Tuesday, March 31, 2009

Bangladesh- Bid to Install New Gas-fired Power Plants Falls Flat

The Bangladesh government's plan to install new gas-fired power plants in the country to mitigate nagging electricity crisis falls flat due to the perennial gas supply crunch, official sources said.
Despite supplying of gas exceeding the field's production capacity, the power plants having the generation capacity of around 650 megawatts (MW), almost 20 per cent of the country's total generation, remains idle for long due to gas shortage, a senior energy ministry official said.
Currently, the country is supplying natural gas at around 1,880 million cubic feet per day (mmcfd), against the demand for over 2,050 mmcfd, while the electricity generation is hovering around 3,500 MW against the demand for over 4,500 MW.
Chevron-operated Bibiyana gas field is now supplying 620mmcfd of gas, about 24 per cent more than its approved official production capacity of 500mmcfd, risking the field structure.
A number of gas fields operated by state-owned gas companies and international oil companies are also supplying gas overstretching their capacities to provide additional gas to power plants.
The power division will require at least 150 mmcfd of gas only to generate electricity from the plants now lying idle, let alone from the new ones.
But as per Petrobangla's existing work-plan the country could get a maximum of 155 mmcfd of gas from its discovered gas fields by 2011.
This additional 155mmcfd of gas will be produced from Titas, Bakhrabad, Meghna, Shahbazpur and Semutang gas fields.
Additional gas production from the state-owned gas fields depends on discovery of new structures, a senior Petrobangla official said.
To come out of the catastrophic gas crisis, Petrobangla recently asked Chevron to augment gas production by around 70 mmcfd from its Jalalabad gas field.
But the net gas supply from Chevron-operated gas fields might go down after addition of new supplies from Jalalabad field, as it would have to lower the Bibiyana production to its official production capacity, the Petrobangla official said.
Besides, a number of new small independent power plants (SIPPs) and rental power plants (RPPs) that got approval from the caretaker government would consume around 100 mmcfd of gas shortly deteriorating further the prospects for new gas-fired power plants.
Sensing worsening gas-supply situation the Japan International Cooperation Agency (JICA) is mulling to pull back from its funding commitment for the installation of the 450MW Bheramara power plant.
The World Bank is also showing apathy to fund installation of the 450MW Bibiyana power plant.
The bid submission deadlines for Bibiyana power plant and 300MW Sidhhirganj peaking power plant have already been extended by over a month.
"Country's gas fields are now supplying to the maximum," Energy Secretary Mohmmad Mohsin told the Monday.
He said a number of gas-based power plants got approval without getting confirmation of gas supply.
Echoing the view, Petrobangla chairman Jalal Ahmed said: "We did not ensure supply of gas to the new gas-fired power plants."
We clearly stated that gas would be supplied to new gas-fired power plants subject to availability of adequate gas supply.
Development of the energy sector is, however, among the top priorities of the government with pledges to increase electricity generation to 5,000 MW by 2011 and to 7,000 MW by 2013.


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