After a six-year pause, the government will provide new gas connections, on a limited scale, to industrial consumers starting tomorrow.
“Initially, some 355 applicants will get gas connections to run new industrial boilers or increase the existing load of their boilers, from Sunday,” State-run Oil, Gas and Mineral Resources Corporation (Petrobangla) Chairman Istiaque Ahmad told the Dhaka Tribune yesterday.
He said 193 applicants would get new gas connections and 162 applicants would be cleared to increase their existing boiler loads.
On August 20, 2015 a high-level committee led by the prime minister’s energy adviser, Tawfiq-e-Elahi Chowdhury, approved the new connections, Istiaque, a committee member, said.
Some 2,300 applications for new connections, increases in gas flow (load expansion) and relocation of connections have been pending with the four state-run gas utility companies since July 2009.
“After the applications were approved, we issued an office order to the gas distribution companies to start providing the new connections,” he added.
The distribution companies are Petrobangla enterprises.
He said the new gas connections required another 100 million cubic feet of gas a day.
Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry hailed the government decision, calling it “good news” for industry owners who have long waited for gas connections to their factories.
He said more than 1,000 large, medium- and small-scale industries, especially in the textiles sector, were ready to go into production but were not able to move forward for lack of piped gas.
The Petrobangla chairman said the gas distribution companies would prioritise entrepreneurs who had applied for gas connections and whose factories were ready to go into production.
“As our gas reserves are limited, we are very cautious and verify each and every application before making any decisions,” he said.
He said other applicants would also get connections in phases, after the gas utility companies examine their factory sites.
The government has engaged intelligence agencies to gather information on entrepreneurs who have sought new gas connections or increases in gas flow.
Petrobangla officials said the intelligence agencies and utilities companies would verify the information provided in the entrepreneurs’ applications for gas connections.
The government stopped allowing new gas connections for residential purposes on July 13, 2010 and for commercial and industrial purposes on July 21, 2009.
On May 7, 2013 the government decided to allow fresh connections to households where gas distribution networks were already installed.
The decision to allow new connections to industries comes as Bibiyana gas field expects to increase production by 300 million cubic feet a day by the middle of 2015, the Petrobangla chairman said.
Petrobangla currently supplies 2,750 million cubic feet of natural gas a day against a demand for over 3,300 million cubic feet, officials said.
At present, six distribution companies deliver natural gas across the country’s pipeline network.
