Petrobangla gives gas supply assurance to 15 power plants

Shamim Jahangir

29 September, 2020 12:00 AM printer

Petrobangla gives gas supply assurance to 15 power plants

State-run Petrobangla has given the assurance of gas supply to 15 under-construction and proposed power plants, subject to the availability of sufficient natural gas in its stock.

The gas-based power plants have sought 1391mmcfd of natural gas to feed their power generators, according to Petrobangla sources.

Of the power plants, Petrobangla has already signed the Gas Supply Agreement (GSA) to supply 360mmcfd of gas to four power plants operated by Reliance Power Ltd, Unique Unit-1, Summit Meghnaghat and Natun Biddut Ltd.

The state-run agency is also preparing to sign GSA to supply another 170mmcfd of gas to three power plants --- Mirsharai Power Plant, United Power Plant and Mutiara Powerpac Consortium.

Another eight proposed power plants---Rupsha, Rauzan, RPCL-Gazaria, Unique-2, Matarbari-CPGCBL, Khulna and Anlima---have also received primary or conditional gas supply assurance from Petrobangla to implement their projects.

Edra Power Holdings Sdn Bhd (Edra), a sister concern of China General Nuclear Power Corporation (CGN), is also seeking the same assurance from Petrobangla.

Petrobangla chairman ABM Abdul Fattah informed the matter to energy and mineral resources (EMRD) recently.

The country has a capacity to supply 3750mmcfd of gas in the grid, he informed the ministry.

He said the Petrobangla will supply gas to newly proposed Edra-WPL Consortium, subject to the availability of new gas supply.

The setting up of the 1000mmcfd capacity land-based LNG terminal will help increase Petrobangla’s capacity to supply gas to new power plants, the state-run agency said.

“The government might allow the Chinese Edra plant subject to rationing gas supply to other plants,” Petrobangla chairman ABM Abdul Fattah told the ministry.

BPDB has sought maximum 1271 million cubic feet per day (mmcfd) of natural gas to feed gas-fired power plants in next six months from October, aiming to reduce its electricity generation cost.

The demand of electricity has been increasing gradually like other years, according to BPDB. But the gas-fired power plants could not operate in full capacity due to shortfall in gas supply.

“Electricity generation cost increased significantly due to shortfall in gas supply,” the BPDB said.

According to the Bangladesh Energy Regulatory Commission (BERC) directive to Petrobangla, the PDB is supposed to receive 1,320 mmcfd of natural gas on average from Petrobangla.

But, it received only 1,114mmcfd on average in the first quarter of the current year, sources said.

The PDB can generate 11097MW of electricity from gas-fired plants out of the total of 20,312 MW.

 PDB incurred a loss of Tk 80.17 billion last fiscal year due to costly power purchase.