How long Ctg will suffer from gas crisis?
banglanews24.com :
Port city and also famed as gateway to Bangladesh Chittagong could make much greater contribution to national economy had it not been suffering from chronic fuel crisis, gas and energy crisis since 2006.
Conservative estimates evidence that the coincident peak demand of gas of the present connected consumers is over 500 MMCFD. But the present supply is about 220-230 MMCFD. The crisis has grown deeper since depletion of Sangu offshore gas field in 2010.
The existing Bakhrabad-Chittagong gas transmission pipeline for capacity constraint cannot supply more than 270-280 MCFD of which about 60-70 MCFD is used in greater Comilla and greater Noakhali regions.
Consequently, gas supply necessitates to be alternated between power and fertilizer. Major fertilizer factories KAFCO and CUFL remained shut down during peak irrigation season and high summer. Even after that all end users including industries suffer from poor gas supply (low pressure). Many industrial entrepreneurs investing huge borrowed capitals in setting up gas-based industries cannot bring their industries into commercial operation.
How Petrobangla failed?
Several expensive but less utility gas transmission infrastructures have been constructed for overcoming bottlenecks of gas supply to Titas Gas Franchise area (Bibiyana-Dhanua, Bakhrabad-Shiddhirganj). But for reasons better known to policy makers a very feasible Bakhrabad-Chittagong gas transmission loop line could not be built though experts are suggesting for this for a long.
In 2009, government took up a top priority project for importing 500 MMCFD LNG for gas starved Chittagong region. If pursued professionally by competent management LNG supply to Chittagong could be materialized by 2012. But till end of 2015 that initiative has not taken off yet. Neither the agreement for setting up FSRU nor for LNG supply could be concluded. It may take at least three more years to have LNG flowing to Chittagong even if it starts right now.
IOC operating Sangu Offshore Santos requested to let them develop Kutubdia discovered gas field alongside exploring Magnama and Hatiya in 2012. But EMRD of MPEMR acted like pennywise pound foolish. Santos had to abandon its plan to explore in shallow offshore. If given go-ahead some gas could flow through Sangu-Salimpur pipeline as Kutubdia is only few Kilometers away from Sangu offshore platform.
For lack of proper attention from Petrobangla Conoco Philips relinquished their blocks in Bay of Bengal after holding these for several years. They did some surveys and let out media propaganda of major discovery and created a clout for increasing gas price.
A good initiative was taken for BAPEX-IOC JV exploring some identified gas structures in Chittagong area. Personality class of policymakers let that initiative die premature death.
Feni gas field could supply some gas to partially ease the gas crisis. But EMRD /Petrobangla failed to resolve dispute with NIKO resources.
Government takes lot of pride and deserves it in resolving long-standing maritime boundary disputes with India and Myanmar in the Bay of Bengal. But the exploration initiatives in deep water prospects and remaining blocks of Bay of Bengal is still in the womb of uncertainty. Petrobangla evaluated proposal and recommendation for engaging surveyors for multi-client survey in the Bay of Bengal was not approved and was advised to go for retendering.
What can be done now?
In a recent roundtable workshop, State Minister for Energy Nasrul Hamid assured the nation that Chittagong Gas supply crisis may be over in 2 years. The state minister is optimistic. He talks sense but his brigade does not deliver. Experts believe that the following activities require to be done on priority basis to make that happen.
· Implement Bakhrabad-Chittagong 30-inched OD Bi Directional gas transmission loop Line project on EPC Project may take two years
· Expedite 500 MMCFD equivalent LNG imports on concluding agreements for FSRU and LNG supply
· Conclude BAPEX-IOC JV for exploration of identified gas structures in Chittagong region
· Resolving disputes with NIKO and bring back Feni gas field into operation
· Encourage domestic, commercial and small industrial consumers use LPG as alternate fuel. Even automobiles can be using LPG Government must have learnt lessons from its failures in gas sector from 2009 and must not repeat the same for the greater national interest.
Chittagong must not keep starving for gas. The prospects of massive industrial boom in Chittagong region will blow with the air unless credible infrastructures and supply security of gas and energy is not ensured soon.
