During a fuel shortage, the provider of Bhola gas to industrial consumers ‘arbitrarily’ cut off delivery, which hurts businesses on the northern outskirts of the capital, according to sources.
According to officials, Intraco Refuelling Station cut off the supply of compressed natural gas (CNG) to businesses on Bhola Island a few weeks ago because it was unable to give the Government a bank guarantee by the deadline that was estimated to be worth Taka 110 million.
A senior official of the state-run Sundarban Gas Company Ltd (SGCL) informed the local media that prior to its shutdown, Intraco was providing consumers with between 1.0 and 1.5 million cubic feet per day (mmcfd) of gas—roughly one-fourth of its committed supply of 5.0 mmcfd to the factories, especially in Gazipur and its surrounding areas where piped-gas pressure remains low.
Intraco was supposed to deposit the bank guarantee in favour of SGFL by 18th August 2024, according to the deal inked between Intraco and SGCL on the supply of Bhola gas to fuel-hungry industries on the mainland, the official added.
“The company did not invest sufficient money to supply the committed volume of stranded gas from Bhola island,” he said.
Under the contentious Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 (Amended 2021), Intraco secured the contract to provide CNG from Bhola, a bay island district located approximately 282 kilometers outside the capital.
Negotiations with relevant Government officials were the sole means of reaching a contract, as competitive tenders were avoided due to the controversial immunity rule that converted the energy industry into a cash cow for short-term and long-term rental firms.
According to market insiders, Intraco’s deep ties to high-ranking officials in the overthrown Sheikh Hasina government were crucial in securing project approval.
