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The government plans to rationalise the supply of gas to cope with the ever-increasing demand for the same
in the country, especially in the industrial sector.
"The country's tremendous industrial growth in the last several years put pressure on the supply of gas to the
industrial 'growth zones' especially in Savar, Tongi and Gazipur areas," Adviser to the Energy and Mineral
Resources Division (EMRD) Mahmudur Rahman told newsmen Wednesday.
He also admitted receiving complaints from several entrepreneurs over low gas pressure in their factories in
the 'growth zones.'
In one such complaint the General Manger of Standard Ceramic alleged that the company was getting gas at
a pressure of 1.25-1.50 pound per square inch (PSI) instead of the usual 8.0 PSI over last week which, he
said, was hampering their production.
"The representatives from the Power Division, EMRD and the ministry of industries will meet tomorrow
(Thursday) to finalise the gas supply rationalisation strategy," Rahman said.
Rationalisation of gas supply will likely to be set for bulk consumers, particularly in the fertiliser factories
and power plants, he added.
Justifying the rationalisation initiative, Rahman said: "The country posted a 22.5 per cent growth in
industrial sector on an average in the past four years, whereas the growth of gas production was only 12 per
cent during the period."
"But the energy ministry has failed to keep pace with this robust growth as it predicted only six to eight per
cent annual gas demand growth," he said.
He said the country produced the highest ever 1512 million cubic feet gas per day (mmcfd) Tuesday against
a demand for the fuel estimated at over 1600 mmcfd.
The country's gas production capacity was only around 1050 mmcfd when the four-party government took
power four yeas ago, he said.
The production will continue to rise to feed the industrial sector, he added.
The advisor said the country is likely to experience a shortage of at least 100 mmcfd gas until early 2007.
Although the production of gas will rise in the future from different gas fields the shortage is unlikely to be
eased in the days ahead, upto 2007, due to the growing demand from the industrial sector.
Rahman said the country's gas supply is expected to stabilise sometime in 2007 when the second largest gas
field at Bibiana will start producing between 250 and 300 mmcfd of gas.
He, however, said some other fields might also start producing gas by that time.
Until 2007, the production will increase by a total of 800 mmcfd to match the demand for gas at that time.
Rahman, who is also the Executive Chairman of the Board of Investment (BoI), said that the existing
domestic gas demand proved the exponents of gas export wrong.
The BoI chief said the industrial sector growth, particularly the export-oriented garment industries, has
picked up since the beginning of post-MFA era.
He noted that all the garment manufactures were so booked with the orders from overseas buyers that they
would not be able to take any fresh order over the next four months.
"Besides, every week we are receiving, on average, 25 proposals from entrepreneurs for setting up new
knitwear industries in the country," he said referring to a future boom in the sector.
The advisor said the present gas supply situation would relatively improve after implementation of the two
gas-transmission line projects.
The Dhonua-Saver and Ashuganj-Monohardi gas transmission lines have already been approved by the
Executive Committee for National Economic Council (ECNEC) at a meeting Wednesday.
He admitted that his public statement about gas supply scenario might discourage the foreign investors.
But he said the investors will not feel discouraged if they are informed about the real situation. Because,
any new investment needs at least two years time to take place. So, by the time, the problem will be
overcome, he added.
Mahmudur Rahman said the Energy Ministry would take initiative for the third round of block bidding for
gas exploration with a view to meeting the future gas demand.
As part of the process, he said, the ministry will invite bids for a seismic survey by December this year.
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