Natural gas allocation policy draft ready
Golam Mostafa: No Compressed Natural Gas (CNG) will be supplied for plying of vehicles as the government plans to encourage the use of Liquefied Petroleum Gas (LPG).
The government has taken such decision to tackle the misuse of natural gas in the transportation sector.
The use of LPG will be increased in the domestic and commercial sectors instead of natural gas. Besides, the initiative has taken to shut down the inefficient captive power plants, increase the use of alternative fuels in manufacturing sector and set separate gas prices for the large enterprises.
Meanwhile, a draft of Natural Gas Allocation Policy-2019 is ready to place in an inter-ministerial meeting set to be held today (September 9) with the initiative of Energy and Mineral Resources affairs Ministry for finalise.
An official of the concerned ministry said, the draft of the policy has been formulated giving preference on the country’s development goals, domestic natural resources, international gas situation, changing demand and technology. It has also given emphasize on the importance of industrialisation and the proper use of resources.
The policy stated that the demand for electronic, hybrid and battery driven vehicles is increasing worldwide. The demand of auto-gas is also increasing day by day.
If a cylinder of any vehicle is filled up with the auto-gas, the vehicle can cross four to five times long distance compared to the CNG driven vehicle. In addition, LPG is comparatively a safe, reliable and low-risk fuel.
With the aim to energy diversification, it is logical to encourage the use of auto-gas instead of CNG in the transport sector. Besides, regulatory support will be provided for the supply of LPG instead of natural gas in the residential and commercial sectors.
In the policy, the industrial sector has got the highly priority in context of getting gas. Next priority has been given to the fertilizer, power and tea garden sector. Domestic sector has also got space at the end. A number of initiatives have been taken up in the new policy for the sake of proper use of gas. Of them, use of high quality equipments and ensuring metering system at all stages are significant.
The policy further states that, the ministry will undertake initiatives to encourage the import of energy efficient appliances and provide incentives to the consumer level. It will also start audit system to the establishments, which use high quantity of gas. The energy audit farm which is approved by SREDA will carry audit activities. In the policy, it has been asked to prepare an allocation calendar with a view to measure the amount that how much gas will be supplied to each sector. There is a plan to start separate pricing system on the basis of needs especially for the big gas users. The government will create a database of the gas users, who use high quantity of gas.
The sectors which will keep highly contributions in the national economy will get highly preference.
In this context, the industrial sector will get highly priority, while the domestic sector will get less important categorically.
The rate, which is currently supplied to the power sector, will be reduced.
Maximum 50 percent of the total supply will be given to the power and captive power sectors.
Currently, 320 crore cubic feet of natural gas is being supplied a day in the country. Out of this, the domestic production is 270 crore cubic feet. Besides, LNG is being imported to meet additional demand in the country. The price of imported LNG is much higher than locally supplied gas.
Government wants to ensure uninterrupted supply of gas to achieve the goals of Vision-2021 and Vision-2041.
As importing of LNG is very expensive, the priority will be given to those gas-based sectors or companies that assist to save and earn foreign currency.
Besides, the gas will be provided to the economic zones and planned industrial areas on the basis of importance.