The five gas distribution companies yesterday started receiving applications from consumers seeking new connections to households.
After three years, the companies initiated the process, following a Petrobangla decision taken on Monday.
Md Nowshad Ali, the acting managing director of Titas Gas Transmission and Distribution Company Limited, told the Dhaka Tribune: “We have received applications from consumers today [yesterday] for providing new connections to households.”
He said the interested consumers who had deposited money against the demand note would get preference in getting new connections while “the government will also legalise the illegal gas connections against penalties.”
The move follows the government’s May 7 announcement of lifting the embargo on new domestic connections.
Over 120,000 applications for household lines are currently pending with the distribution companies. These have accumulated after the government suspended giving residential connections in 2010 following a gas crisis.
“Already some consumers have submitted applications to get new connections for households,” Pashchimanchal Gas Company Limited Managing Director Md Ali Hossain said yesterday.
“We will be in problem if we do not get adequate gas supply to give the new connections,” Jamil Ahmed Alim, managing director of Karnaphuli Gas Distribution Company Limited, told the Dhaka Tribune.
Energy Division Secretary Md Mozammel Haque Khan told reporters on May 7 that there were 58,000 illegal residential connections. He added that around 22mmcfd gas would be required to cover all the new connections including the illegal ones. The new lines would only be given where distribution lines are already available.
At present, only five distributors supply gas through pipelines across the country. Titas holds 63% stake of the gas sales, Bakhrabad Gas Systems Limited 14%, Karnaphuli Gas Distribution Company Limited 11%, Jalalabad Gas Transmission and Distribution Limited 8% and Pashchimanchal 4%.
On April 16, the High Court withdrew its previous order of November 8 last year that barred the government from giving new lines due to supply shortage.
The government stopped giving new gas connections for residential purposes on July 13, 2010 and for commercial, power plants, fertiliser plants and for industrial purposes since July 21, 2009, citing shortage. It then issued a notification and said new gas connections would be given if the production reaches 2,200mmcfd.
Despite the embargo, many people managed to get illegal gas lines in connivance with some corrupt employees and in exchange of bribes. Thus, the government lost a huge amount of revenue due to these illegal connections during the period of the ban.
State-run Petrobangla currently faces a 750mmcfd shortage against the daily demand of around 3,000mmcf.
