Noted ceramic specialist and bone-china ware innovator in Bangladesh Mahmudur Rahman took over as an Adviser to the Prime Minister for Energy and Mineral Resources affairs in July 2005 following dictated resignation of State Minister of Energy and Mineral AKM Mosharraf Hossain. BNP-led four-party alliance government had already spent 70 percent of its time in the office in the current tenure. Energy security of the country is general and gas security in particular almost slid into corridor of uncertainty by the time Mahmud took over. Mahmud was given the responsibility in addition to his assigned responsibility of Executive Chairman, Board of Investment, the government entity responsible for facilitating foreign investment in Bangladesh.

Since assumption of office the four-party government did very little to expand the reserve resource base of natural gas , augment production or increase the capacity of transmission distribution network. On the other hand gas demand increased in geometric progression to outstrip the production capacity. The overstressed gas system created vulnerability to security of supply. Mahmud took up the challenge of streamlining the activities. In print and electronic media he announced a five-point agenda for implementation in the first six months of his new assignment. One has to bear in mind that not being elected as a Member of Parliament or not being sworn in as minister Mahmud can not legally exercise executive authority. Neither he is responsible or accountable to the parliament or parliamentary committee.
Mahmud had to encounter few disasters. Niko-BAPEX JV caused a second blowout while drilling an exploratory well in the green field area adjacent to ring fenced Chhatak gas field, Barapukuria coal mine problem may cause impediments for continued operation of the mine mouth power plant as and when commissioned. Secretary, EMRD and Chairman Petrobangla were changed in quick succession after Mahmud took over. He however took initiative to fill some voids in the key positions of Petrobangla. However, Mahmud was seriously embarrassed when gas system failed to manage the demand surge in September-October. Power generation suffered, industrialist complained for poor quality gas supply. Gas crisis hit the headlines of print and electronic media. New set of key lieutenants of Mahmud appeared to have got a little perplexed.

Mahmud announced five challenges

•  Bring the system of TGTDCL to halve By end January 2006 of what he found at the time of his take over .
• Recover all outstanding revenues of public and private sector consumers by April 2006
• Invite third round block bidding by January 2006
• Activate ERC meaning fully by December 2005

Introduction e-governance in gas marketing companies

Now that Mahmud has spent almost five months in his office time has come to objectively assess the statics and dynamics of the gas sector during the period.

One must applaud some major breakthrough in the otherwise dormant management of TGTDCL in combating wide scale of corruption and mismanagement. Things cannot be improved overnight as nobody has wonder lamp of Aladin. But Mahmud could successfully manage to protect TGTDCL in taking some courageous decisions for system loss control and revenue recovery. There may be disagreements regarding degree of improvement but none can deny the visible improvements which have been orchestrated. All sensible members of the civil society must lend their helping hands in the fight against gas theft, pilferage and recovery of revenues.

But regarding other milestone the progress is bare minimum. The country urgently needs very aggressive exploration and production efforts both offshore and onshore to discover and develop new resources. The expected inflow of Foreign Direct Investment or investment of indigenous entrepreneurs won’t continue if energy situation remains vulnerable and uncertain. Just imagine Indian industrial conglomerate Tata now seeks government guarantee regarding continued gas supply through out the design life their plants. It is obvious. Nobody would invest billion dollars without guarantee and assurance of long term energy supply. Ironically some of our experts still opine that our own gas reserve may run out by 2015. Then why government is allowing large gas based power plant initiatives to proceed. It is a ridiculous double standard. Mahmud must steer his gears to make authorities go for new round of block bidding at the earliest.

Two very important national companies BAPEX and GTCL may select strategic partners/alliances to undertake development efforts. The financial technical and managerial capabilities of both these companies need to be strengthened Mahmud may ask his men to explore the possibilities of formalizing alliance with Petronas, Pertamina, Sinopec, ONGC, GAIL etc as these are regional energy companies which have prospered and now become regional energy leaders. GTCL and BAPEX are currently undertaking very sensitive infrastructure development projects which essentially would provide backbone for national energy security for long time.

BAPEX and GTCL have resources constraints. They have to rely on GOB funding or assistance of multilaterals. There is acute shortage of competent manpower. In this modern age State Owned Enterprises (SOEs) do not undertake most of the works themselves. They outsource to private sector service providers and manage through skilled managers.. Capital injection from private sector in BAPEX and GTCL will improve their financial capability, properly structured gas pricing and increase of their margin would help them reinvest in facilities development. Lesser reliance on GOB or multilateral funding will expedite project approval and implementation. Companies can spend more on training and human resource development, increase compensation packages to attract and retain competent visionary professionals.

Mahmud must ensure that ERC is activated to its desired level as soon as possible. Relatively younger dynamic professionals are required in ERC. People who failed to deliver during their time in Petrobangla and other government enterprises can not bring new ideas and initiate major positive changes. Energy world is very dynamic. Retired professionals of not too bright track record can not deliver anything. One apprehends ERC in its present shape can not bring any meaningful change. It will have similar fate of Anti Corruption Commission or BTRC.

E-governance in gas marketing companies wills much longer time and efforts. If one visits the Petrobangla website one has every reason to curse them as this is not updated at all. The purpose of having website gets defeated. When Petrobangla does not have motivation to update website then who will ensure that its companies implements and manage E-governance professionally.

However, Mahmud keeps on assuring the nation to remove all worries about gas system security of supply by June 2006. It is a serious challenge and in all probabilities will be extremely difficult to achieve. A newly promoted Additional Secretary from administration cadre has joined as Petrobangla chairman. His task has been well cut out. If matters do not improve drastically in the next couple of months the nation will be plunged into deep energy insecurity.