Chhatak Gas Field: Energy Division Recommends Approval of Niko's Plan

The Energy Division has recommended approval of the plan of Niko for developing the Chhatak gas field and sought decision from the Prime Minister's Office (PMO).

Concerned officials said Energy Adviser Mahmudur Rahman recently sent a letter with replies to some queries made by the PMO. Earlier the PMO had sent back a similar recommendation of the Energy Division for queries.

"The Energy Division asked Petrobangla to give its views on the queries and sent them to the PMO," said a concerned official. He said that the Energy Division in its latest letter explained Petrobangla's views as to why the development plan is needed to be given the approval.

A source at the Energy Division said that there is no legal barrier to giving approval to the development plan of the Canadian company despite a case field against its activities by Bangladesh Environment Lawyers' Association (BELA). The case is pending in the court.

Niko had submitted the development plan for Chhatak gas field, known as Tengratila, late last year after the fire at the gas field that experienced twin blowouts was extinguished.

Executives of Niko said that a rig, hired by the Canadian company, has been sitting idle in Bangladesh for drilling a couple of wells at Chhatak as per the development plan. They said that the Niko recently sought permission of Bangladesh Bank to re-export the rig as the company cannot bear the cost of the rig anymore.

Brian Adolph, country manager of Niko Bangladesh, said: Niko spent US$ 50,000 per day as rent of the rig in October-November, 2005. We are counting US$ 15,000 per day since December.

Canadian High Commissioners in Bangladesh Barbara Richardson in a letter to the Energy Adviser Mahmudur Rahman requested to resolve the matter as soon as possible.


Power Crisis Forces WASA to Suspend Operations for 11 Hours Daily
Power crisis is forcing the Dhaka Water and Sewerage Authority (WASA) to suspend its water lifting operations for more than 11 hours daily on average in each of its total 421 pumps.

"The situation is worsening. All the areas of Dhaka have been affected by water crisis except the Mintu Road (residence of ministers), Eskaton, Siddeshwari Road and part of Motijheel," said a Dhaka WASA official.

Referring to suspension of production in 80 pumps for 217 hours in February 22, he said the situation is getting worse day by day. "If the situation continues, it will be tougher for us to meet the daily water demand in the city," he said.

Sources at the Dhaka WASA said the effect of the power shortage is multifarious. "It takes three hours to resume operation of a pump if it suspends production for one hour," said another official of the WASA.

The daily demand for water in Dhaka city is 2.0 billion liters against the supply of 1.5 to 1.6 billion liters each day. Currently the production capacity of the Dhaka WASA is 1.73 billion liters per day.

Officials said the WASA cannot utilize its full production capacity due to interruption in power supply. At present, the WASA has 421 deep tube wells, 4 water treatment plants (WTPs) and 22 mobile vehicles to supply water to the city dwellers.


Severe Power Crisis: SSC Examinees Suffering
The massive loadshedding not only in the peak hours, but also during the day time across the country has pushed the examinees of the SSC examinations beginning on March 9 into great sufferings.

Concerned officials said that the situation is likely to improve a bit in the beginning of March, but would deteriorate in the mid-March.

The sufferings of the examinees will worsen at that time.

"Now there is no difference between the day and night.... We get no electricity most of the time. How our children will take preparations," said Nasrin Begum, mother of SSC examinee Rahat and a resident of capital's Shantibagh area.


Tata yet to Respond over its Investment

The Tata Group, supposed to submit its final proposal on gas price within two weeks, is yet to be responded although the timeline expires on February 22.

Energy Advisor and Board of Investment executive chairman (EC) Mahmudur Rahman said that his office has not been informed about the final proposal to be sent as a package in the ministerial level.

"But it's not our headache," the advisor said adding that it is Tata's subject how much time they would take.

Earlier, the fourth and final round of talks between the Indian industrial giant and the government concluded on February 8 without any decision on gas price.

The BoI EC hopes that Tata would submit its papers soon and the government would come to a decision on the tariff of gas to be supplied for the US$ 2.5 billion project of the Indian industrial giant in Bangladesh.


Total’s Budget for 2006
Total SA has set a capital spending budget of $13.5 billion, about $10 billion of it for upstream projects. The spending includes $1 billion for exploration, up from $800 million in 2005. The upstream budget excludes outlays for acquisitions.

The company invested $13.9 billion in 2005, a 26 percent increase from 2004. It said it expects to maintain investments at about this level through 2004, in part to meet a production growth target of 4 percent year. It also plans to upgrade its refineries in Europe and the US and expand petrochemical operations in Asia.


Russia Plans Sharp Boost in Energy Exports to Asia
Russia plans a sharp increase in exports of oil and natural gas to the Asia-Pacific region over the next 14 years to meet soaring demand there, Industry and Energy Minister Viktor Khristenko said.

"Asian countries ... will consume more and more energy" in the foreseeable future while Western countries will continue seeking to regulate or cut back on energy consumption, Khristenko said in an interview with the government daily Rossiikaya Gazeta.

"For this reason, we plan to sharply reorient the volume of oil and gas exports to the countries of the Asia-Pacific region by the year 2020," said Khristenko, adding that Russia was a "natural partner" for the countries of the region due to its unique geographical position.

A surging appetite in Asia for oil and gas will also spur demand for hydroelectric power and atomic energy, he said, and Russia was interested in taking part in the development of these sectors in Asia.

Khristenko said the development of huge oil and gas deposits on the Sakhalin shelf and near the Kamchatka peninsula, along with new petroleum resources in eastern Siberia, was being implemented with a view to long-term supply to Asian consumers.

India for Pipeline Route through NE bypassing Bangladesh
The Indian government is exploring an alternative pipeline route passing through some Northeastern states for importing gas from Myanamar, bypassing the earlier one from Bangladesh.

Minister of State for Petroleum and Natural Gas Dinsha Patel informed Lok Sabha that the draft MoU worked out by the techno commercial working committee of the three countries -- India, Myanmar and Bangladesh -- remained in the limbo as Bangladesh and India have been differing over one clause in which “Dhaka had made references to some of its bilateral issues with India, which were not related to the project”.

"An alternative pipeline route through the Northeastern territory of India, thereby bypassing Bangladesh, is being explored and discussions with Myanmar side for importing their gas are continuing," Patel said.

Meanwhile, the Joint Working Groups (JWGs) constituted by India, Pakistan and Iran for the India-Iran-Pakistan gas pipeline project have met thrice so far and have discussed various issues like gas pricing, project structure and tri-partite government-to-government framework agreement.

A tripartite meeting of the technical teams from the three countries was held in New Delhi in January this year to discuss various technical parameters of the project.

Later India and Pakistan agreed to have a tripartite meeting at the official level in Teheran in mid-March to be followed by a tripartite ministerial-level meeting in Tehran in mid-April, the minister informed the House.


Thai Cabinet Approves NGV Bus Purchase
Thailand's cabinet has given the green light for the Bangkok Mass Transit Authority (BMTA) to purchase 2,000 new natural gas buses. The purchase is in addition to the expected conversion of 108 diesel Hino buses already in the BMTA fleet.

Transport Minister Pongsak Rattapongpaisal said a procurement committee is to be set up for the purchase of the OEM buses, with a total budget of 23.5 billion Thai Baht ($US600 million). The first of the buses is expected to come into service by the end of this year.

Energy company PTT meanwhile has launched a pilot project with the Energy Policy & Planning Office (EPPO) to provide limited funding of up to 70 percent of conversion cost for heavy duty fleet operators. The fund is limited to one vehicle per fleet with a total amount of 40 million Baht ($US1 million) available.


German Alternative Fuel Taxation Plans Draw Opposition
Plans by the new German government to change the tax treatment of alternative fuels have drawn opposition, prompting industry association BGW to write to the Treasurer.

Current policy allows for the existing tax on natural gas (€13.90/MWh) to be frozen until 2020 but the incoming Treasurer has indicated that this period will be shortened to 2015.

A letter from BGW President, Michael G. Feist, outlined that such a move would undermine the original intent of the freeze and discourage further investment in infrastructure and natural gas vehicle (NGV) development. Since the tax freeze was first put in place, more than €150 million ($US180 million) has been invested in CNG infrastructure in Germany, creating approximately 650 public refueling sites.

The letter also points out that bio-methane, according to the recently published Wuppertal study, has the potential to replace 20 % of all vehicle fuels, an option that is not available for LPG which in the proposal receives an extended period of low taxation until 2015.


Vehicle Emissions Standards Adopted
The government of Bangladesh has taken a step towards controlling vehicle emissions, introducing its own set of emission standards to come into effect immediately.

The standards, Bangladesh-1 and Bangladesh-2, are based on Euro standards, and will be applied to existing vehicles, regardless of fuel type, as well as vehicles sold from this point on.

# Indonesia to Open bidding on 27 Blocks
Indonesia will open bidding on 27 oil and gas blocks in South Sumatra, Papua, Sulawesi, and East Java, according to a government official.

Iin Arifin Takhyan, the Oil and Gas Director General at the Mines and Energy Ministry, said the ministry in March will open 17 blocks via direct bidding and offer 10 blocks under regular bidding procedures.

Under the direct-offer scheme, blocks are put forward for tender by bidders, who may then be awarded the blocks if no other investor expresses interest. If there are other bids, the government will pick the most attractive bid.

In a regular tender, the government invites all companies to submit bids on designated blocks at the same time.


India Offers 55 B Blocks in 6th NELP Round
India has put up 55 oil and gas and 10 coalbed methane blocks for bidding under the sixth round of New Exploration Licensing Policy.

Bidding for the blocks -- 24 in deep water, 6 in shallow water, and 25 onshore -- opens on February 28 and closes September 15.