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KGDCL plans for gas rationing in Chattogram


Published : 26 Aug 2022 09:03 PM

The distribution company Karnaphuli Gas Distribution Company Limited (KGDCL) is in trouble as the supply of gas is lower than the demand.  Due to gas rationing, supply to the industrial sector will be cut off for a day.  KGDCL has sent a proposal to Petrobangla in this regard.  If approved, the distribution company of Petrobangla will start gas rationing in the industrial sector next week or early next month.

 According to KGDCL sources, only 550 million cubic feet of gas is coming to the country due to stop of spot LNG import.  According to Petrobangla's announcement, the daily allocation for Chattogram has been reduced from 320 million cubic feet to 271 million cubic feet.  KGDCL has decided to reduce gas supply to Chattogram's industrial sector.  The company has sought Petrobangla's approval to bring gas supply under rationing.

 Petrobangla scheduled 271 million cubic feet of LNG for Chattogram but is now getting 320 million cubic feet of gas.  If gas supply is reduced to 271 million cubic feet from the first week of next month, there will be no option but rationing.  A proposal has been sent to Petrobangla to stop gas supply to the six distribution areas of Chattogram one day a week.  KGDCL authorities will start the rationing process from the first week of September if approval is received.

 It is known that the production of state-owned fertilizer factory Chattogram Urea Fertilizer Limited (CUFL) was stopped due to gas shortage from last July 19 night.  KGDCL used to supply 41 million cubic feet of gas per day to the company.  However, it was restarted in the first week of August as the government gave priority to fertilizer production.  This year on June 30, due to a new contract with the multinational Karnaphuli Fertilizer Company (KAFCO) at a competitive price, gas supply to this factory cannot be stopped for now.  Due to the government's reluctance to shut down the state-owned CUFL due to the rise in global fertilizer prices, the distribution company sees no option but to reduce gas supply to the private industrial sector.

  KGDCL sources said that the import of LNG in the country has decreased compared to earlier.  Due to the increase in the price in the world market, we have to be more careful than before in the supply of gas in the country.  However, there is no gas crisis in Chattogram region yet.  However, no decision has been taken yet to bring gas supply under rationing.  Decisions will be taken with the approval of Petrobangla if necessary.

 According to KGDCL, Bangladesh is currently facing a gas crisis.  As imports are less than the demand, instructions have been given to supply less gas than Chattogram's own demand.  It is likely to come into force early next month.  

Because of which approval has been sought from Petrobangla to bring gas supply under rationing in Chattogram's zonal industrial sector.  He said that the rationing program will be started at the beginning of next month if approval is received.

 According to sources in the distribution department of KGDCL, although the rationing has not started, the supply of gas to various organizations has been reduced compared to earlier.  While KAFCO daily demand is 51 million cubic feet, it is currently supplying 41 million cubic feet.  Apart from this, CUFL is being given 40 million cubic feet, private Abul Khair Group is being given 10 million cubic feet, KSRM is being given 1) million cubic feet, and Regent is being given 4 million cubic feet.  On the other hand, among the four gas-based power plants of Chattogram, 32 million cubic feet of gas is being supplied to unit number 1 of Raojan power plant.

KGDCL distribution department sources private companies have been informed to reduce gas consumption as much as possible, but none of them are complying.  Due to which KGDCL is thinking of meeting with traders to supply gas to everyone as per demand.  Due to the government's proposal to shut down power supply to regional industries for one day, gas supply is also being considered to be shut down on the same day.  KGDCL authorities believe that it will be possible to adjust the daily allocation for Chattogram to 271 million cubic feet