World Bank to provide $250 million for boosting natural gas efficiency project
The World Bank will provide $250 million for ‘Natural Gas Production Enhancement and Efficiency Project’ to increase availability and affordability of electricity by improving access to natural gas fuel for power generation through gas sector efficiency enhancements.
According to an updated project report of World Bank, the proposed project would comprise design and implementation of energy sector policy, regulatory, institutional and investment measures to reduce unaccounted-for gas (UFG) from the current level of about 8 percent to closer to international norms (around 1 percent), which would involve: (a) pipeline replacement to eliminate leakages and reduce technical losses; and (b) modernised metering and control systems. The investment component may approximately cut UFG in half, or better, depending on the project’s impact on gas theft.
It would reduce residential consumers’ gas consumption through pilot projects to replace old gas appliances (space heating and/or hot water) that have low efficiency (20-30 percent) with modern, efficient appliances (efficiency 50-70 percent), the report said.
To address the thermal efficiency issue concerning appliances in a broad way with impact beyond the pilot, it would design a gas usage optimisation strategy based on a combination of national priorities and economic costs and benefits, implementation efficiency, and conservation measures. It would enhance institutional capacity in petroleum sector governance, including the regulatory authority (Ogra).
