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Industries yet to thrive in gas-rich Bhola

Ashraful Islam Raana
16 Feb 2024 21:22:52 | Update: 16 Feb 2024 21:22:52
Industries yet to thrive in gas-rich Bhola

Ambia Begum (56) with her four children has been living at Latmia slum adjacent to Dhaka embankment for 16 years. Her monthly income is below Tk 10,000. She now grapples with many problems, including unhealthy environment, lack of education and treatment facilities, drug addiction and gang culture.

Ambia Begum said that she used to live in Bhola, but migrated to Dhaka after losing homestead due to river erosion. “Leading a normal life at any slum is very difficult. Even animals cannot live in such an environment,” she added.

Latmia slum is built on a dirty drain where there are least 500 families like Ambia’s. Almost all of them have hailed from Bhola, an island district of Bangladesh.

Several reports show that many people have migrated to Dhaka from Bhola in the last two decades and many slums have turned into ‘Bhola basti’ or ‘Bholapara’.

According to a report of Bangladesh Bureau of Statistics (BBS), Bhola is the top district in terms of internal migration and people here are forced to migrate to two main cities--Dhaka and Chattogram--due to unemployment and river erosion. The annual migration rate is 19.33 per cent.

When the people of Bhola are forced to live the difficult life, this district has huge energy potential. Besides, Bhola, surrounded by rivers and seas, has river ports and cheap manpower. There is easy communication with Dhaka, Chattogram, Mongla and Barishal by water routes.

This correspondent talked with energy experts, government officials, businessmen and local people about the potential for industrial development and employment in Bhola.

They all almost agreed that Bhola could be an area of ​​great potential for industrial development in the country if discovered natural gas could be used locally which will also stop forced migration.

Bhola Chamber of Commerce and Industry President Abdul Momin Tulu told The Business Post that when the world is fighting for energy, Bhola has surplus gas but it is not being fully utilised. He said that heavy and light industries can be developed in Bhola by using local gas.

Industries Minister Nurul Majid Mahmud Humayun visited Bhola recently and told journalists that Bhola has a river port and huge natural gas. “The production costs will the lowest here. So, I think Bhola is very feasible for industrial development.”

 

2 tcf gas reserves

Natural gas was first discovered in 1994 at Shahbajpur village of Bhola. Two more gas fields (Bhola North and Elisha-1) were discovered as of 2023. According to Bangladesh Petroleum Exploration and Production Company (BAPEX), potential reserves in these three gas fields are more than 2 trillion cubic feet (tcf).

Geologist Prof Badrul Imam told The Business Post that from Noakhali's Hatia Island to Bhola is very attractive for petroleum, known as Hatia Trap. Bhola will undoubtedly be a rich energy hub of the country if exploration is increased offshore and onshore.

The government also admits that Bhola Island is currently the most rising energy region of Bangladesh. State Minister for Power, Energy and Mineral Resources Nasrul Hamid recently visited Bhola and told reporters that currently nine gas wells are in Bhola. “We will be drilling nine more exploration wells. Besides, 2D and 3D seismic survey will be done in river and sea areas of Bhola.”

 

Less gas extraction than capacity

State-owned Bapex said Bhola's three gas fields have nine wells, with six in production. The production capacity is 190 MMcfd. When all wells will go into operation, the capacity will be 290 mmcf/d.

However, there is no gas transmission line with Bhola to the mainland of the country. That’s why the daily production is 60-70 mmcf. Currently, two power plants are running at Bhola Gas.

The construction of a gas transmission line under the river has been discussed for a long time, but no progress has been visible.

Nasrul Hamid said that an initiative has been taken to construct a pipeline to take Bhola gas to Khulna via Barishal. This project will be implemented within next three years at an estimated cost of Tk 1,166 crore.

 

Gas converted into CNG at high cost

The manufacturing industry is extremely suffering due to energy shortage. However, there is surplus gas in Bhola. In this situation, private company Intraco Group has been supplying gas to Narayanganj and Gazipur from Bhola since last December after converting it into CNG.

Riyadh Ali, managing director of Intraco Group, said currently 5 mmcf/d of gas is being brought and it will be increased to 20 mmcf/d in a few days. However, there are many controversies over the supply of gas to Bhola by CNG, because CNG price is very high. The government has fixed the per cubic feet gas price at Tk 57. Managing Director of Fakir Fashion Fakir Kamruzzaman Nahid said, “Yes, the price is very high, but we have no option right now but to use Bhola’s CNG.” 

 

High potentiality for industrial revolution

Local businessman Abdul Hannan said when gas was discovered in Bhola 30 years ago, locals dreamed that one day Bhola would become a developed township like Singapore. He regretted that even after a long time, Bhola remained an underdeveloped area and people here are fighting with high unemployment, poverty and climate change.

“Chattogram and Mongla ports and Dhaka have easy water connection with Bhola. There is a surplus of gas and electricity, so where are the barriers to industrial development?”

Bhola chamber says there is no big industry in the district. In 1990, Small and Cottage Industries Corporation (BSCIC) was set up near Bhola town, but its condition is poor because after 33 years, gas connection was given only a few days ago. Many entrepreneurs left the industrial plot before that.

BSCIC industrial plot owner Nazrul Islam told this correspondent that they cannot build a factory for lack of gas. Bhola gas cannot be used in appropriate places. He said that many industries could have been developed here if Bhola had gas connection.

The government is feeling the urge to provide gas for the expansion of industry in Bhola. Nasrul Hamid said that we are giving gas connection to the municipalities of Bhola first so that industries can develop here and people get employment.

The government has started the work of setting up a fertilizer factory in Bhola with local gas. Bhola Chamber said that two industrial groups have already shown interest in investing in Bhola.

Energy expert Saleque Sufee said, using the gas of Bhola, electricity can be produced there and brought to other parts of the country or Bhola itself may develop into a self-sufficient island with industrial revolution.

 

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