Energy & Power

Snapshots

Seismic in Lauachhara: Chevron Keen to Work with GOs, NGOs

International oil company Chevron has shown keen interest in working with the forest and environment departments and NGOs to ensure proper monitoring of its planned seismic survey in environmentally sensible Lauachhara forest in Moulavibazar.

Moulavibazar gas field within the reserved forest has been developed and is now operated by Chevron. It is producing around 75 million cubic feet gas per day (mmcfd).

The company sought such support for proper monitoring of its work so that environmental issues are addressed while conducting the three-dimension (3D) survey.

Considering the country's fast growing gas demand, Chevron moved to carry out the 3D survey, as it believes that such high-tech survey will give better picture of the reservoir and for effective well placement in future. It also believes that the survey may uncover more reserves leading to sustained gas production.

But, officials said, about 20 percent of the total area under proposed survey is within the protected Lauachara National Forest, which is treated as haven of flora and fauna.

Chevron has already submitted the plan for the next month survey to the environment department, which has given the green signal. Petrobangla had earlier approved the plan.

Gas Resources 'Need to be Preserved Only for Urea’

Bangladesh should preserve its gas resources only for production of urea fertilizer instead of running any more power plants in order to help agriculture sector in future.

"We should establish coal-based power plant as gas reserve is projected to dry up by 2013-15," Nurul Amin, Secretary of the Ministry of Industries, said at a seminar.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) organized the seminar on 'Investment Opportunities in Bangladesh' at the Federation Bhaban in the city. About 30 businessmen with the FBCCI Secretary General Syed Jamaluddin in the chair took part in the discussion.

"We must first ensure food security for 160 million people of the country before we go for industrialization," Amin said. There is a need for long-term master plan for industrialization in the country, he said citing the example of chaos at Nandigram in India's West Bengal state that erupted following land acquisition for industrial purposes.

The seminar was also addressed by Bangladesh Export Processing Zones Authority (BEPZA) Executive Chairman, Brig Gen. Ashraf Abdullah Yussuf. Former Executive Chairman of Board of Investment, Nazrul Islam presented the keynote paper.

Petrobangla Allowed for Coal Exploration in Dighapara

The state-owned oil and mineral resources company Petrobangla has received permission to explore for coal in Dighapara of Dinajpur in the backdrop of growing demand for alternative energy sources.

The Bureau of Mineral Development (BMD) has issued the license to Petrobangla which applied for it last year. The Petrobangla might jointly work with foreign companies to explore for coal, official sources said.

Four foreign companies----Asia Energy, Lucson Global, Delta Pacific Mining and Cambridge Energy Resources-- had applied for licenses during 2004-06 period to get exploration license in Dighapara.

The Bangladesh Geological Research Department has discovered coal deposits in Dighapara in 1995 with an estimated reserve of 110 million tons.

Delhi Wants to Supply Bangladesh Village with Solar Power

New Delhi has proposed that India will provide a village in Bangladesh with solar electric supply as part of the energy cooperation initiative in the SAARC region.

The Indian High Commission in Dhaka sent a letter to the Foreign Ministry proposing that Delhi wanted to install solar power systems in one of the villages in Bangladesh for electric supply to 300 home-lights and 50 streetlights.

The Foreign Ministry forwarded the letter to the Power Division.

In the letter, Delhi suggested that Dhaka should send in the names of 2 or 3 villages to choose one from among. A team of experts of India will select the village after visiting the proposed sites.

Govt to Sign Eight Power Deals by Dec

The government will this year sign deals to set up eight new plants to generate 1,800 megawatts of electricity as part of a long-term plan to ease the country's nagging power crisis.

"We will sign agreements with firms for installing two big and six medium-scale power plants by 2008," said Power Secretary M Fouzul Kabir Khan.

He said the bidding process of some of these power plants has already been completed and the remaining ones are at the final stage.

Power Bodies Asked to Expedite Projects

The Power Division has asked power agencies to expedite the different projects for setting up power plants of large and medium sizes that should come into operation in the next two to three years.

A meeting of the division, chaired by M Tamim, Special Assistant to the Chief Adviser, reviewed the progress of a number of government-funded power projects and independent power plants as most of the projects are running behind schedule.

The projects include the five 150 MW power plants at Shikalabaha, Chandpur, Sylhet, Sirajganj and Khulna, one 2x150 MW plant at Siddhirganj and two 450 MW independent power plants at Bibiyana and Sirajganj.

Power Secretary M Fouzul Kabir Khan, Military Institute of Science and Technology’s Commandant Abdul Wadud and other high officials of the Power Division, Power Development Board and Power Cell were present at the meeting.

Govt Rules Out Oil Price Hike before April

The government has ruled out any increase of fuel prices until the end of the current 'Boro' paddy season in April despite soaring losses by the lone state-owned oil importer.

"We have no plan to increase oil prices before the end of Boro paddy season in April," said M Tamim, Special Aide to the Chief Adviser.

"At present, we are not thinking about any upward adjustment of fuel prices despite huge losses by the Bangladesh Petroleum Corporation. Fuel prices will remain the same at least until the completion of the rice irrigation season in April," he said.

"The government's main aim is now to increase the output of rice at any cost and farmers will continue to get cheap diesel to irrigate their rice field," said Tamim.

ADB for Hike in Oil, Gas Prices

Asian Development Bank (ADB) reiterated the need for raising gas and oil prices and making the subsidy policy in this sector transparent.

"Many of you may not like it, but it is very important for Bangladesh," ADB Country Director Hua Du told reporters after a meeting of the visiting ADB mission with Finance Advisor Mirza Azizul Islam at his office.

Deputy Director General of ADB's Private Sector Operation Department S Chander led the three-member consultation mission on "Private Sector Project in Power and Energy".

Hua Du, however, made it clear that the government would take decision about the suitable timing of adjusting the prices. "The prices should be adjusted to some extent commensurate with the level of subsidy," she said, replying to a question.

The ADB country director said the subsidy policy should be transparent and the people, who could afford the price, should not get it. "I'm getting the subsidy; it's not right," she said, adding that the subsidy should go to a target group of people--the poor and the farmers.

She said the ADB mission had talks with the Advisor on how the bank could better work to support development of Bangladesh's energy sector--gas, power and coal.

ADB has already been involved in the power and gas sector development of the country while it is now interested to support the coal sector development. "We've discussed on a package in energy sector development project," Hua Du said.

Energy Ministry Concerned over Gas Seepage in Titas Field

The Energy Ministry is concerned about the non-stop gas seepage in the country's largest Titas gas field at Brahmanbaria as a recent work by a foreign company failed to heal the problem permanently.

"US-based international blowout expert company M/s Boots & Coots has been able to kill Titas's 40-year old well no. three, but failed to check gas seepage in the entire field area," M Tamim, Special Aide to Chief Advisor told the Dhaka media.

He said the Boots & Coots was given task to kill the well on the assumption that the seepage was originating from the old well and splitting through the entire area.

Titas is the country's oldest gas field with the potentials of recoverable gas reserves of around 4.0 trillion cubic feet. The field has a total of 16 wells, of which 14 are operational and the daily average gas production from the field is around 400 million cubic feet (mmcf), almost one-fourth of the country's total daily production.

"So, all out efforts must be taken to protect this huge gas reserves at any cost. Each of the Titas wells needs to have a check-up so that the gas seepage in the entire gas field stops permanently," said Tamim.

He said, existing gas production from the Titas gas field must remain uninterrupted for the sake of industrial production and power generation. International companies might be invited to complete the work as the local state-owned company BAPEX has dearth in technical know-how to carry out the job, he added.

CNG Price to Rise

The government is likely to increase the price of compressed natural gas (CNG) to around Tk 15 per cubic meter from the existing price of Tk 8.5 by March.

The top level of the government already gave the nod to the Energy Division to complete the groundwork for increasing the price of CNG in consultation with the Communications Ministry, they said.

“We have already informally discussed with the Communications Ministry our proposal to increase CNG’s price to Tk 15, and they have made a positive response. The division will hold further discussion with the ministry before making the final decision on the price-hike,” said an Energy Division source.

“Decision-makers in the government have agreed in principle that the price of CNG should be increased as the high-income people, who are getting CNG at almost no cost compared to the price of octane and petrol, are reaping the benefit of the subsidized price of CNG,” said another official.

Officials said that the price of taxi and auto-rickshaw fare should not rise with the hike of CNG price as the fare was set on the basis pf petrol price.