Dhaka: Lack of fuel reservoir and proper supply chain to the rental and major power plants remains an Achilles’ heel in government’s plan for generating 2220MW electricity by 2014 under a blueprint devised for the top-priority sector, officials said.

“Although the government has taken some steps, these are not enough to ensure secure backup for fuel supply, which will be a major challenge for us,” chairman of Bangladesh Petroleum Corporation (BPC) Anwarul Karim told banglanews24.com.bd.  
 
Currently, the government has planned to set up reservoir where it may store 21000 tons of high-speed diesel (HSD) and 55000 tons of furnace oil (FO) to fuel the power plants in the next two years.

The government is going to invite international tender in this regard and also negotiating with Qatar and Kuwait in the oil-rich gulf for the requisite fuel oils for these projects.

However, a decision to ensure country’s necessary fuel reserve is yet to be made.   

The Power Division will require 3.20 lakh tons of HSD and 8.8 lakh tons of furnace oil for 23 rental and IPP (Independent power producer) plants.

The BPC has a storage capacity of 181,325 tons of HSD and 77,318 tons of FO with its four oil-marketing companies - Eastern Refinery Limited, Padma Oil Company Limited, Jamuna Oil Company Limited and Meghna Petroleum Limited.

If the corporation fails to invite tender to expand storage capacity of these four companies, the supply of fuel to the proposed power plants will be impossible, Karim said.

The plan is also associated with Bangladesh Railways (BR).  

Meanwhile, the Ministry of Power, Energy and Mineral Resources had requested the BR to establish 14 kilometers of new railway tracks to ensure fuel supply to the 10 proposed power plants within December last year. But the BR failed. And that compelled the Power Division to decide to bind BR and BPC with an agreement.

The BPC will have to supply 1,450 tons of diesel and furnace oil to 10 proposed power plants by freight trains to facilitate generating 630MW electricity by 2011, as per the contingency plan.

If the BR fails to establish the tracks by December, the Energy and Mineral Resources Division will not be able to transport the fuels to the plants, a senior official of the ministry said, on condition of anonymity.

Seven kilometres of railway tracks will be required between Pachuria and Faridpur, 1.5 kilometres each in Hathazari and Thakurgaon, two kilometres each in Jamalpur and Khatakhali to ensure supply of diesel and furnace oil, according to officials.

The BR will also have to repair the existing railway tracks in Dohazari and Santahar to do the job.

"We have requested the Ministry of Shipping to dredge different river points to transport fuel through river routes, which is yet to be implemented," Karim said.

"How the government plans will be implemented? The main challenge is to ensure primary fuel to implement the series of projects," said another source.

BDST:1930, 31 may,2010-05-31
HA/FA/AK/MUA