Approximately 12 million cubic feet (CFT) gas is being contributed to the national grid per day by producing gas from two layers of the newly discovered lower zone of Well No 11 of Habiganj Gas Field.

No lower gas zone was found from the 10 other gas wells of Habiganj Gas Field despite the existence of two gas zones were detected through seismic survey.

This is for the first time, successful gas production from lower zone has been made possible by harnessing the manpower drawn from BAPEX and BGFCL without seeking any consultation from the foreign geologists.

New well drilling project in Habiganj and Narsingdi gas field is taken up
at a projected cost of Tk. 83.55 crores and drilling of well no. 11 of Habiganj Gas Field was launched on August 20 last year under the auspices of BAPEX.

ADB to Extend Support to Power, Energy Sectors

Asian Development Bank (ADB) President H Kuroda has assured of the Bank's continued support to Bangladesh for its infrastructure and power and energy sector development.

He appreciated the performance of the caretaker government for its various reforms in political, administrative and economic sectors.

The ADB President's appreciation came during a courtesy call on Chief Advisor DR. Fakhruddin Ahmed at Congress Center on the sidelines of the World Economic Forum meeting in Davos, Switzerland.

Foreign Advisor Dr. Iftekhar Ahmed Chowdhury, CA's Press Secretary Syed Fahim Munaim and Permanent Representative to the UN in Geneva Ambassador Debapriya Bhattachrya were present at the meeting.

BAPEX to Drill Wells in Kapasia Soon

State-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) will start drilling exploration wells soon in the newly discovered Kapasia gas field in Gazipur aiming to tap new natural gas resources

The company has sent a Tk 589.5 million project on drilling of the exploration wells to the Executive Committee of the National Economic Council (ECNEC) for approval.

Soon after completion of drilling of exploration wells for ascertaining recoverable gas reserve, BAPEX will start development of the gas field to produce and supply the hydrocarbon to the national grid, said Managing Director of the company.

He said if the ECNEC approves the project in its next meeting, BAPEX will be able to complete drilling of exploration wells by next year.

According to the BAPEX sources, the expected gas reserve in the newly discovered gas filed in Kapasia is around 385 billion cubic feet (BCF).

BAPEX, a company under the Bangladesh oil, gas and mineral corporation Petrobangla, ascertained the probable gas reserve through a three-dimensional seismic survey conducted in 2006 of the gas field situated under the Block- 8. The government awarded block-8 and 11 to the state-owned gas exploration and production company.

Pipeline on Blaze after Hit by Trawler

A portion of an underwater gas pipeline on the bed of River Turag at Aminbazar in Savar went up in flames recently as the lower part of a cargo vessel pierced through it.

Gas transmission in parts of the capital was disrupted following the accident.

Titas Gas Transmission and Distribution Company Ltd personnel with the help of Fire Service and Civil Defence divers restored the damaged pipeline after many hours of the accident.

The pipeline is about 12 feet under water in the Turag and the damaged portion was about six to eight inches in diameter, said Abul Khair.

The fire died down after few hours after the Titas Gas authorities turned off the supply of gas through the pipeline from Ashulia to Aminbazar.

Residents living in parts of Mirpur, Mohammadpur, Agargaon and Aminbazar said they experienced low pressure of gas following the supply shutdown.

Chevron’s Scholarship Program

Chevron’s scholarship distribution program was held in Srimangal at Nazrul Community Center recently. Scholarships were distributed to students from two schools in Srimangal and two in Kamalganj.

President of Chevron Bangladesh Steve Wilson was present as the Chief guest. In his speech he mentioned that last year Chevron had given scholarships to 72 students, however the number has increased to 120 students this year.

He also mentioned that Chevron will carry on with this initiative to develop the level of education in the area.

Chevron Bangladesh External Affairs Director Naser Ahmed, in his opening speech, talked about Chevron’s various community engagement programs and gave special emphasis to ‘Safety Awareness’.

The scholarship distribution program was organized by Chevron’s Community Affairs Officer Baddrudoza Badar. Present in the occasion was Srimangal Upazilla’s UNO Md. Saiful Islam.

Foundation Plaque Smiling Sun Clinics Unveiled

The foundation plaque for the construction of two permanent Smiling Sun clinics was unveiled in a ceremony at Karimpur, near Chevron’s Bibiyana gas field area. Chevron Bangladesh will provide the financial assistance for the construction of the two clinics.

President of Chevron Bangladesh Steve Wilson was present in the function as special guest. Present among others at the ceremony were the General Secretary of Sylhet Samaj Kallyan Sangstha (SSKS) M Belal Ahmed, Chevron Bangladesh External Affairs Director Naser Ahmed, GPS of the Bibiyana field Vic Lane and other community relations officials, land donors and local leaders.

Steve Wilson said that Chevron has relentlessly been pursuing initiatives that aim to bring about social and economic development in the area.

No Hike in Prices of Fertilizer, Power, Diesel in Boro Season

The government will not go for price increase of power, diesel and fertilizer in the current Boro season though the subsidies on diesel and fertilizer will be over Tk 10,000 at the end of this fiscal year.

Agriculture Adviser CS Karim said the government would continue subsidy on fertilizer at least until the end of the Boro season.

Chief Adviser's Special Assistant for Energy and Power Prof M Tamim told the briefing, “Presently, we don't have any plan to increase prices of fuel.”

Bangladesh Petroleum Corporation (BPC) will incur a loss of Tk 7,000 crore in the current fiscal year due to the administered price of fuel in domestic market, said Tamim, who attended one of the two meetings that focused on the demand and supply of diesel and electricity.

Tamim said it is not possible to run the BPC with huge losses year after year. The government will have to find a way to reduce the subsidy. “We are heading towards a critical situation and we need an alternative to subsidy on fuel and other sectors because the huge subsidies are putting pressure on the national exchequer,” he added.

He said the government has decided to supply electricity to rural areas during the current Boro season on a priority basis. “If necessary, we would go for load management of power in the urban areas,” he said.

“The gap between demand and supply of power is not too high as we have overhauled a number of power stations, and added 200 megawatt of power to the national grid recently,” he said.

The BPC has been instructed to ensure smooth supply of diesel in this Boro season keeping in view the total demand for 8.38 lakh tonnes.

Coal Output at Barapukuria Resumes

The authorities concerned started coal production at a new phase of the country’s lone coal mine at Barapukuria in Dinajpur about two months after suspension of extraction from the mine.

Special Assistant to the Chief Advisor for the Energy Prof M Tamim inaugurated the coal extraction from the phase (1103) of the underground mine that supplies coal to the nearby power plant.

“The mining authorities have successfully started coal extraction from the new phase. It is encouraging that they have shifted all the mining equipment within two months from earlier phase,’ said Tamim.
He went 300 meters below the ground and observed the coal extraction there.

Tamim hoped that the Barapukuria power plant, a concern of Power Development Board, would run its optimum capacity of 250MW to facilitate the irrigation after the resumption of coal from the mine.

“Initially 1,000-1,500 tons of coal can be extracted per day from the phase while the production will eventually go up to 2,000 tons per day,” said the Managing Director of Barapukuria Coal Mining Company Ltd, Mohammad Aziz Khan.

Meanwhile, the Barapukuria 250MW Power Plant has resumed power generation with its two coal-fired units and is believed to help irrigation during the upcoming Boro season.

'Protect Mineral Resources from Lobbyists’

National Committee to Protect Oil, Gas, Mineral Resources, Power and Port has urged the government to protect energy and mineral resources division from the lobbyists of foreign companies.

Hinting at a Special Assistant to the Chief Advisor, Committee Convener Engineer Sheikh Muhammad Shahidullah and Member-secretary Prof Anu Muhammad in a joint statement said, "Despite being one of them who worked as a lobbyist of different foreign companies in favor of gas export, he got the charge of energy and mineral resources division."

Demanding the withdrawal of the decision (appointment of the special assistant), they said if the decision is not withdrawn immediately, then it would strengthen the question: Is the government playing a role to implement the agenda of foreign companies?

Deals Signed for 7 Rental Power Plants

The government has signed contracts with private sponsors for installing seven rental power plants having a total capacity of generating 270 megawatts.

According to the contracts, the private sponsors will set up the plants on rental basis to start commercial production within a stipulated period of 120 days from signing of the deals.
The Power Development Board (PDB) will purchase electricity from the plants for the national grid for next three years.

Electricity tariffs for the proposed plants will be between Tk 2.50 and 3.60 per unit for the gas-fired and Tk 13-14 per unit for diesel-fired plants against the PDB's average production cost of Tk 1.98 per unit.

The government will pay the bills to the power producers in foreign currency-in US dollar-as the tariffs were determined in terms of foreign currency in the contracts.

Later on, the producers can convert the payments to local currency as well.

Former Energy Secy Sent to Jail

Former Energy Secretary Toufique-e-Elahi Chowdhury surrendered to a Dhaka court, being accused in a graft case involving the setting up of three barge-mounted power plants.

The Dhaka Metropolitan Senior Special Judge's Court ordered the accused to be sent to jail, after hearing his plea for bail. Judge Md Azizul Haque granted the accused first class division in jail.

The Anticorruption Commission (ACC) filed the case with Tejgaon Police Station on September 2, 2007, against eight people including former Prime Minister Sheikh Hasina and the former Energy Secretary.

Operators Asked to Obtain License

Bangladesh Energy Regulatory Commission (BERC) has asked all concerned to take license from it for power generation, transmission, distribution and other energy business, including gas and petroleum products.

The BERC in a public notice said as per the provisions stipulated in sections 27 and 28 of the BERC Act 2003, it is mandatory to secure necessary license or enlistment from the BERC for power generation, energy transmission, energy marketing and distribution, energy supply and energy storage.

The entities engaged in power generation (1 MW and above), such as, independent power producers (IPPs), small power producers (SPP), captive power producers (CPP), and power transmission, distribution and supplying agencies, those engaged in transmission, marketing and distribution, supply and storage of natural gas and petroleum products shall obtain license from the Commission, the BERC said.

Besides, the entities which had secured License Sanction Approval Permission before enactment of the BERC Act, 2003 from the government or any other government office/organization under the Electricity Act Presidential Order, Rural Electrification Act, DESA Act, Bangladesh Petroleum Act or Rules made there under for power generation, energy transmission, energy marketing and distribution, energy supply or energy storage, shall have to be enlisted with the Commission, it added.

In case of small plants and in other similar cases below 1 (One) MW power generation capacity, a waiver from obtaining license must be secured from the Commission.

BERC asked all concerned to apply for securing necessary licenses or enlistment in prescribed form by April 30, 2008.