Titas plans new gas lines around Dhaka despite supply uncertainty

Infograph: TBS

Despite uncertainties surrounding gas availability, the Titas Gas Transmission and Distribution Company Limited has planned an ambitious Tk5,120.75 crore project to install new gas pipelines to enhance supply to industrial areas in Savar, Dhamrai, Manikganj, Saturia, and Aricha, located around Dhaka.

Officials say the goal is to ensure a consistent supply of natural gas to both existing and new customers within the Titas Franchise Area in the region.

At the same time, under the project, the current gas pipeline of Titas installed beneath the four-lane Joydevpur-Mymensingh and Dhaka-Tangail highways will be replaced.

The feasibility study for the project has already been conducted by the Infrastructure Investment Facilitation Company (IIFC), a third-party consulting firm.

Titas officials say existing natural gas consumers in these areas – industries, captive power producers, commercial and domestic units and CNG stations – are facing serious issues of inadequate supply of natural gas and low gas pressure. This has created a negative impact on relations with the consumers in the area and with Titas.

However, although there are uncertainties regarding gas supply at the moment, the government has initiated large-scale plans to import liquefied natural gas (LNG) in the future, the added.

At present, total gas supply in Bangladesh, including local gas and imported LNG, is around 3,000-3,100mmscfd (million standard cubic feet per day), while the demand stands at around 3,700mmscfd, according to the Gas Transmission Company Limited.

Dr Pradip Chandra Mandal, deputy general manager at Titas, said the government has plans to establish an economic zone in Aricha. Simultaneously, new factories have been established in Savar, Dhamrai, Manikganj, and Saturia. As a result, an initiative has been undertaken to install new pipelines to supply gas to these areas.

However, he added that the government is not currently providing new gas connections outside economic zones.

Officials say the existing gas pipeline has shifted to the middle of the road following the expansion of the Joydevpur-Mymensingh and Dhaka-Tangail highways. This has posed challenges for the repair of the gas pipeline. Additionally, for safety reasons, it is necessary to relocate gas pipelines to the sides of the road.

As a result, it has been decided to move the pipelines beneath these two highways and position them on the side of the road. They added that many industries have already been established in these areas, and the pipeline replacement will contribute to an increase in gas supply.

However, energy experts are sceptical about the effectiveness of the installation of new pipelines amid the current gas supply uncertainty.

Professor M Shamsul Alam, energy adviser at the Consumers Association of Bangladesh (CAB), told The Business Standard that, at the moment, the primary task should be to repair the pipelines with leakages to prevent gas wastage.

"Currently, Titas cannot supply gas to industrial factories in Savar, Dhamrai, and Manikganj. So, installing gas pipelines would not be appropriate. It would not be rational to import expensive LNG and supply it to industrial areas," he said.

Titas officials say the project was initially proposed to be funded by the government, but the finance ministry has recommended seeking foreign loans.

The initial project proposal has already been submitted to the Planning Commission for approval in principle. Following approval from the Planning Commission, the preliminary development project proposal has been forwarded to development partners through the Economic Relations Division (ERD).

According to the proposal, out of the total project cost of $465.52 million, $253.06 million is proposed to be sourced from foreign funds. The project's implementation is targeted to be completed by June 2027.

Improvement of transmission, distribution capacities

Currently, Savar, Dhamrai, Manikganj, Saturia, Aricha, and adjoining areas are served by a 12-inch 150 psig (per square inch gauge) pipeline originating from the Ashulia Town Border Station at the eastern part of Savar. However, the 12-inch 150 psig pipeline from Ashulia Town Border Station, connecting these areas, operates at an extremely low gas pressure, resulting in a no-gas situation during peak hours, according to the proposal.

Under the proposed project, Titas would construct a 24-inch diameter transmission line with a high-pressure rating of 1,000 psig. The transmission line is designed to cover a distance of 62km from Elenga Compressor Station to Manikganj. Such infrastructure is crucial for efficiently transporting natural gas over considerable distances, contributing to the overall gas supply and distribution network in the region.

Besides, a 20-inch diameter distribution line will be constructed from Manikganj to Dhamrai, spanning a distance of 22.752km at 300 psig pressure.

According to the data, the total authorised load of different classes of customers using gas in Tangail, Manikganj, and Savar areas is 312mmscfd, against which the current gas usage is around 200mmscfd. This indicates a shortfall of 112mmscfd gas.

Considering the excellent plant location factors based on road and waterway communications, both the Bangladesh Economic Zones Authority (Beza) and Bangladesh Export Processing Zones Authority (Bepza) have programmes for the future establishment of new industries in these areas.

This initiative aims to address the current low-pressure and no-gas situations in the region and meet the growing demand for gas, estimated at 168mmscfd.

Replacing existing lines

According to the proposal, Titas's existing gas network has shifted in the middle of the newly constructed highway as the Department of Roads and Highways widened the existing road from Joydevpur crossroads to Mymensingh Medical College junction, adding a divider in the middle on both sides and upgrading it to a 4-lane national highway.

This has made it difficult to maintain various types of customer services.

The replacement of the existing gas network aims to secure uninterrupted and safe gas supply, proper maintenance, highway and public safety, and improved customer service.

The total gas demand of connected customers in the project area is 500mmcfd. As the project area is close to the capital city and has good connectivity, there is a possibility of setting up new industrial plants in the future.

Gas supply to Akij Economic Zone and Hamid Economic Zone under the Beza is already in process from the existing gas network in the project area.

According to the feasibility study, the comprehensive recommendations of the consultant are to construct a 215 km distribution pipeline, including 18 km service lines.

Meanwhile, the existing road from Joydevpur to Elenga has been widened and elevated to a 4-lane national highway with dividers on both sides. Subsequently, the existing gas line of Titas has been positioned in the middle of the road. This has created challenges in maintaining various customer services.

An analysis of the gas distribution network within the project area has revealed oversaturation. Therefore, in addition to relocating the pipeline, it is now necessary to construct a new distribution pipeline network of appropriate capacity on both sides of the Joydebpur-Tangail 4-Lane Highway.

According to the survey data, the total connected load of various categories of consumers within the project area is about 250mmscfd.

After a thorough analysis of the existing pipeline network capacity, it has been decided to construct a 227.054km distribution pipeline with a 7km service line.