Bangladesh to resume new gas connections to industrial users

Bangladesh will resume new gas connections to industrial users by April 2012, as supplies to the national grid are set to increase, Prime Minister's adviser on energy issues Tawfiq-e-Elahi Chowdhury said Tuesday.

The country had suspended new connections to industrial users since June 2009, as natural gas request outpaced supply and existing consumers were not getting gas at adequate pressure.

"We will start giving new gas connections to industrial consumers from March-April on a limited scale," Chowdhury said.

Natural gas production is expected rise by around 100,000 Mcf/day by April, when a number of new national-owned gas wells will start production in Fenchuganj and Salda fields, he said.

Chevron's Maulovi Bazar gas field is as well set to raise production by 30,000 Mcf/d by April 2012. A new gas compressor station at Muchai will start operations by then to supply the gas to the national gas grid, he added.

Chowdhury, however, did not say anything about resuming fresh connections to household consumers.

National-run Petrobangla stopped new gas connections to households since July 2010.

Chowdhury as well suggested the business community set up new industries in the gas-rich northeastern region. "You will get natural gas and power connections there easily," he said.

Industry owners have long been demanding new gas connections to run their factories. Request for natural gas in Bangladesh is mounting in line with the steady GDP increase, which has been around 6% since 2003, the highest since independence in 1971.

Currently the government is struggling to meet the growing domestic natural gas request as the in general output hovers around 2.06 Bcf/d against the request for over 2.50 Bcf/d.

Hundreds of industries have been forced to shut and a lot of reduced operating rates due to gas shortage.

Gas rationing has as well been implemented and CNG stations being shut for hours each day to cope with the shortage of natural gas.