FHM Humayan Kabir

The government will lay 845-kilometre pipeline at a cost of Tk 5.9 billion to supply gas to the southwestern region and run 1150-megawatt (mw) capacity proposed and existing power units, and other consumers, officials said.

The state-run energy corporation -- Petrobangla -- has said that natural gas supply through the pipeline would help boost economy of the less developed southwestern Khulna region.

The corporation has recently sent the project proposal to the planning ministry to get approval of the government's highest project review body ECNEC.

After getting the nod of the ECNEC, the Petrobangla will start laying the pipeline from January next year and complete its work by December 2012.

The pipeline will supply gas to Khulna, Jessore, Bagerhat, Kushtia and Jhenidah districts.

A senior Petrobangla official said his organisation will be able to supply gas to the existing 110mw and 60mw power units in Khulna and to another 60mw unit at Bheramara, now running by diesel and furnace oil, through the pipeline.

Besides, the planned 210mw and 110mw power plants in Khulna and 450mw plant at Bheramara will also get gas connection after completion of the pipeline installation, he told the FE.

"We are hopeful that the country's gas production will go up by 400 million cubic feet from its existing and new gas fields by 2012. So, there will be no problem to supply gas to the southwestern region," the official said.

Absence of gas and adequate power supply are the major barriers to the development of the country's south and north-western regions.

Poverty rate in southwestern Khulna is the second highest in the country as its poverty incidence is five per cent higher over the average 40 per cent rate of Bangladesh.

The government has also started laying transmission and distribution pipelines for supplying gas to the country's another economically underdeveloped north-western region Rajshahi.

The project is expected to be complete by June 2011, Petrobangla officials said.

The director of Petrobangla said out of the Tk5.9 billion cost for the 845-km pipeline to Khulna region, the Asian Development Bank (ADB) will provide US$40 million (Tk2.80 billion) and the rest of the fund will be mobilised from the local resources.

The official said: "Some small and medium industries have already been set up in the southwestern region. If we can ensure gas supply, those will run smoothly and heavy industries will also be set up there."