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Saturday, January 15, 2005

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HEADLINE
 
viewpoint: corruption in energy sector
Pilfered condensate a source of adulterated fuel
Asif Parvez
1/15/2005
 

          The prices of diesel and kerosene have been raised in order to offset the continuous financial losses of Bangladesh Petroleum Corporation (BPC).
This corporation has become almost bankrupt due to regular pilfering of petroleum, oil and lubricants (POL) through its faulty distribution systems operated by corrupt officials.
Instead of combating corruption, prices of diesel and kerosene have been upwardly revised with the plea that these are smuggled out of the country. It is not smuggling out of kerosene that is the problem. On the contrary, it is pilfered condensate that is being adulterated with kerosene to convert it into upgraded fuel, a close substitute of diesel.
This adulterated fuel is largely used in engine boats, trailers, locally fabricated mini-trucks and rural mechanised transports. A part of it is also used for pumps, rice husking, etc.
Do the energy ministry and BPC have any realistic data and genuine estimates of fuel requirement by types, quality, mode of transport and other engines, etc?
Demand for diesel goes up in winter for agricultural and rural transport sectors in Bangladesh. A survey should be conducted to find out the total number of mechanised irrigation units and transportation systems including those built locally using engines of old government vehicles -- either sold in auctions or missing from the project offices.
With the rapid expansions of road infrastructures, demand for transportation of agricultural products, industrial raw materials and consumer goods has shot up manifold. Energy planners seem to be ignorant of the realistic scenario of the developments taking place in the country.
The state minister for energy should give up his habit of talking on a lot of less important issues to the media making lofty promises and unrealistic approaches to the problem at issue. Is he aware that the Indian energy analysts claim that kerosene is smuggled into Bangladesh from Indian states, as its price is also subsidised in India. Kerosene trading is highly rewarding, when it is adulterated with pilfered condensate from gas field of Bangladesh.
The Petrobangla has been a facilitator of condensate pilfering in the country. It is rooted not in extractions of natural gas liquids (NGL) from the semi-wet gas fields -- namely, Kailashtila and BeaniBazar of Sylhet Gas fields Ltd., and Jalalabad of UNOCAL. Why were not NGL extraction facilities and its fractionation plants developed at the time of field development?
The country's intelligence departments and Anti-Corruption Commission (ACC) may investigate the matter. The High Court may also intervene under a suo moto rule issued upon the Energy Division, the Petrobangla and others concerned, asking them how such colossal losses of resources like NGL -- the feedstock of much needed Liquefied Petroleum Gas (LPG) -- are taking place year after year.
It was decided by the government in 1992 that the NGL fractionation plant should be established in the private sector. In the absence of both NGL extraction facilities in the semi-wet gas fields and simultaneous establishment of NGL fractionation plants, LPG could not be extracted. Only a small scale pilot plant was set up at Kailashtila and it is successfully operating there and extracting about 18 tons of LPG per day against the plant capacity of 15 tons a day.
Three semi-wet gas fields are at present producing gas and Bibyana in the future will have the potential to produce about 600 tons of NGL per day, from which about 180 tons of LPG could be extracted and bottled per day.
The officials concerned at Petrobangla hold the view that if NGL is extracted it, being lighter and in gaseous form, cannot be pilfered before its fractionation. It would have cut the root of condensate pilfering permanently. Because, condensate is produced in bigger volume at least four to six times more in semi-wet gas fields than in the semi-dry gas fields. This is the reason why NGL extraction and fractionation thereof are being avoided for a long time.
It is a criminal act. Indigenous production and bottling of LPG would help meet the ever growing demand for clean domestic fuel in the country. Domestic uses of pipeline-gas are not cost effective and it causes system losses and rampant thefts in various kinds, such as unauthorised connections and use of double burners after obtaining sanctions for single burners and often getting unauthorised extension for commercial uses from domestic connections.
Furthermore, domestic gas is unmetered and its consumption is highly under-billed, particularly during the winter months. The price of single burner and double burner per domestic connection should be almost same, as the consumption of gas per connection is almost equal, irrespective of the numbers of burners. It is convenient to use double burners, but each kitchen uses almost same quantity of gas.
Even 5.0 per cent of the gas burners sold in the market are not single-burner stoves. The users of single burners should be asked to opt for LPG. Then, they will prefer to use it very rationally.

 

 
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