No metering keeps Titas in the dark over gas receipts
Titas has to pay a bulk gas bill per month to production companies without knowing how much they actually receive from the GTCL
Highlights:
- GTCL supplies 90% gas to six distribution companies
- No meter in 45 out of 70 distribution points
- Titas gets gas from it through 20 points without metering
- Titas suffers 12% system loss
- It receives 2% relief from bill
- No progress in installing meters at gas intake points
Titas Gas Transmission and Distribution Company Limited, the country's largest distribution company, has claimed to suffer 3-12% in system losses with no metering facilities at gas intake points.
The Gas Transmission Company Limited (GTCL), the state-owned largest gas transmission company, supplies around 1500-1,600 million cubic feet (mmcf) of gas per day through 20 meter-less points to Titas.
Therefore, Titas has to pay a bulk gas bill per month to production companies without knowing how much they actually receive from the GTCL. The bill is prepared based on data of gas fields and end use.
Keep updated, follow The Business Standard's Google news channel
The distribution company receives a 2% relief from the bill for system losses, but it believes they are paying more than what they consume.
Taking Titas's concerns into consideration, the Bangladesh Oil, Gas and Mineral Corporation, Petrobangla, recently conducted a survey that found that GTCL delivers gas to the distribution company without metering at the delivery points.
Also, according to the survey report, Titas witnessed a system loss of 8% on average during January-June in 2019, while its average sales stood at 1,380mmcf against the average purchase of 1,500mmcf during the period.
The survey committee has suggested that GTCL install meters at every intake point.
Earlier in 2018, the Bangladesh Energy Regulatory Commission (BERC) issued a similar directive to the GTCL.
Although, two years have gone past since the BERC's directive, the GTCL is still making slow progress in initiating a project to install meters at the gas intake points.
In its third quarter's (January-March 2019) account report, Titas claimed that its system loss was around 12%. They asked the relevant authorities to take necessary initiatives to ensure proper measurement of gas they receive.
Engineer Rana Akbar Haidary, director (operation) at Titas Gas, told The Business Standard, "We have brought the issue to the GTCL's attention. They assured us that they would take up the project to set up the required meters at the intake points."
When contacted, Md Atiquzzaman, managing director at the GTCL, declined to comment on the phone and requested this reporter to send an email. A reply has not been received yet.
In addition to Titas, the GTCL also delivers gas to the remaining five gas distribution companies through 45 points across its transmission system.
Our system loss is not that significant as we receive only 6% of our total demand through these points. However, we experience a system loss of more than 2-3% against the existing allowable zero system loss
Bakhrabad Gas Distribution Company Limited supplies gas to the Noakhali, Cumilla, Chandpur districts after receiving it through 18 intake points.
However, GTCL supplies gas to the distribution company though 10 delivery points, which do not have meters.
Mohammad Zakir Hossain, deputy general manager at Bakhrabad Gas, said they have requested the GTCL to ensure the metering facilities at the points.
"Our system loss is not that significant as we receive only 6% of our total demand through these points. However, we experience a system loss of more than 2-3% against the existing allowable zero system loss," he added.
Speaking about a lack of metering facilities at gas intake points, energy expert Dr Shamsul Alam said, "This is totally unacceptable for us, if it is true. It reflects how technically and intellectually disabled our public organisations are."
All gas supplies should be done through metering at up-stream and down-stream points. The BERC should enforce strict regulations to ensure transparency
"All gas supplies should be done through metering at up-stream and down-stream points. The BERC should enforce strict regulations to ensure transparency," he added.
Currently, the country's daily consumption stands at around 3,091mmcf, which is supplied from local gas fields and Liquefied Natural Gas terminals.
The GTCL receives around 90% of supply from gas fields and LNG terminals and delivers to the gas distribution companies.
