Dhaka and Chittagong are two major cities of Bangladesh which consumes about 85 -90% of the national energy supply. Not only these cities have most of the population but for several reasons most of the industrial growth have taken place in and around these cities. But for unplanned growth of the cities, inadequate and ill planned development of energy supply infrastructures it has become almost impossible to confront and overcome power and gas supply crisis of Dhaka and Chittagong soon. In present circumstances it will matter little how much gas power is supplied to Dhaka and adjoining areas the distribution system can not reach these to end users. Situation in Chittagong is different. Chittagong gas network is well planned and power distribution system is also better. If required power and gas can be supplied Chittagong can absorb all and reach to consumers. Gas system condensation related problems in Dhaka and Chittagong in winter is a purely system operation failure to clean transmission system at regular interval. Regular on stream pigging can easily confront this nuisance.
Since present government took over on January 6 ,2009 the power and gas supply situation in the mentioned cities have actually further deteriorated despite significant efforts in laod management and for enhancing efficiency. Apart from generation shortage of power and production shortage of Natural gas the management inefficiency of both power and energy sector is equally responsible for the ongoing crisis. Too many talk shops and desk officials getting responsibility of sector management have made mess of the situation.
Natural gas still accounts for about 85% of power generation. In two years present government miserably failed to identify properly the reasons of the gas crunch and create reliable alternative fuel supply .Transmission and distribution of gas supply in Dhaka and Chittagong is also on the verge of collapse. These have resulted in restricting gas supply to booming CNG industry , Holiday staggering of energy consuming industries , alternating gas supply between power and fertilizer . Still these are not making noticeable improvement. Gas supply to new industries remains suspended. Many industrial entrepreauners making huge investment are in total frustration not being able to commence business.Many existing industries are in danger of closure.
All these have happened to unimaginative growth of gas market in Dhaka and Chittagong area.Petrobangla and its companies failed not only in exploring and developing new gas resources and creating required transmission infrastructures, they also misjudged system growth. Wonder what Petrobangla [Production and Marketing] Division did? Some incompetent senior officials occupying senior positions in Petrobangla misguided nonprofessional Petrobangla Chairmen over the years . Petrobangla must have regulated gas market growth in and around Dhaka and Chittagong when it sensed the demand sup[ply imbalance and hence deficit was growing alarmingly.
Gas Crisis in TGTDCL Franchise Area:
TGTDCL and Petrobangla must share the blame more than any others for the present crisis. So called smart Titas planners must have foreseen the growth in greater Dhaka area in early 1980s when they implemented Titas- Norshidi-Joydevepoor gas transmission pipeline. We remember when BGSL develop 24 “OD Pipeline around same time and when PIU implemented 24” OD North –South Pipeline Titas Planners were very critical. They thought these to be unnecessary investments. Titas planers even created hue and cry when BGSL built Bakhrabad –Demra transmission pipeline in 1984 to meet part of greater Dhaka demand. Just imagine if Titas –Norshigdi –Joydevpooor Transmission pipeline was built as 24 “ OD in 1984 present gas transmission crisis would not have arisen . Two Titas Gas desk officials getting responsibility of GTCL since 2003 has back pedaled the company .GTCL’s failure in implementing required gas transmission infrastructure over the last 7 years is one of the major reasons for present crisis.
Titas distribution system has several bottlenecks also. Under Dhaka Clean fuel project several large diameter feeder lines were planned. There must not have been low pressure issues due to undersized distribution segments if these were built and professionally maintained.Titas system has several unauthorized ghost pipelines and connections. The real Unaccounted for gas inTitas system may be equal to gas demand of JGTDSL and PGCL put together. Huge amount of gas is also wasted for inefficient use of gas. Very poor gas price and opportunity to pilfer gas has encouraged mushroom growth of energy inefficient industries around Dhaka city,
Titas Gas is the pioneer gas company in Bangladesh. But after 1975 many bright professionals of Titas left the company for better jobs abroad or in other companies inside Bangladesh. Hostile trade unionism took control. Thefts and pilferage of gas , corruptions in recruitment , purchase , construction of gas infrastructure created mess . Gas mafia syndicate made merry . Some besk professionals who never spent time in Gas system infrastructure development rose to the level of policy makers. Corruption and mismanagement of Titas officials also led to present crisis. Titas officials in recent times also joined hands with corrupt energy sector mafias. 9 Senior Titas Officials were suspended for alleged corruption during last tenure of present government. Many of them were again under corruption Radar for the massive scam in Bangabandhu Bridge Approach Road Gas transmission pipeline where from tendering to substandard construction there were several irregularities.
A committee headed by Mr A Karim, Secretary to PM Hasina surfaced all the irregularities. Parliamentary committee on Energy was also aware of the irregularities. But powerful energy Sector mafia under coverage of Khondkar Shahidul Islam managed everything. All the mischief mongers of TGTDCL got off the hook. Some of them having strong HAWA Bhaban links got prized posting in Petrobangla. Hence Gas sector deterioration continued.
BGSL crisis is different. The concept of having BGSL HQ in Commilla was wrong. Chittagong accounted for 95% of BGSL revenue .After development of Chittagong market BGSL HQ should have been relocated to Chittagong or a new company [Now Operative] should have been created. BGSL after glorious first decade started falling apart since 1988 when parochialism and corruption creped in. Professionals working in Chittagong Gas distribution created Gas system pilferage mafias. Senior officials also got involved and gas theft became free for all in BGSL system.
The development of Shangu created gas supply alternative for Chittagong in late 1990s. But overdrawing of Gas from depleting gas resource of Bakhrabad and Shangu gas fields created new crisis. Petrobangla and BGSL must have built a loopline from Bakhrabad – Chittagong when it became clear in 2002 that Shangu was depleting. Chittagong system suffers from gas supply crisis. Feni gas field could come into some relief. But ongoing dispute over suspension of payment of gas from Feni for gas blow out by operator at Tengratilla deprives Chittagong System. Protracted delays in Semutang gas field development did not help the cause. Petrobangla failed to encourage IOC to develop Magnama and Hatiya and wasted valuable time in unnecessary neat picking. Present Government has created KGSL which is a right move .But keeping the same persons of doubtful integrity in company management is not the coirrect strategy. Government also has taken seriously misguided strategy for LNG Import without carrying out feasibility study.LNG for Bangladesh will not be feasible in foreseeable future.LNG infrastructures may not be complete in less than 4 years at least. Chittagong system has a demand of 350MMCFD and supply is about 250MMCFD now. Thre situation will continue till additional supply can be made.
Remedies: TGTDCL System [Including Greater Dhaka]
Present Gas Demand of TGTDCL system is about 1800MCFD .This in other words mean TGTDCL alone needs almost all of the present national production. If there could be authentic technical audit it could evidence that about 200MCFD gas remains unaccounted for in Titas. There is no way Titas Management can control it huge marketing area from Kawran Bazar office. There are allegations that gas theft at Gazipoor, Narayanganj and Tongi areas. For better control and management TGTDCL franchise area must be trifurcated according to following
# Greater Mymensingh area: Brahmaputra Basin Gas System Ltd.
# Norshingdhi and Naryanganj Area : Shitalakkhya Gas System Ltd.
# Dhaka Metropolis, Gazipoor,Savar
Munshiganj, Munshiganj : TGTDCL.
Unless the above is done all actions to improve gas supply situation will fail.
# Construction of Bakhrabad – Shiddhirganj Pipeline, Compressor Stations at Ashuganj, Ashuganj-Bakhrabad Loop line will increase gas supply to TFA by about 300MMCFD by 2013.
# Pipeline supply of gas for domestic and commercial use must be gradually discouraged and wherever possible should be replaced with LPG.
# Price of Gas to CNG must be made about 75% of alternate fuel.No more CNG fuelling stations must get gas supply. Efficiency of gas use of existing CNG Fuelling staions must be checked.
The thoughts of a merchant pipeline from Bibiyana to Dhanua is illogical and waste of time
Remedy of Chittagong Gas Supply Situation:
- Abandonment of LNG import Initiative. This is not feasible option to address the crisis.
- Expediting Semutang gas Field Development.
- Resolving issues with NIKo out of court and allow them increase supply from Feni Gas Field.
- Upon development of Sundalpoor building spur line to BKB-CTG pipeline.
- Encouraging Santos to expedite works at Shangu South, Magnama and Hatiya
- Start construction of a loop line from Bakhrabad –Chittagong on top priority basis.
- Convert part of gas of Shabajpoor to CNG and transport this by river vessel to Chittagong
- Engage positively with Myanmar for gas import.
- Review Model PSC 2008 and go for another round of offshore bidding.
- Setting up of few more furnace oil based power plants in Chittagong.
- Expanding Kapati Hydro power capacity if possible. Set up mini Hydro plant at Mahamaya
General Recommendation:
- Northern Corridor of National Gas Grid [North –South Pipeline , Rashidpoor –Ashuganj Loop line ] , Brahmaputra Basin Pipeline and Ashuganj –Bakhrabad Pipeline must undergo On-stream Pigging without delay.
- Professionals having proven track records of Managing Gas system infrastrucre development and operation must spearhead major company operations.
- Gas sector must be relieved of exclusive dependency for poiwer generation.
- Natural Gas must be used for industries , fertilizer and CNG only.
Government has to take care of the entire country. Rajshai and Khulna Division will soon come under national Gas Grid. Some irresponsible persons are currently suggesting that Titas Gas Field must be absolutely dedicated for Dhaka .This they are telling despite of their knowledge that Bakhrabd Gad Field and Habiganj Gas Field served TFA for a long time and gas from National gas grid meets substantial gas requirement of TFA.
We hope Government will deal with present crisis professionally taking lessons from ill-conceived initiatives of recent past