Kazi Zahidul Hasan :
Industrial units have started getting gas connection after several years of pause taking advantage of supply of Liquefied Natural Gas (LNG) to the national grid.
“The government has already reintroduced new gas connections to industrial units in view of improved gas supply to the national grid,” Nasrul Hamid Bipu, State Minister for Power and Energy, told The New Nation on Friday.
He said, “Initially, we are providing gas connection to the industrial units at economic zones and key industrial belts in the country.”
Nasrul Hamid Bipu also said that gas connections would be opened fully for all the industrial units following additional supply of imported LNG to national grid.
“Industry owners will get new gas connections under a guideline,” he added.
Energy ministry officials said the country’s gas supply to increase by 500 million cubic feet per day (mmcfd) from April through import of LNG. But industries would have to pay an increase price for gas due to high import cost of LNG, they said.
The state-owned gas distribution, transmission and
marketing companies have already submitted their proposals to Bangladesh Energy Regulatory Commission (BERC) to raise the gas tariff for all types of consumers.
Energy ministry officials said, now the cost of per cubic meter gas for industries is Tk 7.76. But once the costly LNG is blended with the local gas, the tariff will go up to Tk 15-16 per cubic meter.
Regarding the tariff hike of gas, Nasrul Hamid Bipu said, “Gas price will be increased for commercial and industrial uses. The hike is inevitable on account of gas price hike in the international market and import of additional LNG.”
Industry owners see the latest development as a boon for local manufacturing sector, which was cramped by unreliable energy supply.
“The industrial sector will be immensely benefitted from the government’s new move as many of the factories could not begin production in the absence of gas connections,” M Shafiul Islam (Mohiuddin), President of the Federation of Bangladesh Chambers of Commerce and Industries told The New Nation.
He urged the government to fix a reasonable tariff of gas so that the industry truly gets the benefit from the initiative.
“An unusual hike in price of gas per unit will simply increase the cost of production,” he added.
In August last year, Bangladesh officially entered the LNG era with the supply of the liquefied natural gas to port city Chattogram. The Supply of imported (LNG) to the national grid has started in full swing since February this year.
Currently, the country’s gas fields altogether supplied about 2700 mmcfd gases to the national grid. Another 500 mmcfd of LNG is also added to it taking the total supply to 3200 mmcfd.
Officials said, the country’s actual demand for gas is even high and it is hovering between 3700 mmcfd and 3800 mmcfd.
“There is a demand for total 1900 mmcfd gas in the areas under Titas’s jurisdiction. But it is getting a daily supply of 1700 mmcfd gas from the national grid against the demand,” Mohammad Mostafa Kamal, Managing Director of Titas Gas Transmission and Distribution Company Limited told The New Nation.
Titas Gas is the largest state-owned natural gas distributor in Bangladesh, with an 80 per cent market share.
“More 500 mmcfd gas will be added to the national grid in the first week of April. The additional supply will help ease the gas crisis in Dhaka. Titas will get an extra 200 mmcfd gas from the national grid from April following enhanced supply of LNG,” said Mohammad Mostafa Kamal.
Industrial units have started getting gas connection after several years of pause taking advantage of supply of Liquefied Natural Gas (LNG) to the national grid.
“The government has already reintroduced new gas connections to industrial units in view of improved gas supply to the national grid,” Nasrul Hamid Bipu, State Minister for Power and Energy, told The New Nation on Friday.
He said, “Initially, we are providing gas connection to the industrial units at economic zones and key industrial belts in the country.”
Nasrul Hamid Bipu also said that gas connections would be opened fully for all the industrial units following additional supply of imported LNG to national grid.
“Industry owners will get new gas connections under a guideline,” he added.
Energy ministry officials said the country’s gas supply to increase by 500 million cubic feet per day (mmcfd) from April through import of LNG. But industries would have to pay an increase price for gas due to high import cost of LNG, they said.
The state-owned gas distribution, transmission and
marketing companies have already submitted their proposals to Bangladesh Energy Regulatory Commission (BERC) to raise the gas tariff for all types of consumers.
Energy ministry officials said, now the cost of per cubic meter gas for industries is Tk 7.76. But once the costly LNG is blended with the local gas, the tariff will go up to Tk 15-16 per cubic meter.
Regarding the tariff hike of gas, Nasrul Hamid Bipu said, “Gas price will be increased for commercial and industrial uses. The hike is inevitable on account of gas price hike in the international market and import of additional LNG.”
Industry owners see the latest development as a boon for local manufacturing sector, which was cramped by unreliable energy supply.
“The industrial sector will be immensely benefitted from the government’s new move as many of the factories could not begin production in the absence of gas connections,” M Shafiul Islam (Mohiuddin), President of the Federation of Bangladesh Chambers of Commerce and Industries told The New Nation.
He urged the government to fix a reasonable tariff of gas so that the industry truly gets the benefit from the initiative.
“An unusual hike in price of gas per unit will simply increase the cost of production,” he added.
In August last year, Bangladesh officially entered the LNG era with the supply of the liquefied natural gas to port city Chattogram. The Supply of imported (LNG) to the national grid has started in full swing since February this year.
Currently, the country’s gas fields altogether supplied about 2700 mmcfd gases to the national grid. Another 500 mmcfd of LNG is also added to it taking the total supply to 3200 mmcfd.
Officials said, the country’s actual demand for gas is even high and it is hovering between 3700 mmcfd and 3800 mmcfd.
“There is a demand for total 1900 mmcfd gas in the areas under Titas’s jurisdiction. But it is getting a daily supply of 1700 mmcfd gas from the national grid against the demand,” Mohammad Mostafa Kamal, Managing Director of Titas Gas Transmission and Distribution Company Limited told The New Nation.
Titas Gas is the largest state-owned natural gas distributor in Bangladesh, with an 80 per cent market share.
“More 500 mmcfd gas will be added to the national grid in the first week of April. The additional supply will help ease the gas crisis in Dhaka. Titas will get an extra 200 mmcfd gas from the national grid from April following enhanced supply of LNG,” said Mohammad Mostafa Kamal.
