[ALOCHONA] Successful energy ministry

No gas for new kitchen

Embargo on new connection stays as gas scarcity mounts; bidding for on-shore exploration soon; govt to go ahead with coal development

As the gas crisis continues to remain unresolved, the government is unlikely to lift the embargo on giving domestic gas connection soon, and instead encourage new homeowners to use liquefied petroleum gas (LPG) cylinders for cooking.

"We are encouraging LPG marketing," Energy Secretary Mohammad Mesbah Uddin said at a press conference of Petrobangla yesterday. "In the present budget, we have given incentives to help LPG manufacturers reduce container price. We hope the next budget will give further incentives to cut the prices further."

According to Petrobangla's projection, gas supply shortfall now is more than 500 million cubic feet per day (mmcfd). It is set to double by the end of this year. Petrobangla's gas supplies have remained stuck at a maximum of 2,000 mmcfd from December 2009 due to lack of pipeline infrastructure, compressor station and new sources of gas production.

The government stopped giving new gas connections in Dhaka to domestic and commercial customers from July last year as the authorities are unable to meet the demands of the existing customers. Ever since, around one lakh customers have applied for new connections.

As there is no new gas connection, many have obtained connections illegally which worsened the gas supply pressure situation. Many others have resorted to buying LPG containers for their kitchens. These containers are however much costlier compared to the piped gas supplies, and the demand is much higher than supply.

At the press conference held at Petrobangla auditorium to highlight the government's achievements in the energy sector, the energy secretary noted that production of LPG has sharply gone up in the last two years. The country produced 1,1400 tonnes of LPG in fiscal 2008-9, and this year it is producing 20,000 tonnes. "We are encouraging the private sector to be more involved in this sector. Besides, the government is setting up two more LPG bottling plants in Chittagong and Mongla," he said.

Prime minister's energy adviser Towfiq-e-Elahi Chowdhury and State Minister for Power Enamul Haque also attended the press conference.

Petrobangla Chairman Hussain Mansur presented a gas production increase plan that shows a rise of the supplies by 1,785 mmcfd by mid- June 2013 and another 680 mmcfd by December 2015. This would mean the country's gas supplies would stand at around 4,500 mmcfd in 2015 as against the demand for 4,162 mmcfd.

Of this increase, most would come from three gas fields of Chevron in Bibiyana, Moulavibazar and Jalalabad. And this would be made possible by installing a 190 km pipeline at a cost of 2,074 crore by December 2013. Another 500 mmcfd of this increase would be derived from imported liquefied natural gas (LNG) containers from late next year. Again, this will be made possible by setting up a 115 km pipeline (costing Tk 1,800 crore) to transmit the imported liquid gas from a future terminal in Maheshkhali to Fouzdarhat.

Hussain said that since the Awami League-led alliance assumed power, Petrobangla has added 284 mmcfd through working over the existing gas wells. Petrobangla's affiliates were now undertaking drilling of six new exploration wells and 17 development wells (in existing fields) to increase gas supplies.

The government had emphasised strengthening the national exploration and production capacity by giving Bapex a number of incentives, finances, work programmes and brand new drilling rigs. Bapex now has 13 drilling and work over job to be completed within the next year aiming to increase gas production by up to 340 mmcd.

The Chairman mentioned that through seismic survey, Bapex has pinpointed a large structure in Sunamganj-Netrokona which promises a large find. Drilling of this structure will take place this year.The government was also set to sign a production sharing contract with US company Conoco Phillips over some deep sea blocks, and it will soon float the third round block bidding for on-shore oil and gas exploration.

Besides, Bapex is expected to enter a joint venture with Russian state company Technopromp to undertake diverse drilling programmes. "It is not going to be any deal to explore some blocks," Hussain pointed out.

Towfiq-e-Elahi said problems of the energy sector could not be solved overnight. "We have gone back to the drawing board to find solutions to the problems," he said, explaining why gas supplies were lagging behind the demand. "But no other government had thought of fuel diversification before. Our government is looking at coal as an important resource. Presently, we are planning purchasing and tapping coal from foreign coal mines to develop some large power projects in the country."

Explaining the delay over the decision on coal, he said the government was taking all the responsibilities for developing and using coal. "That's why the initiatives for coal development rest on the government. The Hydrocarbon Cell is working on how best we can tap our local resources. We have deployed the Institute of Water Modelling to prepare a detailed groundwater Model of the northern Bangladesh (where all the coal fields are situated)."

"Acquifer is the main challenge (of coal mining). There is a river underneath 10 feet or more… that we need to utilise optimally through proper understanding of this," he added.  

http://www.thedailystar.net/story.php?nid=180629

__._,_.___

[Disclaimer: ALOCHONA Management is not liable for information contained in this message. The author takes full responsibility.]
To unsubscribe/subscribe, send request to alochona-owner@egroups.com

Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe

__,_._,___