Energy & Power

Snapshots

Advisory Body Consents to Titas's 25% Share Offloading

State-run Titas Gas Transmission and Distribution Company Ltd has received consent from the Advisory Committee on Economic Affairs to offload its 25 percent stake on bourses. “Titas Gas can offload its shares within the next two to three months into completion of all necessary procedures,” Finance Advisor Dr AB Mirza Azizul Islam told reporters after a meeting of the advisory committee.

He hoped offloading of shares by the gas company will provide an opportunity for the common people to get involved in a state-owned enterprise, and also to bring accountability in the organization. The advisor said although a ministerial meeting had proposed for offloading 49 percent shares of Titas, the advisory committee gave the go-ahead for offloading 25 percent.

Earlier in last month, Titas Gas at an extra-ordinary general meeting decided to offload its 25 percent shares worth Tk 215.30 crore to the public through the two stock exchanges in the country. The Titas Gas will float a total of 21,550,335 shares through the Investment Corporation of Bangladesh (ICB). At the EGM, Titas also decided to raise its paid up capital to Tk 862.01 crore before offloading shares. The company has already increased its authorized capital to Tk 2000 crore from Tk 350 crore and reduced the face value of per share from Tk 500 to Tk 100.

In the meeting, the advisory committee also decided to import 1 lakh tonnes of fertiliser from Qatar and the United Arab Emirates.

Chevron to Conduct Seismic Survey in Moulvibazar

Chevron Bangladesh will conduct a seismic survey in an area of 152 square kilometers in Moulvibazar including parts of protected Lauachhara forest, President Steve Wilson told journalists at a media briefing in Dhaka.

In addition, Wilson said the US oil giant has been approved in pre-qualification in a project tender which closed last week for a 450 megawatt power plant in Bibiyana and will submit a detailed proposal until the first quarter of the next year.

The aim of the six-month seismic survey starting coming January is to evaluate additional reserves. "The performance of the Moulvibazar field so far suggests that it is bigger than what we initially thought," Wilson said.

The current capacity is 75 million cubic feet per day (mmcfd). A 50 percent production increase would make it possible to produce additional electricity for one million homes, Wilson added.

Cyclone: Cellphone, Solar Panel Saved Many Lives

Mobile phone communication and solar panel power are literally saving many lives in the remote cyclone hit areas, and greatly helping rescue and relief operations.

A large number of villages in the hard-hit southwestern region of the country had been using solar panels for the last few years to get limited electricity. Many of the more than 50,000 solar panels in the region have been destroyed in the cyclone but a good number of those are still operating.

The cyclone shattered the life and living of people in this region. Using mobile phones, which are now being powered by solar panels, many of the affected people are maintaining contact with the rest of the country.

Following the cyclone, the country's power system tripped and most part of it remained without power for the whole day. This caused the mobile phone network stations, many of which were running on back up batteries, to stop functioning.

According to the Infrastructure Development Company Ltd (IDCOL) that has been financing all the home solar power projects in the country, the southwestern region has more than 50,000 solar panels. Fifteen non-government organizations (NGOs) and micro-finance bodies have been helping people install the solar panels since January 2003.

A private sector financing body created by the government with the help of the World Bank, the IDCOL has so far pumped in Tk 200 crore as loan and another Tk 60 crore as grant for the solar power project. The grant was given to projects aimed at very poor people in the most remote areas. Till recently, IDCOL has financed installation of 1,60,000 such solar panels.

"The NGOs and micro-finance bodies like Grameen Shakti, Brac Foundation, Srijani, Coast Trust etc are providing solar panels against a credit range of Tk 18,000 and Tk 60,000. Most of these panels cost between Tk 24,000 and Tk 30,000," said an IDCOL official.

A set of solar panel usually provides between 50 and 75 watts of power. Power is stored in batteries charged by sunlight during day and is used at night to light up four small tube lights, charge cell phones and run a black and white television. This power runs for four to five hours each night.

The solar power scheme had been more than a success. The IDCOL had a target of financing 50,000 solar panels by 2008. But it has already financed more than 1,60,000 sets by this year.

Siemens Signs Deal with PGCB

Siemens Bangladesh Ltd and Consortium of Siemens Ltd India recently signed a contract with Power Grid Company of Bangladesh (PGCB), an enterprise of Bangladesh Power Development Board, for the design-build and turnkey contract for construction of 132/33 kV substation.

The total contract value is US$4,251,022.38 plus Tk115,024,160. This project is financed by PGCB. The works under this contract includes design, supply, installation, testing and commissioning of a new substation at Niamatpur

Mohammed Salim, company secretary of PGCB, Jose Joseph, general manager of Power Transmission and Distribution (PTD), and Nishi Saksena, manager (commercial) of Siemens Ltd, India signed the contract on behalf of their respective companies.

ABM Harunur Rashid, managing director of PGCB was also present.

Summit Power subsidiaries sign deals with Energypac

Summit Purbanchol Power Company Limited and Summit Uttaranchol Power Company Limited, the subsidiaries of Summit Power Limited, have signed deals with Energypac Engineering on design, engineering, procurement, supply, manufacturing, erection, installation, testing and commissioning of transformers and other equipment for three 33 MW capacity power plants.

Under the signing, Energypac Engineering will supply 20/25 MVA, 12.5/15 MVA, 11/33 kV power transformers and 750 kVA, 11/0.415 kV station transformers with necessary equipment, materials and related works for the three each 33 MW capacity power plants to be set up at Rupganj in Narayanganj; Jangalia in Comilla; Maona in Gazipur and for 11 MW power plant at Ullahpara in Sirajganj. Total numbers of transformers to be supplied under these contracts are 14.

ANM Tariqur Rashid, executive director (Planning & Development), has signed the contracts on behalf of Summit Purbanchol Power Company Limited and Saiful Alam, executive director (Operation & Maintenance), signed the contracts on behalf of Summit Uttaranchol Power Company Limited. Rabiul Alam, director and CEO of Energypac Engineering Ltd, has signed both the contracts on behalf of his company.

Summit Power Limited has successfully established three power plants for sale of electricity to Rural Electrification Board (REB) under Build, Own and Operate basis at Savar, Narsingdi and Comilla and generation of electricity commenced in the year 2001 from three power plants each with a capacity of 11 MW. The company has already expanded its total generation capacity to 105 MW. With the establishment of the new projects generation capacity will be raised to 215 MW.

Dhaka Urges Islamabad to Give Reports on Explorations before 1971

Bangladesh has requested Pakistan for an access to geological and geophysical drilling data and reports of oil and gas explorations conducted before 1971 lying with the Geological Survey of Pakistan (GSP) and Oil and Gas Development Company (OGDC), a Pakistani newspaper reported.

Bangladesh has also sought help from Pakistan in identification and development of mineral based industries and has asked for provision of data and sharing of expertise and experiences in the utilization of mineral resources.

"Bangladesh has also requested Pakistan for support of GSP and sharing of expertise and experiences of Pakistan for development of seismic monitoring system and mapping activities of active defaults in Bangladesh," the Daily Times, Pakistan reported.

Pakistani side has assured the Bangladesh government that geological, geophysical data in respect of some areas of Bangladesh are available in the directorate general of Petroleum Concessions, Petroleum and Natural Resources ministry and Pakistan is ready to provide Bangladesh those data that would help for identification and development of mineral based industries in Bangladesh.

Pakistan has also informed Bangladesh that its embassy in Islamabad can collect the data to identify and develop the mineral based industries in Bangladesh.

Iranians Offer to set up Small Oil Refinery
Iranian business delegation now in Dhaka showed keen interest in jointly setting up agro-based industries, small-scale oil refinery, production of lubricant and industrial machinery.

"We are producing 40 percent of our own machinery, which are used in food and agro-based industries. Our lubricants and engine oil are best in terms of quality and competitiveness," said Farshid Monouchehri, who was leading a 14-member delegation of the Iran Chamber of Commerce Industries and Mines, Mashhad branch.

The delegation had talks with leaders of Bangladesh Federation of Chambers of Commerce and Industry (FBCCI) at its office.

Priority Given to Installing 3 Big IPPs

The Power Division has given priority to installation of three big independent power plants (IPPs), each with 450 megawatt (MW) generation capacity, considering the availability of gas in their project sites.

The present government has decided to set up the IPPs by private entrepreneurs at separate locations-- Bibiyana, Sirajganj and Meghnaghat-III - to ease the country's nagging electricity supply shortfall.

The Power Division initially planned to float international tenders for all the three IPPs at a time to expedite the pace of their installations. But the country's existing poor gas production capacity and distribution system is forcing the power division to float international tender step-by-step, a senior Power Division official said.

He said the power division has first floated international tender for installation of the Bibiyana IPP as gas is readily available there.

Experts Stress Increasing Use of Natural Gas

The government is not in a position to raise fuel prices though it is necessary to do so for adjusting the local prices with the surging oil prices in the international market, said the Finance and Planning Advisor, Dr. AB Mirza Azizul Islam, at a seminar recently.

Experts there underlined the urgent need for increasing the use of natural gas to decrease import of petroleum products and for helping local companies to increase the exploration of oil and gas. They also proposed upward adjustment of fuel prices to make up for losses incurred by state agencies and provide the poor and vulnerable groups, such as farmers, with targeted subsidies to protect them from fuel price-hikes.

“We need to consider this [price adjustment] but everything desirable is not feasible. I understand the need for price adjustment and also targeted subsidies,” said the Adviser. The Media Foundation for Trade and Development and the Global Bangla Foundation jointly organized the roundtable on 'Surging Oil Price and Need for a Global Mitigation Fund' at the National Press Club.

It was addressed by the country director of the Asian Development Bank, Hua Du, economist Sajjad Zahir, former commerce secretary Suhel Ahmed, journalist Sadeq Khan, energy expert Nurul Islam, former secretary Siddiqur Rahman Chowdhury, Wali Bhuiyan, president of the Foreign Investors' Chamber of Commerce and Industry and economist Mahbub Ullah.