Post approval scenario

303 out of 354 cos yet to get gas supply

Despite the approval by the high-level committee headed by the adviser to Prime Minister Sheikh Hasina on energy, Tawfiq-e-Elahi Chowdhury, the gas distribution companies have failed to give gas connections to 303 out of 354 companies over the past two and half  years. Sources in the sector said at least five ambassadors from different foreign missions have recently requested the government to supply gas to interested companies belonging to their respective countries.
A government official said 2,400 more applications for industrial gas connections are pending for the past few years. These applications were submitted at a meeting of the high-level committee, held on February 9, at the Prime Minister’s Office (PMO). The committee has not taken any decision as the gas crisis has worsened this winter.
Engineer Mir Mosiur Rahman, a source, told The Independent: “No instruction to provide any gas connection has been made by the committee on February 9.”
When asked, he told The Independent: “I am not a member of the high-level committee, but as the chief of the distribution committee, I was present at the meeting to give replies to all kinds of queries.”           
The committee reviewed the situation, saying that the flow of gas would not permit any new connection, even though there is massive demand from all quarters.
Sources said the embassy of the Netherlands has requested the ministry to provide a gas connection to International Classic Knitwear, located in Jaidevpur. The Japanese ambassador in Dhaka, in a letter, expressed his concern over the fact that his country has invested in PM Textiles, which is run by natural gas, but the gas pipeline connected to the textile mill can also be used by the distribution company. This fact could have a deleterious impact on Japan’s interests, he noted, as the gas pressure at the mill could drop.
The German embassy recently requested the Akij Paper Mill be given a gas connection as it is almost ready to run. The South Korean embassy, too, has requested such a connection for a fast-food chain. The Indian high commission has also sought a gas connection to an industrial unit of the ACI Group.
On July 12, 2015, the committee instructed gas distribution companies to give connections to more than 354 new industrial units. But till this month, only 51 industrial units have been connected, with the remaining 301 not getting any connection.
To make matters worse, a list of appeals from 1,564 other industrial units has been prepared for submission to the committee.
A report on gas connections submitted to the committee reveals that 33 unconnected industries have been suffering due to inadequate gas pipelines and 134 approved applications are currently in the process of being connected. The remainder—139 industries—has not yet communicated to the distribution companies for gas, which has surprised the committee.
“We did not receive any communication earlier from the industry-owners approved by the committee, but they are now communicating with us for their connections,” said the managing director of Titas Gas Distribution and Transmission Company, Mir Mashiur Rahman.
Mohammed Nasir, first vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Independent, “We are facing some challenges in the international market, but we are more concerned about the gas, because this is the main challenge facing industrial growth right now. We are setting up industrial units, particularly garments factories, while complying with the buyers’ conditions. Business houses are paying bank interest. But they are not able to do any business, and that is because there is no gas connection.”
In reply to a journalist’s query, the state minister for energy and power, Nasrul Hamid, has reiterated: “The gas supply would be normal at the end of 2018, when imported LNG would be injected into the national grid line.” The country is now producing only 2,700 MMCF gas per day whereas the demand is more than 3,200 MMCF. In 2018, the imported LNG will be up on the national grid. It would become much easier to provide gas connections then, the government official said.

Post approval scenario

303 out of 354 cos yet to get gas supply

Despite the approval by the high-level committee headed by the adviser to Prime Minister Sheikh Hasina on energy, Tawfiq-e-Elahi Chowdhury, the gas distribution companies have failed to give gas connections to 303 out of 354 companies over the past two and half years. Sources in the sector said at least five ambassadors from different foreign missions have recently requested the government to supply gas to interested companies belonging to their respective countries. A government official said 2,400 more applications for industrial gas connections are pending for the past few years. These applications were submitted at a meeting of the high-level committee, held on February 9, at the Prime Ministers Office (PMO). The committee has not taken any decision as the gas crisis has worsened this winter. Engineer Mir Mosiur Rahman, a source, told The Independent: No instruction to provide any gas connection has been made by the committee on February 9. When asked, he told The Independent: I am not a member of the high-level committee, but as the chief of the distribution committee, I was present at the meeting to give replies to all kinds of queries. The committee reviewed the situation, saying that the flow of gas would not permit any new connection, even though there is massive demand from all quarters. Sources said the embassy of the Netherlands has requested the ministry to provide a gas connection to International Classic Knitwear, located in Jaidevpur. The Japanese ambassador in Dhaka, in a letter, expressed his concern over the fact that his country has invested in PM Textiles, which is run by natural gas, but the gas pipeline connected to the textile mill can also be used by the distribution company. This fact could have a deleterious impact on Japans interests, he noted, as the gas pressure at the mill could drop. The German embassy recently requested the Akij Paper Mill be given a gas connection as it is almost ready to run. The South Korean embassy, too, has requested such a connection for a fast-food chain. The Indian high commission has also sought a gas connection to an industrial unit of the ACI Group. On July 12, 2015, the committee instructed gas distribution companies to give connections to more than 354 new industrial units. But till this month, only 51 industrial units have been connected, with the remaining 301 not getting any connection. To make matters worse, a list of appeals from 1,564 other industrial units has been prepared for submission to the committee. A report on gas connections submitted to the committee reveals that 33 unconnected industries have been suffering due to inadequate gas pipelines and 134 approved applications are currently in the process of being connected. The remainder139 industrieshas not yet communicated to the distribution companies for gas, which has surprised the committee. We did not receive any communication earlier from the industry-owners approved by the committee, but they are now communicating with us for their connections, said the managing director of Titas Gas Distribution and Transmission Company, Mir Mashiur Rahman. Mohammed Nasir, first vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Independent, We are facing some challenges in the international market, but we are more concerned about the gas, because this is the main challenge facing industrial growth right now. We are setting up industrial units, particularly garments factories, while complying with the buyers conditions. Business houses are paying bank interest. But they are not able to do any business, and that is because there is no gas connection. In reply to a journalists query, the state minister for energy and power, Nasrul Hamid, has reiterated: The gas supply would be normal at the end of 2018, when imported LNG would be injected into the national grid line. The country is now producing only 2,700 MMCF gas per day whereas the demand is more than 3,200 MMCF. In 2018, the imported LNG will be up on the national grid. It would become much easier to provide gas connections then, the government official said.