Energy & Power

Snapshots

WWEA Congratulates Grameen Shakti on Alternative Nobel Prize 2007

WWEA President Dr Anil Kane has congratulated Dipal Barua, Managing Director of Grameen Shakti from Bangladesh, for being awarded with the Alternative Nobel Prize 2007.

Dr Kane has written in a personal letter: The Jury of the Right Livelihood Award, also known as Alternative Nobel Prize, has announced that it honors your company, Grameen Shakti, for 'bringing sustainable light and power to thousands of Bangladeshi villages, promoting health, education and productivity'.

The Right Livelihood Foundations writes that your company 'has shown that solar energy applications can be scaled up massively and rapidly to provide an affordable and climate-friendly energy option for the rural poor.'

"On behalf of the World Wind Energy Association I would like to congratulate you cordially on the Right Livelihood Award 2007 and thank you very much for your contributions to the dissemination of emission-free renewable energy technologies for the benefit of those people in the unserved areas of underdeveloped countries. Your work has opened up new perspectives for rural areas that have not been supplied modern energy services so far," wrote the WWEA President.

For Salvation of Petrobangla

The Energy Ministry recently requested the government to waive the provision of tax-on-tax to salvage the Petrobangla, which is reeling under financial constraints due to mismatch between the procurement and selling prices of fuel.

The ministry requested the National Board of Revenue (NBR) to arrange a tripartite meeting of the Energy Ministry, Chevron and Petrobangla for resolving the long-standing dispute with Chevron on payment of tax-on-tax.

The NBR will have to issue a Statutory Regulatory Order (SRO) if it takes a decision to waive the tax-on-tax provision, an official source said.

According to the existing provision, the government charges such tax-on-tax on the amount of tax paid in a previous year along with current year's income.

Finance Advisor for Hike in Energy Prices, But Not Now

Finance and Planning Advisor Dr. AB Mirza Md Azizul Islam has stressed the need for increasing the prices of gas, power and fuel oil to bring discipline to the national budget and help in reducing its deficit.

"The subsidy-based financing of utility services cannot continue for long," he told the newsmen justifying the hike following a meeting with the visiting Asian Development Bank (ADB) Vice President Liqun Jin.

He, however, told the newsmen that the government is not mulling plans to enhance these prices right now.

Total Set to Launch Exploration in the Bay

The French oil giant Total is set to begin its Bangladesh operations for hydrocarbon exploration in its designated gas blocks in the Bay of Bengal from November this year.

"Total has already submitted its work plan to Petrobangla regarding its preparatory works of seismic surveys in blocks 17 and 18 in the Bay," a senior Petrobangla official said.

He said the company has planned to conduct seismic surveys in both the gas blocks with a total surface area of nearly 14,000 square kilometers.

Total, in March last, acquired the stakes of Irish company Tullow in the offshore blocks 17 and 18 and obtained government approval for extending the exploration period mentioned in the production sharing contract (PSC) by three years until May 5, 2009.

The acquisition has left Tullow with 32 percent stakes, US-based Okland 8.0 percent and Total the remaining 60 percent in the offshore blocks 17 and 18 that cover 13,724 sq km and lie south of the Sangu gas field off Cox's Bazar sea resort town.

Total has also been given the operational responsibility of these two gas blocks by Tullow.

Govt Set to Invite Tenders for 2 Large Plants

The government is set to invite international tenders for setting up two large power plants, each having 450MW capacity, in the private sector.

According to official sources, the tender for 450MW Sirajganj combined cycle plant will be floated shortly while that for 450MW Meghnaghat phase-III plant will be invited a week later.

Power Cell, the Power Ministry's reform implementing wing, will invite the tenders for both the plants. Earlier, the Power Cell invited tender for another large plant -- 450 MW Bibiyana power plant project.

Feasibility Study For 450MW Bheramara Plant

The Japan International Cooperation Agency will conduct a feasibility study for setting up a 450MW power plant at Bheramara, Power Division sources said.

The Japanese government agency has informed the division that it would send an 11-member mission to Bangladesh to discuss about the study from October 28 to November 8.

The Bheramara 450MW power plant is one of the major projects for which the Power Division has been searching for funds for years.

Chevron to Undertake 3D Survey in Moulavibazar

Chevron Bangladesh has proposed a 3D seismic survey in Moulavibazar Gas Field to increase the gas reserve. The survey will include a part of Louachhara National Forest. At present, Chevron has requested the Forest and Environment Ministry to approve the seismic survey program.

Environmental activists have already started protesting against the seismic survey program. However, Chevron has assured that this survey work will not have any impact on the forest or its environment. Also, they have invited Forest Department's experts, environmentalists and NGOs to observe the seismic survey.

The Moulavibazar Gas Field, which has an estimated gas reserve of 400 billion cubic feet, started gas production in 2004 under Unocal. Currently the gas production from Moulavibazar Gas Field is approximately 100 million cubic feet per day. The seismic survey can help prove-up much needed additional reserve.

Cairn Starts Exploration in the Bay of Bengal

The UK-based Cairn Energy has started drilling an exploration well at the Magnama structure in the Bay of Bengal to look for gas.

The company started drilling at the prospective structure, about 12 kilometers away from Magnama near Kutubdia, under a $117 million program, said sources in the Energy Division.

If Cairn, under the 72-day program, strikes gas at the Magnama structure, 61 kilometers away from Sangu gas-field's platform in the Bay, it will drill an appraisal-cum-production well to confirm the amount of gas and supply it to the national grid.

If gas is not found at Magnama, Cairn will move the drilling rig to another offshore structure at Block 16, the Hatia structure, 36 kilometers away from Sangu, to look for gas.

The company has brought five ships, drilling equipments including the rig, and a helicopter for conducting the exploration work.

Officials of the energy division are hopeful, and are eagerly waiting to hear the good news of the discovery of a gas-field in the Bay as country is likely to face gas shortage by 2011, when the current reserve of gas will be exhausted.

First Local Gas JV to Develop Begumganj Field

Three state-run gas companies are gearing up for developing the Begumganj gas field with an initial investment of around Tk 225 crore from their own coffers after getting the Finance Ministry's go-ahead.

The Energy Division in the first week of September sent the joint venture proposal of three Petrobangla subsidiaries — Bangladesh Petroleum Exploration and Production Company Ltd, Bangladesh Gas Fields Company Ltd and Sylhet Gas Fields Company Ltd.

"We have got the Finance Ministry's approval. So the joint venture has now got all the approvals necessary to drill production well at Begumganj field," said Energy Secretary AMM Nasir Uddin.

Govt to Consider Renegotiation with Asia Energy After Coal Policy Finalized

Energy Advisor Tapan Chowdhury has said that the government would decide whether to renegotiate the Phulbari coal-field agreement with Asia Energy after the coal policy is finalized.

"Asia Energy has requested renegotiation on the Phulbari agreement. It has proposed some nice things. It wants to set up a power plant, and supply the water that will extracted from the coal-mine to the adjacent villages," Tapan told reporters after a meeting with an Asian Development Bank delegation.

The Director General of ADB's South Asia Department, Kurio Senga, offered to extend all kinds of financial assistance in developing Bangladesh's coal sector, including the Phulbari coal-mine. He asked the government to take a quick decision on Asia Energy's plan to develop the Phulbari coal-mine and the Tata Group's investment proposal.

Tapan told reporters that he had assured the ADB delegation that the government would take a decision on Asia Energy's development plan after finalization of the coal policy.

Those Oppose Open Pit Mine Can' Present Alternative: Tapan

Energy Advisor Tapan Chowdhury has said those who do not want development of the country's northern region are opposing extraction of coal from Phulbari coal mine.

"I don't want to go into any debate about the mining methodology. But it's fact that those who oppose the open pit coal mine cannot present any alternative options as how coal could be utilized in a better way," he told a roundtable at the Jatiya Press Club.

The North Bengal Journalists' Forum organized the discussion with its president MA Aziz in the chair.

The Energy Advisor, who hailed from the country's northern region, said in a sad voice that a decision could have been taken much earlier if the Phulbari coal mine project had not been located in the northern region.

Prof Maniruzzaman Mia, former Vice Chancellor of Dhaka University, said there should be an immediate end to the ongoing debate on methodology of coal extraction. He suggested formation of a Northern Region Development Authority to deal with the development projects in that region.

Former BCIC Chairman Monwar Hossain Chowdhury said open pit coal mining would be a better option for the country as it ensures 95 percent extraction.

Former Army Chief Lt General (retd) Mahbubur Rahman also spoke on the occasion.

No Decision on Tata Before Clear Picture of Gas Reserve: Aziz

Finance Advisor Dr. AB Mirza Azizul Islam said the caretaker government will not be able to take any decision about the Indian business conglomerate Tata's US$ 3.0 billion investment proposal before getting a clear picture about the country's gas reserve position.

"It is not possible to take a decision about the Tata's investment proposal because we don't have any concrete data about the actual reserve of gas as the terms and conditions have a clause to provide gas supply to Tata's projects for several years," he told reporters after a meting with Asian Development Bank's (ADB) South Asian Department Director General Kunio Senga.

"The government will have to assess the actual gas reserve. There are several findings about the gas reserve but we're not sure which one is correct," the finance adviser said.

During the meeting at the Planning Commission, Asia Energy's Phulbari coalmine project and post-flood rehabilitation issue also came up for discussion.

ADB Country Director Hua Du was also present at the meeting.

Responding to a question about Phulbari coalmine, Mirza Aziz said Asia Energy's proposal will be discussed after formulation of a coal policy.

Mirza Aziz, however, admitted that delays in taking decision on investment proposals had been giving wrong signals to foreign investors.

Coal Committee Seeks 50 More Days to Finalize Policy

The advisory committee on the draft coal policy has sought another extension of 50 working days from the government to finalize the draft as it could not complete the task in the 30 days extended earlier.

The committee members are still not sure which mining method they should recommend as both open-pit and underground mining have merits and demerits.

The committee, headed by former BUET Vice Cchancellor Abdul Matin Patwari, held its seven meetings, but was yet to go through the nitty-gritty of the draft coal policy submitted to the committee by the energy division.