills on a regular basis for procuring gas from the TGTDCL, the large foreign power companies had not been paying the bills regularly over the last few months that resulted in the pile-up of a large amount of arrear bills.

He said: "Since power is an essential input for the country's economy, we cannot stop gas supply to the power producing companies despite their huge outstanding bills".

"The state-owned Power Development Board (PDB), which purchase gas for operating its different power plants, could not pay gas bills regularly as it is a losing concern. There is no reason why the profitable foreign power producers should not pay their bills regularly," he asked.