Gas there, not linked to supply network

$900m investment needed to set up pipelines, double gas production
Experts have found out that the country’s existing gas crisis was created due mainly to lack of adequate pipeline system, not necessarily for unavailability of enough gas.
In a study submitted to the energy ministry late last month, the experts have pinpointed the need to take up a dozen pipeline projects urgently to evacuate gas from upcoming gas production in next five years.
Of these projects, two or three pipelines are cross-country and highly critical. Without these projects, all bids to reduce the country’s gas crisis would fail.
These pipeline projects would need around $900 million investment till 2015, says the study prepared by Petrobangla, Gas Transmission Company Ltd (GTCL) and Titas Gas Transmission and Distribution System Ltd (TGTDCL).
The country’s present gas consumption is 2,000 million cubic feet per day (mmcfd), with a short supply of 400 mmcfd. Of this gas production, foreign oil companies produce a little bit more than the national companies do.
One of the experts noted that if there were adequate pipelines, at least 130 mmcfd gas could have been supplied to the national grid from Jalalabad and Bibiyana gas fields as of today. He added the Jalalabad field has the capability to supply 230 mmcfd gas for a long time, but it was not able to supply that much due to lack of pipeline support.
The country had not taken up any major gas pipeline construction between 2000 and 2009. Some pipeline projects are now being implemented mainly to connect the gas-deprived southwestern region to the eastern region. But these pipelines are not meant to allow an increased supply from the gas fields which are situated in the central and northeastern parts of the country.
“Petrobangla was in charge of the central planning. But it did not play its due role in planning for the pipelines. The GTCL also had a responsibility to review the gas supply system, but there was lacking in its work as well,” one of the experts noted.
“Petrobangla did not even take up the urgent steps that it needed to take in the last 18 months when the alarm bell was already rung. Had it taken those steps, we could have moved a few steps closer to solving the gas crisis,” another expert added.
Moreover, the gas production increase plan of the national and international oil companies would not be enough to meet the next five years’ demand.
According to the study, in 2015 the total gas production would hit 3,818 mmcfd which is almost double of the present production. But at that time, the demand would go up to 4,162 mmcfd.
“These pipelines are long overdue. But it will take some time to take decisions in this regards as there is a planning process to complete,” said Energy Secretary Mohammad Mejbahuddin.
He added financing for these pipeline projects could derive from a combination of sources. Companies like GTCL or Titas could self-finance some pipelines, while the government could fund the rest, he noted.
The study, prepared on the basis of software simulations and data on the country’s gas sector, states that the simulations clearly indicate the need for import of LNG (Liquefied Natural Gas) at an initial rate of 500 mmcfd (million cubic feet per day).
Earlier in April, Petrobangla assigned GTCL and TGTDCL to identify the need for development of additional transmission pipelines and associated facilities for the evacuation of incremental gas production from different fields within 2015.
The experts assessed that the Power Development Board’s plan to nearly double power generation [from present 4,500 MW] requires present gas consumption of 945 mmcfd to be raised to 1,841 mmcfd in next five years.
Chevron has given a clear plan to increase gas production from three gas fields of Jalalabad, Bibiyana and Moulvibazar to 1,550 mmcfd by 2015 from the present 920 mmcfd. The American company expects to add another 100 mmcfd by June 2013 from a new gas field in Patuakhali.
The experts noted that as there was no plan to increase capacity, the fertiliser sector will be consuming a static 280 mmcfd gas in next five years. But they suggested that indigenous fertiliser production should not be interrupted to ensure maintaining adequate fertiliser production for the agriculture sector.
In recent years, the government on several occasions had shut down fertiliser production to increase gas supply for power generation. Experts say this is a bad practice for the fertiliser industry.
Gas demand in the domestic, refuelling and commercial sector [also called non-bulk sector] is rapidly growing and it should be dealt with carefully as it is a sensitive issue for the public. This sector would continue to demand more.
Aminur Rahman, managing director of GTCL, noted, “We need some major pipelines. Firstly, we need one to evacuate extra gas to be produced by Chevron in next three years. We will also need a major pipeline for supply of the LNG.”
He added all of these pipelines must be completed by 2013.
The GTCL has already floated tender for a 30-inch pipeline between Bakhrabad and Siddhirganj and taking up another pipeline project between Bakhrabad and Ashuganj. Both of these would reduce bottlenecks in the present gas distribution system.

Courtesy of The Daily Star