[🇧🇩] Energy Security of Bangladesh

[Saif]

Power sector in deep crisis: Rizvi

BNP Senior Joint Secretary General Ruhul Kabir Rizvi today said the country’s power sector has plunged into a deep crisis

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Power sector in deep crisis: Rizvi​

Ruhul Kabir Rizvi. File photo

BNP Senior Joint Secretary General Ruhul Kabir Rizvi today said the country's power sector has plunged into a deep crisis.

Talking to reporters at BNP's Nayapaltan office, Rizvi said Awami League General Secretary Obaidul Quader's recent remarks on the power situation contradict what Prime Minister Sheikh Hasina has said on the issue.​

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The BNP leader said Quader claimed that hundred percent of the country's people are getting electricity supply, but the PM a few days ago stated that load-shedding on a small scale should remain in the country.

He said people of the country are suffering from load-shedding from morning to evening even though the temperature remains at a tolerable level.​

 

[Saif]

Price of 12kg LPG cylinder hiked by Tk 8

The Bangladesh Energy Regulatory Commission (BERC) today raised the price of liquefied petroleum gas (LPG) by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86

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Price of 12kg LPG cylinder hiked by Tk 8​

File photo: Collected

The Bangladesh Energy Regulatory Commission (BERC) today raised the price of liquefied petroleum gas (LPG) by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86.

This price change will be effective from 6:00pm today, indicating a slight increase in household and commercial expenses.

BERC at a press briefing today said that the price for a standard 12kg LPG cylinder will now be Tk 1,482, up from the previous Tk 1,474. This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5kg to 45kg, addressing the need for a proportional price revision across different consumer segments.

Furthermore, the price for "auto gas", the LPG variant used in motor vehicles, has also seen a revision, now priced at Tk 68.05 per litre, a slight increase from Tk 67.68.

Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company's minimal market share, which is less than five percent.

The decision to adjust LPG prices comes in the wake of rising costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East.​

 

[Saif]

Congestion on the Dhaka-Ctg highway as locals protest gas supply cut

Heavy traffic jam was reported on the Dhaka-Chattogram highway as residents of Munshiganj’s Gazaria protested the suspension of gas supply in the area by blocking it

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Congestion on the Dhaka-Ctg highway as locals protest gas supply cut​

Photo: Collected

Heavy traffic jam was reported on the Dhaka-Chattogram highway as residents of Munshiganj's Gazaria protested the suspension of gas supply in the area by blocking it.

According to locals, they occupied the busy road for 2 hours starting around noon creating heavy traffic jam on the highway. Around 2:00pm, after receiving assurance from administration, they moved from the highway easing the traffic congestion.

However, later, around 4:00pm, they again took position on the highway. The responsible officials are trying to convince them to move from the highway, reports our local correspondent.

According to locals, the Titas Gas Authority stopped gas supply to most areas of Gazaria Upazila from February 25th. They said the decision came without any notice or prior announcement.

They said the protest started when, around 11:30am, the Titas Gas Authority came to disconnect the "illegal transmission lines" in the Dori Bausia area of Bausia Union.

Gazaria Upazila Nirbahi Officer Kohinur Akhtar said, "Traffic became normal when we persuaded them and removed them from the road."

However, as of 5:00pm, thousands of men and women from several nearby villages again gathered on the highway creating heavy traffic jams.

Gazaria Bhaberchar Highway Police Officer-in-Charge, Md Humayun Kabir said, "Most of the agitators are women. They have been suffering due to a lack of gas. They want a quick solution. They were removed from the highway. But they are back again. It is causing traffic jam on the highway. We're trying to convince them to move away from the highway."​

 

[Saif]

Bangladesh to invite bids for offshore oil and gas exploration

Bngladesh will invite international bidding for oil and gas exploration in 24 blocks in the Bay of Bengal on March 10 in an effort to boost domestic energy production, the chairman of state-owned Petrobangla told Reuters on Tuesday. Bangladesh has been battling with energy shortages, with its gas

thefinancialexpress.com.bd

Bangladesh to invite bids for offshore oil and gas exploration​

REUTERS

Published :​

Mar 06, 2024 00:01

Updated :​

Mar 06, 2024 00:01

Representational image

Bngladesh will invite international bidding for oil and gas exploration in 24 blocks in the Bay of Bengal on March 10 in an effort to boost domestic energy production, the chairman of state-owned Petrobangla told Reuters on Tuesday.

Bangladesh has been battling with energy shortages, with its gas reserves fast depleting and a spike in fuel prices following the Ukraine war.

"The deadline for submission of offers for the 24 offshore blocks will be the first week of September and after evaluations, we are hoping to finalise the deals by the end of this year," said Zanendra Nath Sarker.

"We're making plans to reduce supply shortages to keep gas-fired power plants and industries running," he said in an interview with Reuters in his office.

Petrobangla also plans to import 48 liquefied natural gas (LNG) cargoes from the spot market this year, upon approval from the government, up from 23 cargoes last year, other than cargoes from long-term deals, Sarker said.

Five cargoes from spot market will be imported in April while seven cargoes had been imported over the last two months, he added.

"We have also taken initiatives to drill 100 new gas wells in the country between 2025 and 2028 to boost local production," he said.

The move comes at a time when the South Asian country's gas reserves are set to completely deplete by 2033 if no new major discoveries are found.

Bangladesh has struggled to pay for imported oil and gas because of dwindling local reserves since the Russian invasion of Ukraine, forcing the country to turn last year to the International Monetary Fund for a $4.7 billion bailout.

"The dollar crisis in recent times is a global problem. But the government is giving priority to the energy and power sectors. So it will not be a barrier," Sarker said.

Bangladesh's offshore remains largely unexplored despite the settlement of a dispute in favour of Dhaka with neighbouring Myanmar and India over the maritime boundary.​

Two shallow water blocks are under contract for exploration with a joint venture of ONGC Overseas Limited and Oil India Limited where drilling has recently begun, officials said.

 

[Saif]

Bangladesh's Energy Backtrack

Through advanced coal-intensive technologies, the government is trying to keep coal alive and further expand the domestic use of imported LNG.

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Bangladesh's Energy Backtrack​

Decoding the Integrated Energy and Power Master Plan 2023

The freshly approved IEPMP seems to chalk out the coal transition from imported to domestic coal rather than transitioning from fossil fuel to renewable or clean energy. FILE PHOTO: RAJIB RAIHAN

The Ministry of Power, Energy, and Mineral Resources (MPEMR) published the Integrated Energy and Power Master Plan (IEPMP) 2023 on November 27 last year. The IEPMP was passed after revising the draft seven times.

The final draft has been widely disseminated among stakeholders. But despite multiple revisions, the IEPMP fails to demonstrate a coherent plan to attain renewable energy transition while ensuring energy security. Instead, an overwhelming presence of different advanced technologies (such as nuclear, carbon capture and storage units, hydrogen, and ammonia) have been observed. The majority of these technologies commit to clean coal and are yet to be tested for their effectiveness in reducing carbon emissions. Such a shift in narratives creates confusion among the masses regarding the government's renewable energy stance. This type of jargonal change hints at the government's willingness to keep fossil fuel use, especially of coal, alive.
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Renewable energy targets in IEPMP​

The progress in renewable energy deployment in Bangladesh has been sluggish for quite some time. According to SREDA, the renewable energy generated power in Bangladesh is 1,202 MW, and the total share stands at 4.1 percent. The lion's share of current renewable energy is from solar (both off-grid and on-grid), as 968 MW is generated from solar energy in Bangladesh. However, aligning with the prime minister's announcement, the newly launched IEPMP sets the clean energy target at 40 percent of the total installed generation capacity (23,500 MW) by 2041. Unfortunately, the new IEPMP faultily revised renewable energy to clean energy, where targets are set as 18 percent by 2030 and 40 percent by 2041. The share of renewable energy within the clean energy mentioned in the IEPMP is not even half. By 2030, of the 18 percent clean energy, 5.7 percent (1,726 MW) will be renewable, and by 2041 of the 40 percent clean energy, only 8.8 percent (5,157 MW) will be from renewable energy sources. Now, the billion-dollar question is: what makes up the remaining 12.3 percent by 2030 and 31 percent by 2041?
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Emphasis on technology for clean energy goals​

The IEPMP mentions the use of advanced technology and fuel cells to achieve clean energy targets. It includes coal-fired power plants with Carbon Capture and Storage (CCS) technology, nuclear, coal co-fired with ammonia, and hydrogen co-fired with gas (LNG) as clean energy sources. The plan explicitly mentions that to achieve the goal of 40 percent of electricity generated from clean energy sources, it will be necessary to introduce hydrogen (H2) at six percent and ammonia (NH3) at two percent.

The rationale of the MPEMR behind introducing these technologies is that Bangladesh will not be able to achieve the clean energy goals via traditional renewable energy sources. This itself seems to contradict the estimation of renewable energy potential in Bangladesh presented in the final IEPMP. According to the renewable energy generation deployment plan under the Advanced Technology Scenario (ATS), 9,500 MW can be generated from solar and 7,575 MW can be generated from wind. Biomass can generate 165 MW, with 230 MW of hydropower. Hence, a total of 17,470 MW can be generated from traditional renewable energy sources by 2041, which is almost 30 percent of the total power demand.
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Timeline of hydrogen and ammonia introduction​

The freshly approved IEPMP lays out the plan to introduce ammonia co-firing as early as 2035 and coal co-firing as early as 2037. Gas-fired power plants with 20 percent hydrogen co-firing will be starting in 2037. Later, it will be upgraded to 50 percent in 2045 and 100 percent hydrogen firing starting in 2040. The plan will introduce blue hydrogen first, but it has not yet confirmed whether green hydrogen will be introduced or not. In the case of ammonia, coal-fired power plants with 20 percent NH3 co-firing will be starting in 2035 and will be upgraded to 50 percent in 2040. After 2037, the introduction of CCS into ammonia co-firing should also be considered to further reduce CO2 emissions.
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Environmental and financial feasibility of hydrogen and ammonia​

Hydrogen and ammonia co-firing with gas and coal are not 100 percent clean and do emit carbon. Fuel cells such as hydrogen and ammonia are only environment-friendly and emit zero carbon if they are green; that is, constructed from renewable sources. Hence, only if green hydrogen and ammonia are used for power generation will Bangladesh be able to keep up with the energy transition commitment. Even if the MPEMR ends up using green hydrogen and ammonia for electricity generation, it will not be financially viable. Several pieces of literature have already demonstrated that the levelised cost of electricity (LCOE) from these sources is much higher than in traditional renewable energy sources. The IEPMP itself demonstrates that the LCOE from ammonia is USC 17/kWh and USC 14/kWh for hydrogen. In contrast, the LCOE for solar will be USC 2.7/kWh in 2030 and USC 2.1/kWh in 2050. The required investment amount of the generation capacity installations till 2050 in the IEPMP is estimated at $157 billion. The total investment for power generation from clean energy is $64.4 billion, of which it's $29.7 billion for wind (46 percent), $20.1 billion for nuclear (31 percent), $7.2 billion for solar (12 percent), and $6.9 billion for hydrogen and ammonia (11 percent).
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Lack of renewable energy planning​

CCS, ammonia, and hydrogen technologies are costly and will require hefty investment to be introduced in Bangladesh. There is no detailed plan of the necessary financial estimates for investment and maintenance of renewable or clean technologies that could be used to attain the goal of low carbon emissions. Additionally, there is no accurate policy framework for renewable energy subsidies yet. Several government decisions on renewable energy, such as the decision to phase out diesel-based power plants, as well as medium-term plans for installing solar PVs in agriculture, irrigation, and primary schools are not mentioned or reflected in the IEPMP. No feasibility study is proposed for renewable energy-related implementation in various spheres of the economy.

On the other hand, in the section that highlights power policies, renewable or clean energy policies are completely absent. Instead, a plan for the hydrogen/ammonia fuel supply system is highly emphasised. The government is planning a demonstration test essential for evaluation in Bangladesh for ammonia co-firing and studies on plant locations, transmission, and fuel supply for hydrogen. The schedule for CCS implementation for gas-fired plants and the need for preliminary studies on suitable sites and CCS technologies are already in the works.
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De facto coal transition​

Through advanced coal-intensive technologies, the government is trying to keep coal alive and further expand the domestic use of imported LNG. The new IEPMP unreasonably assumes that domestic coal production will continue to increase by 2050. This is mainly for ammonia co-fired with coal and CCS technologies to clean coal. Overall, the freshly approved IEPMP seems to chalk out the coal transition from imported to domestic coal rather than transitioning from fossil fuel to renewable or clean energy. This indicates that the government is willing to start walking in the opposite direction of renewable energy targets.

Dr Khondaker Golam Moazzem is research director at Centre for Policy Dialogue (CPD).

Helen Mashiyat Preoty is research associate at CPD.​

 

[Saif]

Govt reduces fuel price; diesel now Tk 108.25, Octane Tk 126

The government has slightly reduced the fuel oil price today following the automated price formula

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Govt reduces fuel price; diesel now Tk 108.25, Octane Tk 126​

Representational image. File photo

The government has slightly reduced the fuel oil price today following the automated price formula.

From 12:00am, the diesel and kerosene price will be Tk 108.25 per litre, while the petrol price will be Tk 122 and Octane price will be Tk 126.

The ministry of Power, Energy and Mineral Resources today issued a gazette notification in this regard.

Comparing the previous prices, diesel and kerosene price has been decreased by Tk 0.75, Octane dropped by Tk 4 and petrol by Tk 3.

A ministry press release said that after the latest adjustment of fuel oil price in August 2022, the premium cost of fuel import, transport cost, insurance and bank interest increased a lot due to the impact of coronavirus pandemic, Russia-Ukraine war, and tension in Middle East.

It said, from now on the fuel price will be adjusted every month following the new guideline.

The government introduced the automated fuel pricing mechanism on February 29 as per one of the conditions for the $4.7 billion loan from the International Monetary Fund.​

 

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https://www.thedailystar.net/environment/natural-resources/energy/news/petrobangla-invites-offshore-bidding-oil-gas-exploration-3563466

Petrobangla invites offshore bidding for oil, gas exploration​

Photo: Collected

Petrobangla, the oil, gas and mineral corporation, has floated the offshore bidding tender, inviting international oil and gas companies to explore the Bangladesh maritime area in the Bay of Bengal.

The tender, named "Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024", was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad today, giving six months' time until September 9, 2024 for submission of the bids.

As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round.

The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11, and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.

The bidder, singly or in association with other companies, can bid for one or more blocks.

Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.

The features of the proposed contract include full repatriation of profit, no signature bonus or royalty, uncapped attractive gas price linked with international marker, oil price to be determined on the basis of the fair market value prevailing in South and Southeast Asia.

It entails no duty for equipment and machinery imported for petroleum operations while the contractor's corporate income tax liability will be borne by Petrobangla, and bank guarantee for performance of the minimum exploration programme.

There will be provision for assignment of interest and share-transfer and 100 percent cost recovery with a yearly cap of 75 percent.

The contractor must have a mandatory work programme consisting of 2D seismic survey and mandatory purchase of available 2D multi-client seismic data against bidded blocks to get relief from mandatory work obligations proportionately.

They will have minimum work obligation in each of the exploration periods while biddable work programme commitment over and above the mandatory programme.

Companies interested in bidding and purchasing of Promotional and Data Sales Packages may contact the Director, Production Sharing Contract, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Petrocentre, 3 Karan Bazar, Dhaka-1215, said the bidding tender.​

 

[Saif]

Govt urges foreign investors to explore maritime area

Bangladesh on Monday urged foreign investors to explore the country’s maritime area through the bidding opened the day before, offering what it said was one...

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Govt urges foreign investors to explore maritime area
Staff Correspondent | Published: 00:21, Mar 12,2024

Bangladesh on Monday urged foreign investors to explore the country’s maritime area through the bidding opened the day before, offering what it said was one of the most lucrative deals in the world.

The bidding, which will close on September 9, has already generated widespread interest among global oil companies, including prominent ones, the power and energy ministry high-ups revealed in a press conference on Monday, without disclosing their names.

Energy experts agreed with the government about the Production Sharing Contract of 2023, on which the bidding is modelled, being too profitable for private investors but differed from the view that suggested it would benefit Bangladesh with all its concessions and tax holidays.

‘It offers one of the most lucrative prices in the world,’ energy secretary Nurul Alam said at the press conference hosted by the national gas and oil company Petrobangla.

‘We don’t want to reveal names but would like to share that some companies have already reached out to us,’ he said.

Petrobangla chairman Zanendra Nath Sarker opened the press conference, announcing that the PSC spared investors payments such as royalty payments, signature bonuses, and any kinds of import duties or taxes.

The investors will need to pay a minimum bank guarantee and can transfer shares, he said, adding that investors can bid for one or more blocks alone or with other companies.

For ensuring a faster return on investment, the PSC offers 75 per cent cost recovery, he said.

A total of 24 offshore blocks are open for bidding, including nine shallow blocks. The shallow blocks are 3m to 200m deep while the deep sea blocks are 201m to 2000m deep.

The price will be linked to oil, meaning that the earlier provision of any cap on the price is no longer there.

Petrobangla officials said that this was a really attractive package, citing the example of Myanmar and Thailand, where companies needed to pay 10 per cent and 20 per cent royalty, respectively.

‘We invite the biggest companies in the world who have experience in maritime exploration to participate in the bidding,’ said power and energy state minister Nasrul Hamid.

Nasrul claimed that the bidding took a while to occur due to disruptions like the Covid-19 pandemic since the last bidding in 2016.

Nasrul thanked stakeholders for their hard work to finally make the bidding happen, including UK-based Wood Mackenzie, a multinational research and consultancy group, whose recommendations shaped the 2023 model PSC.

Bangladesh has so far held seven biddings since 1974 for gas and oil exploration, with the highest number of foreign companies entering production sharing contracts in 1974.

Bangladesh has drilled 97 wells over the past century, finding gas in 29 wells. Bangladesh’s current production capacity is about 2100mmcfd against a demand of about 5000mmcfd.

After a prolonged period of inactivity over exploration, the government passed the 2023 PSC in the election year, months before it assumed power for the fourth straight term.

Despite Bangladesh reportedly sitting on a huge gas reserve being the world’s largest delta, the government spent more money on gas imports rather than investing in the exploration or building the capacity of Bangladesh Petroleum Exploration and Production Company Limited.

‘The bidding is the culmination of a long journey taken by a syndicate of powerful people at home and abroad to get complete control over the natural resource,’ said Anu Muhammad, former member secretary of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port.

Considering tax holidays and other concessions, on top of the new pricing formula linked to the Brent oil price, the actual price of gas would be higher than the international market rate, he said.

This too lucrative contract, he said, might lead to excessive exploitation of natural resources, eventually leading to a situation where it would have to be exported.

American oil giant ExxonMobil has expressed its interest in exploration in Bangladesh in the election year. Other US multinationals, such as Chevron and ConocoPhillips, are also potential contenders in the bidding.

The power and energy state minister and the power, energy and mineral resources affairs adviser to the prime minister, Tawfiq-e-Elahi Chowdhury, did not answer the question asked about the geopolitical risks involved in inviting foreign companies to the Bay of Bengal.

An enormous gas exploration potential opened up between 2012 and 2014 after Bangladesh won over 20,000sq km in the Bay of Bengal following the settlement of maritime disputes with India and Myanmar.

Immediately after losing its maritime dispute with Bangladesh, Myanmar awarded 20 offshore blocks, mostly in the Rakhine basin off the Arakan coast, south of Teknaf, to international oil companies by 2014.

Of 26 open offshore blocks, Bangladesh has PSC for two shallow sea blocks — blocks SS-04 and SS-09, which ONGC Videsh Ltd and Oil India Ltd are jointly exploring.

The South Korean Posco International exited from block DS-12 in 2020 seeking a gas price hike.

Before exiting, Posco carried out a two-dimensional, or 2D, seismic survey over about 3,580-kilometres area, double the area it committed for the survey, detecting half a dozen potential gas spots.

ConocoPhillips got out of the PSC signed under the 2008 bidding after completing a survey of 5,750-km area in the deep sea blocks DS-10 and DS-11.

US oil giant Chevron has three onshore blocks — 12, 13 and 14 — while Singapore’s KrisEnergy has been producing onshore block 9.​

 

[Saif]

Japan chooses Bangladesh, others to get rid of surplus LNG: report

Japan’s largest liquefied natural gas buyers have surplus problems, prompting them to expand business to South and Southeast Asian countries, including Bangladesh, according to a...

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Japan chooses Bangladesh, others to get rid of surplus LNG: report
Staff Correspondent | Published: 23:52, Mar 12,2024

Japan’s largest liquefied natural gas buyers have surplus problems, prompting them to expand business to South and Southeast Asian countries, including Bangladesh, according to a report released by the United States-based Institute for Energy Economics and Financial Analysis.

The report also revealed that demand for LNG in Japan was falling for several reasons, but Japan’s LNG buyers still increased their purchases aimed at becoming a major LNG player.


The Japan International Cooperation Agency formulated Bangladesh’s latest Integrated Energy and Power Master Plan, describing gas as the friendliest fossil fuel and one of the most viable options to pursue to achieve an ambitious power generation goal.

Energy experts in Bangladesh have already harshly criticized the Bangladeshi master plan, describing it as an extension of Japan’s business plan, partly because of its overwhelming reliance on gas and partly because it included technologies—hydrogen fuel and ammonia co-firing—that Japan was developing.

‘As domestic demand falls faster than LNG purchase commitments, Japanese utilities will face an important choice,’ said Christopher Doleman, an IEEFA LNG specialist and a co-author of the report.

‘Either they can resell flexible cargoes abroad or exercise contractual volume flexibilities and cancellation rights, which may incur additional costs,’ he said.

The report finds that Japan’s largest utilities—including JERA, Tokyo Gas, Osaka Gas, and Kansai Electric—are likely to face an over-contracted position of roughly 11 million tonnes per annum (mtpa) for the remainder of the decade.

Japan’s Ministry of Economy, Trade, and Industry has set a target for companies to transact 100 mtpa of LNG by 2030. This is well above the 79 mtpa that buyers have currently contracted, but in line with recent transaction volumes, according to the report released on Monday.

Meanwhile, Japan’s Asia Zero Emission Community initiative aims to replicate its energy mix across Asia.

These policies, as well as the corporate strategies of major utilities, suggest that Japanese companies will continue to play a major role in LNG transactions, despite declining domestic demand.

JERA executives have expressed a desire to turn the company into a major global LNG portfolio player, while Tokyo Gas has said that the ultimate target is to form a Southeast Asian LNG value chain.

Based on figures from the Japan Oil, Gas, and Metals National Corporation (JOGMEC), LNG sales by Japanese companies to third countries surged from 14.97 million tonnes (mt) in FY2018 to over 38 mt in FY2021. Although domestic sales have declined, the total volume of LNG transacted by Japanese companies increased over the same timeframe.

‘Today, the volume of LNG sold abroad is nearly 50 per cent of the volume consumed domestically,’ read a line from the IEEFA report.

The IEEFA report listed reasons that led to the decline in LNG demand in Japan: resumption of nuclear power plants, increased renewable capacity, and no rise in power consumption because of demographic reasons.

Japan’s four largest utilities account for almost three-quarters of Japan’s historical LNG contracting activity.

JERA, including the contracts inherited from its parent companies, Tokyo Electric and Chubu Electric, is responsible for 40 per cent.


JERA has invested in LNG-based power plants coming online this year in Bangladesh.


JERA acquired a 19 per cent interest in Summit Power International Limited, which is an LNG importer in Bangladesh, in 2019.

The report said that JERA in 2023 revealed plans to develop LNG regasification, storage, and supply with Summit Power.

Kansai Electric, on the other hand, provides training for the operation and maintenance of thermal power plants jointly with JICA, the report said.

Japan’s Ministry of Economy, Trade, and Industry established in 2020 the New International Resource Strategy for Enhancing LNG Security focused on increasing LNG business in South and Southeast Asia.

Japan took its strategy to expand its LNG business overseas after it first over-contracted LNG in 2017, the report said.

‘That year, the government announced a $10 billion funding package to develop Asia’s LNG market, which was partly designed to position Japanese companies to capitalize on LNG trading opportunities.

In September 2019, the government of Japan announced another $10 billion funding package for the development of LNG infrastructure globally,’ the report said.

Overall, Japan’s LNG demand has fallen by 22 million tonnes since 2014, the report said.

Besides Bangladesh, Japan’s LNG buyers have investments in Indonesia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam in a wide range of areas, from power generation to gas supply to building the necessary infrastructure.​

 

[Saif]

The case for renewable energy & Bangladesh

The case for renewable energy is twofold: (1) to reduce chronic dependence on fossil fuels thereby cut down on import requirements; and (2) to diminish carbon emission that is contributing to climate change and threatening lives and livelihoods of millions of people around the world besides destroy

thefinancialexpress.com.bd

The case for renewable energy & Bangladesh​

HASNAT ABDUL HYE

Published :​

Feb 19, 2024 21:28

Updated :​

Feb 20, 2024 21:21

Technicians inspect floating solar panels installed on reservoirs in Chapainawabganj—Xinhua Photo

The case for renewable energy is twofold: (1) to reduce chronic dependence on fossil fuels thereby cut down on import requirements; and (2) to diminish carbon emission that is contributing to climate change and threatening lives and livelihoods of millions of people around the world besides destroying ecology that supports planetary stability.


As countries have developed industrially, their need for fossil fuels have increased exponentially. This has resulted in a supply- demand mismatch, pushing up the prices for fossil fuels. For developing countries this is placing a heavy burden on their budgetary resource. Increasing demand and use, on the other hand, is depleting the reserves of fossil fuels in the world. The other, the more serious, problem is the growing incidence of carbon emission that has morphed into an existential threat for mankind and all living organisms. Beginning from the Earth Summit in Rio in 1992 that, among others, set up United Nations Convention Framework on Climate Change, there has been an annual summit on climate change to monitor and take policy decisions on reducing the use of fossil fuels that contribute to greenhouse gases, including carbon emissions. Both for abiding by with the global decision to cut down in carbon emission and to reduce dependence on non-renewable energy, Bangladesh has adopted renewable energy promotion as an important policy objective.

In the Master Plan on Energy in 2020 it was envisaged that 10 per cent of total power generation will come from renewable sources. But though power generation capacity from fossil fuels has been achieved as per the goal, the same from renewable sources have fallen short of the target. Till today power generation from renewable sources has not reached 4 per cent of the total. The government has set the goal of generating 60 thousand mega watts of power by 2041 out of which 40 per cent is expected to come from renewable sources. At present the total power generation of the country is 28.134 mega watts based on captive and renewable sources. As pointed out earlier, 10 per cent of total generation was expected from renewable sources which amount to little more than 2800 mega watts. But according to the Sustainable and Renewable Energy Development Authority (SREDA) the actual contribution from this source was only 1194 mega watts which amounts to little more than 4 per cent.

According to SREDA, as of August 2023 the total capacity of power generation from renewable source stood at 1194 mega watts. Out of this, solar energy contributed 960.8 mega watts, hydro power 230 megawatts, wind power 2.9 mega watts, bio gas 0.69. mega watts and bio mass 0.4 mega watts. It has been pointed out by energy analysts that power generation from renewable sources has not picked up due to lack of adequate publicity, absence of official guidelines and meagre incentives given to private sector. Energy experts are of the opinion that about 3000 mega watts power can be generated from solar and wind energy in the country, thereby reducing the pressure on fossil fuel-based power generation.

From the experience gained so far and considering the feasibility it has been concluded that a good part of the potential for increasing power generation from solar and wind power remains untapped. The private sector is interested to invest in this sector in a big way but the tax structure acts as a disincentive. If the import of solar panel is allowed tax free or at a nominal rate this will encourage many entrepreneurs to invest. This can either be achieved through public private partnership (PPP) or through the private sector.

The technology of solar and wind power is simple enough to be used by Bangladeshi technicians and workers. If they are sent to China or Chinese experts are invited to Bangladesh technology transfer can take place within a short period. On the demand side, customers can easily be made interested in the use of solar power because of the low cost per unit of power that saves Tk 4 per kilowatt. A particular target for absorption of solar power is the housing sector where the design of the building can build in installation of solar panels on roofs and solid walls. For big factories it can be made obligatory to install solar panels to produce part of the electricity they need. It is encouraging that the business model of roof- top solar power has proved both feasible and viable. Operators, investors and commercial banks have all shown Interest in the solar rooftop business model.

Compared to solar energy, wind and hydropower is still at a fledgling stage. Only coastal areas of the country appear to be fertile grounds for exploitation of the potentials. But though limited in scope, these sources have one advantage over solar energy and that is their all weather availability. Since in renewable energy, a mix is being considered even sectors with low potential should be used.

Most important is acquisition of technical know-how at grassroots level so that repair and maintenance facilities are available at local level. This may be a potent attraction for creating demand. It has been found by solar energy providers like IDCOL that in agriculture production farmers are showing interest in using solar power instead of diesel to run their irrigation pumps because of the decentralised service system. Where garment factories are found in a cluster and it is feasible to service installed solar panels by the operator , factory owners are coming forward to use solar energy without much persuasion.

The most important source of renewable energy that is also environment-friendly is, of course, nuclear power. Leaving aside the risk of melt-down, power generated in nuclear plan is cheaper than that produced by fossil fuels. The Rooppur Power Plant, when ready for operation will make significant contribution to power generation in Bangladesh. If the second nuclear plant on the drawing board materialises, the energy sector in Bangladesh will be in a position to export power from the national grid.

Hung up on the use of fossil fuel for power generation for long, it is understandable that gaining momentum takes time. But it is gratifying that a beginning has been made and Bangladesh is poised to wean itself away from total dependence on fossil fuel-based power generation.​

 

[Deleted due to Error (Muji Iqbal)]

I wish the best for Bangladesh.

Perhaps hydroelectric, tidal, and wind energy will be good for Bangladesh.

 

[Saif]

I wish the best for Bangladesh.

Perhaps hydroelectric, tidal, and wind energy will be good for Bangladesh.

Hydroelectricity is not an option for Bangladesh because most of our land is used to grow rice and other agricultural commodities. However, Bangladesh is working on using wind and solar energy to meet her energy demand.

 

[Deleted due to Error (Muji Iqbal)]

Hydroelectricity is not an option for Bangladesh because most of our land is used to grow rice and other agricultural commodities. However, Bangladesh is working on using wind and solar energy to meet her energy demand.

How about Tidal energy? Bangladesh has a large shoreline with the Bengal Sea.

 

[Saif]

Gas crisis till April at least

Gas scarcity is likely to continue till April despite the government’s repeated assurance of scaling up gas supply during Ramadan and the irrigation season as one of the two Floating Storage and Regasification Units (FSRU) will take longer to complete maintenance works.

www.thedailystar.net

Gas crisis till April at least​

Summit’s floating storage to take another month to finish maintenance work

Photo: Summit Group

Gas scarcity is likely to continue till April despite the government's repeated assurance of scaling up gas supply during Ramadan and the irrigation season as one of the two Floating Storage and Regasification Units (FSRU) will take longer to complete maintenance works.

The Summit-operated FSRU, which re-gasifies the imported liquefied natural gas and supplies to the national grid, was supposed to resume operation after maintenance in the first week of March.​

​

But Nasrul Hamid, the state minister for power, energy and mineral resources, yesterday said that FSRU is unlikely to resume operation before March 30.

"We import 30 percent of our gas supply. Due to the lack of the FSRU, we have a shortfall of 10 percent of gas. Besides, our local gas production is also in decline," he told journalists after a meeting with the government officials of different companies related to the gas and fuel supply.

In a Facebook post yesterday, Ayesha Aziz Khan, the managing director and chief executive officer of Summit Power International, wrote: "We are pleased to see the dry-docking procedure of Summit's first FSRU at the Seatrium Benoi Yard, Singapore."

This FSRU, with a storage capacity of 136,000 cubic metres and a regasification capacity of 500 mmcfd, is being overhauled and restored to a brand new condition.

It will reach Moheshkhali by April, the post added.

Two FSRUs had been supplying around 850 million cubic feet of gas a day (Mmmcfd) until October last year when the Excelerate-operated FSRU went into maintenance and the supply dropped to 500mmcfd.

In mid-January, both the FSRUs were disconnected from the grid due to technical glitches. Consumers in Dhaka, Chattogram, Narayanganj and Gazipur faced a week of gas supply disruptions and many industries did not get gas. Households also faced acute crises over the week.

Later on January 20, the Excelerate FSRU resumed operation but the gas supply didn't increase proportionately as the Summit-run FSRU started going into maintenance.

Yesterday, the total gas supply was around 2,600 mmcfd against the demand of over 3,800mmcfd. Three out of six fertiliser factories were shut due to gas shortages.

City dwellers in different areas are unable to cook Sehri at midnight and have been experiencing gas shortages before Iftar too.

"Gas crisis has become a part of life," said Sadekon Nahar Dilruba, a resident of Khilgaon.

During the daytime, gas pressure is very low, she said, adding that the pressure increased after 1:00am on the first and second days of Ramadan and again dried out before 4:00am.

"I struggle a lot to cook Sehri and Iftar, but I have to pay a gas bill of Tk 1,080 for two stoves every month," she added.

Asked about the solution for people like Sadekon, Hamid said: "There is an option for household consumers and I will request those who have a gas shortage in their areas to use LPG (bottled liquefied petroleum gas) as an alternate solution."

At the meeting, two decisions were taken to keep the gas and power supply situation at a bearable level: the CNG refuelling stations will be kept closed for six hours (4:00pm to 10pm) a day and the schedule of irrigation pumps will be from 12am to 6:00am every day.

However, centring on Eid-ul-Fitr, from April 7 to 18, the gas stations will remain open 24 hours.

About the electricity supply, Hamid said if the fuel supply stays uninterrupted, the electricity supply will be uninterrupted during Ramadan.

"The power cuts will only happen for a short time," he said.

Yesterday, the load-shedding was over 500 megawatts across the country at around 3.00pm. The production was around 11,400MW against the demand of 11,900MW.

The power sector was getting 880mmcfd of gas against the demand of over 1,900mmcfd.​

 

[Saif]

Single-Point Mooring pumps 40,000 tonnes of crude oil from Maheshkhali to Eastern Refinery

With the government's sincere efforts, Single-Point Mooring (SPM), a deep-sea floating oil pipe, successfully pumped 40,000 metric tonnes of crude oil from Maheshkhali Pumping Station to Eastern Refinery Limited (ERL) safely and smoothly on Friday. According to a release issued by Deputy Informa

thefinancialexpress.com.bd

Single-Point Mooring pumps 40,000 tonnes of crude oil from Maheshkhali to Eastern Refinery
BSS
Published :
Mar 15, 2024 21:40
Updated :
Mar 15, 2024 21:47

With the government's sincere efforts, Single-Point Mooring (SPM), a deep-sea floating oil pipe, successfully pumped 40,000 metric tonnes of crude oil from Maheshkhali Pumping Station to Eastern Refinery Limited (ERL) safely and smoothly on Friday.

According to a release issued by Deputy Information Officer of Power, Energy, and Mineral Resources Ministry Mir Aslam Uddin, the long-cherished SPM project was commissioned through the transportation of crude oil from Moheshkhali to ERL.

“Bangladesh Petroleum Corporation (BPC) initiated the SPM project to carry fuel through pipelines from mother vessels quickly, which would also save Tk 8.0 billion per annum,” State Minister for Power Energy and Mineral Resources Nasrul Hamid told reporters earlier.

He said once the project was implemented, it would reduce oil pilferage and time for fuel oil supply across the country.

“The Awami League government, led by Prime Minister Sheikh Hasina, has instructed the SPM to unload imported crude oil from deep seas in a more efficient and time-saving manner. The SPM will also ensure energy security in the country,” the state minister added.​

 

[Saif]

More power plants than needed

The government is continuing to ramp up the power generation capacity even though the electricity demand did not increase as per projection, putting an additional price burden on consumers, said energy experts.

www.thedailystar.net

More power plants than needed​

Consumers ultimately bear the brunt for excess capacity, experts say

The government is continuing to ramp up the power generation capacity even though the electricity demand did not increase as per projection, putting an additional price burden on consumers, said energy experts.

In the Power System Master Plan (PSMP) 2016, the electricity demand in 2024 was forecasted to be 20,129 megawatts. In reality, the highest projected demand for electricity this year is 17,800MW.​

​

The power generation capacity at present is 26,844 megawatts.

It means there is an overcapacity of over 9,000 MW excluding the captive power generation capacity (electricity generated at the industries by themselves) and off-grid renewable energy that accounted for another 3,223 MW, according to data from the Bangladesh Power Development Board.

Due to the increased generation capacity, the government needs to spend more than the necessary amount for generation, said Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue.

"To meet the higher generation cost, the government needs to adjust the electricity prices repeatedly -- the consumers are not at fault here," he said.

The higher generation cost is due to capacity payments, a fee that must be paid to the power producers for every idle hour.

Globally, the target for reserve margin, which is the amount of unused available capability of an electric power system (at peak load for a utility system) as a percentage of total capability -- is 20 percent, according to experts.

The PSMP 2016 says that the reserve margin would be brought down to 20 percent by 2025 when the peak demand would be 21,903 MW.

In reality, the reserve margin is more than 35 percent and will increase more in the upcoming days.

"It is true that to make the power supply smooth and healthy certain percentage of reserve margin is essential, but unplanned and aggressive increase in generation could make reserve margin more than optimum limit resulted into extra pressure in the economy of the country," said the PSMP 2016, which was revised in 2018.

Subsequently, it called for a thorough study to ascertain which level of reserve margin is actually required for continuing uninterruptible and reliable power supply to the customers with minimum pressure on the economy.

However, according to the Integrated Energy and Power Master Plan 2023, the follow-up to PSMP 2016, it would not be until 2040 that the reserve capacity will come down to 20 percent.

In the 2030s, the reserve capacity will remain at around 30 percent, it said.

The government has been increasing the capacity without considering the rise in demand, the CPD said in a study last week while presenting a comparative supply-demand picture.

Until 2018, the power generation capacity increased proportionately, but later, the power demand and generation capacity went in different directions, the study said.

Due to the excess capacity, the government needs to keep a good number of power plants idle daily, which is costing the exchequer in capacity payments.

Last fiscal year, the PDB had to pay more than Tk 26,000 crore as capacity payments.

Despite increasing the electricity prices in the first quarter of last year, the PDB reported a loss of Tk 43,539 crore for fiscal 2022-23 while the government allotted a subsidy of Tk 39,534 crore to them, according to a CPD study published last week.

There is a correlation between government subsidy and capacity payments, the CPD study said.

PDB has been incurring losses mainly due to an increase in operating expenses driven by the use of diesel or furnace oil for power generation in rentals and quick rentals alongside a significant amount in capacity payment to independent power producers, Moazzem said.

"The government should reduce the cost of electricity production instead of burdening people with increased tariffs to cut subsidies in the sector," he added.

The power generation cost increased as a result of faulty systems, wrong policy and overcapacity, said M Shamsul Alam, vice-president of Consumers' Association of Bangladesh.

None of the power distribution companies made a loss but the PDB did, he said.

"When the government brought the private power producers into the business, they didn't create any competition. How much money have they spent, how much they are making as profit, nobody knows."

When demand increased by only 3 percent, the government increased the capacity by 12 percent, he said.

"This is injustice," he added.

The government counts many abandoned or old power plants in calculating the capacity, said Mohammad Hossain, director-general of Power Cell.

"It's for showing the government's success at a bigger scale. Ultimately, there is more or less 20 percent reserve capacity, not more than that," he added.​

 

[Saif]

LNG Processing: Capacity to outpace demand

Bangladesh will end up with surplus LNG regasification capacity by the end of this decade, said the UK-based BMI Research -- a development that will ultimately cost the exchequer in fees similar to capacity charges for power plants.

www.thedailystar.net

LNG Processing: Capacity to outpace demand​

Says UK-based BMI Research; idle facilities rack up capacity charges

Representational image. File photo

Bangladesh will end up with surplus LNG regasification capacity by the end of this decade, said the UK-based BMI Research -- a development that will ultimately cost the exchequer in fees similar to capacity charges for power plants.

At present, there are two floating storage and regasification units (FSRUs) -- which re-gasifies the imported liquefied natural gas and supplies to the national grid -- with a combined annual capacity of 7.6 million tonnes (mtpa).

The government has planned four more LNG terminal projects: one onshore in Matarbari with the capacity to regasify 7.6 mtpa LNG, two FSRUs with the same capacity in Moheshkhali and Payra, and extending the capacity of one of the two existing FSRUs.

Based on the planned projects, an additional 21 mtpa of LNG regasification capacity will be added before the end of the decade, said BMI Research in its latest commentary on Bangladesh's oil and gas sectors.

In 2023, Petrobangla signed two additional long-term LNG sale and purchase agreements with QatarEnergy and Oman Trading International for 1.8 mtpa and 1.5 mtpa, respectively.

Petrobangla's contracted LNG imports are expected to increase to up to 6.8 mtpa when the two new contracts begin LNG deliveries in 2026.

"Based on the projected LNG import outlook, Bangladesh will have significant surplus LNG regasification capacity," said BMI Research, a Fitch Solutions company.

Besides, Petrobangla is also seeking to import 3.8 mtpa of gas from India's H-Energy through the 275 km cross-border pipeline from Kanai Chatta in the East Midnapore district to Shrirampur in Khulna.

"It remains uncertain whether all new LNG terminals will be built in light of Bangladesh facing several challenges, including the lack of gas transmission pipelines to support gas distribution and proposed pipeline natural gas imports from India," BMI Research said.

Meanwhile, the government has been unable to utilise the existing regasification capacity of 7.6 mtpa.

Bangladesh imported the highest 5.06 mtpa in fiscal 2021-22, according to the data from Petrobangla. Last fiscal year, 4.08 mtpa of LNG was imported.

Just like the capacity charges for power plants, the regasification units have a fixed cost based on the installed capacity, according to Petrobangla officials who spoke to The Daily Star on the condition of anonymity to speak candidly on the issue.

"Petrobangla could not utilise the full capacity until now," said one of the officials, while declining to disclose the fixed charges that the government has to bear for keeping the regasification facilities idle.

The government has been underutilising the existing FSRUs since 2018 when they started importing LNG, said M Shamsul Alam, vice-president of the Consumers' Association of Bangladesh.

"All these projects were awarded unsolicited as well," he said, while calling for proper feasibility studies before taking on any project.

On the other hand, natural gas production has consistently fallen since peak production of 27.6 billion cubic metres (bcm) in 2016.

"We anticipate that Bangladesh's natural gas supply woes will worsen due to insufficient investment in upstream exploration activities," BMI Research said.

To reverse the production decline, in February last year Petrobangla announced its plan to drill 46 wells between 2023 and 2024.

But not much progress has been made on that front, the report said.

"We see limited room for substantial growth in supply."

Subsequently, BMI Research has forecast Bangladesh's natural gas production to decline by 3 percent annually during the period. The country's natural gas production is expected to decline further to below 20 bcm by 2028, widening the deficit to up to 18.4 bcm.

"Our faulty policy has brought us to a situation that we have become dependent on importing LNG more and more," said Badrul Imam, honorary professor at the University of Dhaka's geology department.

The government's recent moves to drill 46 onshore gas wells and go for offshore gas exploration have come too late in the day.

"We are already late. We needed to initiate rigorous drilling projects at least five years earlier. We need to wait some more years to get the results of these initiatives," Imam added.

At the end of the day, it is the consumers who suffer in every way: they have to bear the additional charges for the government's wrong decisions and also have to make do with less than their required volume of gas, said CAB's Alam.

"This impacts the overall economy ultimately," said Alam, also the dean of Daffodil International University's faculty of engineering.​

 

[Saif]

Ten years delay in oil-gas exploration a testament to short-sightedness and ineptitude

Bangladesh’s gas cannot be exported—this must be a properly documented red-line condition.

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Ten years delay in oil-gas exploration a testament to short-sightedness and ineptitude​

Dr Badrul Imam

Dr Badrul Imam, energy expert and retired professor of Dhaka University's Department of Geology speaks to Golam Mortoza of The Daily Star about the overall procedure of oil-gas exploration in Bangladesh, its reserve situation, and export opportunities.

You have always opined that we should give more focus to oil-gas exploration on both land and sea. After almost a decade, it seems the matter is getting some importance. What is your view in this regard?

​

I think we are already too late. If you look at the last 10 years, since 2012, we haven't done much regarding the ocean. Our huge and resourceful sea has a lot of potential. Both Myanmar and India have discovered gas there. We stayed mostly idle. I always find this decision illogical. One of our biggest weaknesses in the gas sector is that we have not utilised our vast sea.
Finally, we are taking some initiatives. It's better late than never. Now that we have started, we should move forward properly. If we could have started this initiative five years ago, then by now we would have gotten some gas supply. The exploration just started; it will take a long time before we get the gas from the sea.

International organisations have been asked to submit their tenders. How long do you think the entire process might take for us to get gas?

It will take at least five years to get it. Tender seeking, acceptance, and initiation of the process—all that will take at least one and a half years. The bid-winning firm will take another year for the initial preparations. After that, they would eventually head towards the sea. Two more years will be needed to do the survey, exploration, and excavation. After these steps, we can start talking about getting gas. Even when the gas is identified, we will have to set up pipelines to bring it in. That will take some more time.

This is why I keep asking, why did we sit idle for 10 years? We marked our sea borders in 2021. Myanmar and India finished their work in 2014. Now we have to pay for sitting idle for a decade.

What could be the reasons for sitting idle like that?

There's no reason. It is just another example of short-sightedness and ineptitude.


Both Myanmar and India identified huge amounts of gas underwater. We might also get a similar amount. Foreign firms usually extract and sell the gas quickly and leave with the proceeds. Sometimes they sell it to other countries, in which case, how useful will it be for Bangladesh?

Bangladesh's gas cannot be exported—this must be a properly documented red-line condition. No matter what the circumstances, there should never be a scope for exporting this gas. However, in the tender document, it has been mentioned that if the extracted gas is not bought or used by Bangladesh, it can be exported. It is better not to write this. However, the oil-gas extracting organisations put pressure to include it. Because, when they go for bank loans, the bank demands to keep an option for export in the organisation's working plan.

However, our reality is different, because we do not have anything else. As long as Bangladesh needs it, we have to use this source. The demand is rising exponentially and the supply is dwindling. Thus, even if we increase the supply, it will never be able to match the demand. Thus, a certain amount of LNG import must continue.

The amount of gas that we are expecting to extract may not be needed immediately. We may be able to use it for years. However, the foreign firm might want to get it extracted as fast as possible so that it can maximise its profits.

We have to keep the production low. We don't have to extract it all in one go. If needed, we will take 10 years to extract the amount of gas that could have been extracted in a year.

Would the foreign firm agree to this condition?

It's a logical question. However, we have to strike a balance here. If the foreign firm is given the liberty to extract and sell as much as it wants, that's one thing. However, to uphold the nation's interests, the contract can specify that gas extraction should be as per the nation's demand levels. They will conduct business, but the pace will be slower. Such contracts are signed across the globe and international firms are also aware of the logic behind it. However, whether we can make them agree to it or not solely depends on our negotiation skills.

We made the right call by focusing on gas extraction. However, it will not be wise to quickly extract and deplete this source. Extraction should be as per demand, and the extracted gas should not be exported under any circumstances.

Will Bangladesh buy gas from foreign firms as per the international market value set in dollars?

Yes, the gas price will be determined per the international crude oil price. Currently, the crude oil price is $80. Thus, each unit of gas will be sold at $8. The gas price will go up and down as per the crude oil price.

Was there a survey done to determine the amount of gas reserves in the different blocks of Bangladesh's sea borders?

Some general surveys were conducted, but no information was available regarding the specific amount. However, as a whole, it can be said that compared to the western blocks, the eastern blocks may contain a higher amount of gas. Thus, foreign firms are more interested in the eastern blocks.

These blocks are adjacent to Myanmar. As Myanmar explored a huge amount of gas, it is being assumed that we will also find a large amount in our blocks.

Is there an opportunity to only allow extraction from a few blocks instead of all of them?

Yes, we can permit extraction from only a few blocks. It depends on the government's decision.

The government keeps on stressing that foreign firms will not show interest unless they are allowed to export.

This depends on the negotiations completely. Bangladesh needs a lot of gas, so why can't the government explain this to the foreign firm? No matter how much gas they extract, it will not meet our demand. We don't have any other form of fuel. We run everything on gas. Thus, the foreign firm should not be afraid of the fact that we might not buy the gas they extract and they will need to export to make a profit.

Did Myanmar and India only get gas from their blocks, or did they get oil as well?

They mainly discovered gas. A small amount of oil exists here, but it is inadequate.

Foreign firms surveyed our blocks. Do you know about their findings?

TGS did some surveys. Bangladesh commissioned a survey work where TGS jointly worked with another US-based firm. They will now sell this survey report to other firms so that they can quickly go for gas exploration. This report would be handed over to Bangladesh and sold to other foreign firms.

So, Bangladesh doesn't know yet the exact amount of gas contained within the blocks?

No, we don't. Such a survey has not been conducted. TGS's survey is a basic one. Until the excavation starts, it cannot be said what amount of gas exists. The initial survey gave us a possibility. Now we have to get the precise information by excavating.

You have placed a similar emphasis on land-based sources. Recently we found gas in the third well in Sundalpur. Is the current pace of land-based gas extraction satisfactory?

It is not being emphasised enough. We have been saying for a long time that the Chittagong hill tracts have a lot of potential, but not enough development is taking place. In a way, we can say that it is getting focused—there's a plan to excavate a well within three years. Previously, there were no plans to excavate so many wells. Now it is going on in a big way.

Now we must see whether all the plans get implemented or not, because there was another plan in 2015-16 for excavating 100 wells, but the plan got scrapped after only a few wells were excavated.

BAPEX can excavate wells and extract gas for much cheaper. Still, while excavating wells, Gazprom or other firms get priority over it. Are we still following this policy?

Yes, this policy has not been changed. BAPEX does not get priority. BAPEX has a lot of potential. We have to firmly support it, as it can do a lot.

---

Translated from Bangla by Mohammed Ishtiaque Khan​

 

[Saif]

What to make of Petrobangla’s new oil and gas exploration tender?

The international tender for shallow and deep sea oil and gas exploration sparks some questions regarding its potential success in attracting offshore oil and gas exploration

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What to make of Petrobangla’s new oil and gas exploration tender?​

VISUAL: Shaikh Sultana Jahan Badhon

In a landmark development, Bangladesh took a notable stride in its energy sector by announcing new oil and gas exploration ventures. On March 10, Petrobangla floated an international tender for shallow and deep sea oil and gas exploration. Despite being delayed by at least a decade, this decision marks a pivotal moment in the country's quest for energy independence. Bangladesh, blessed with promising geological formations, has long been recognised for its potential in the gas sector.

However, the exploitation of these resources has been limited. The recent announcement signals a shift towards unlocking the full potential of the nation's hydrocarbon reserves and exploring untapped reserves.

The exploration tender has been launched with much domestic appreciation. Yet, amidst the global investment shift towards green energy sources, the level of attention from international investors remains to be seen. Moreover, the introduction of this initiative is quite delayed. As the world transitions towards cleaner energy sources, Bangladesh's strategic move underscores its commitment to sustainable development while harnessing its natural resources for the benefit of its citizens. However, the country faces economic challenges due to its heavy reliance on oil and gas imports. Exploring untapped hydrocarbon reserves could alleviate this dependency and mitigate the economic crisis. From an energy planning perspective, Bangladesh is moving towards a transformation that includes LNG, hydrogen, and ammonia as primary fuels all being import-oriented, and so energy sustainability remains a major concern.

​

The success of Bangladesh's exploration endeavours will depend on various factors, including technological implementation, regulatory capability, trade negotiation expertise, professionalism, transparency, and geopolitical influence. Overcoming these challenges will be crucial for realising the potential benefits of oil and gas exploration in the region. Nevertheless, the prospects are promising. With the right strategies in place, Bangladesh has the potential to address its deep energy crisis and reduce its dependency on foreign currency reserves.

The international tender for shallow and deep sea oil and gas exploration sparks some questions regarding its potential success in attracting offshore oil and gas exploration. Between 2016 and 2019, Petrobangla proposed conducting extensive deep and shallow sea surveys, aiming for a multi-client survey. However, the government's indecision on the proposal and subsequent delays, exacerbated by the Covid pandemic, resulted in wasted time. In 2022-2023, Bangladesh, in collaboration with a foreign consortium (Schlumberger), finally initiated a crucial multi-client survey in the Bay of Bengal, with a focus on the deep sea area. While such surveys are vital for major oil companies, concerns arise regarding the failure to release historically preserved survey data, to involve relevant international oil companies (IOCs) in past surveys, and to organise the sale of this new survey data into accessible packages. Petrobangla has outlined the availability of eight data packages for purchase by interested IOCs. However, before delving into the specifics, it's crucial to define what makes these packages lucrative. Understanding why IOCs would perceive these data packages as valuable and view both deep and shallow sea blocks as having potential is essential.


Bangladesh's oil exploration journey dates back to 1974 when six foreign oil companies surveyed our sea. Subsequent surveys by Cairn India, Santos Ltd, ConocoPhillips, and Posco Daewoo generated valuable reports, stored in Petrobangla's database. However, the reluctance to utilise this existing data and the lack of incentives in the Offshore Model Production Sharing Contract (PSC) hindered progress. The Ministry of Power, Energy, and Mineral Resources (MPEMR) and Petrobangla's combined failure to leverage stored data for bidding purposes underscores the need for proactive measures. Hence, the absence of high-quality data that failed to attract IOCs in the past. While some IOCs have shown interest, concerns persist about the inefficient management, poor trade negotiation skills, and unprofessional mentality within Petrobangla and the ministry. Effective management and the deployment of qualified professionals are essential for enhancing the attractiveness of the bidding process.

Past experiences with companies like ConocoPhillips, Santos, Posco Daewoo, and Woodside Energy highlight challenges related to unattractive PSCs and fixed gas prices.

While the new PSC addresses these issues, other unconventional concerns remain regarding the non-transparent intention to appoint preferred contractors, inclined conflict of interest towards LNG import groups, geopolitical issues in accessing the Bay of Bengal, and circumvention of bidding processes. Resolving these issues is imperative to maintain investors' interest. The departure of IOCs due to dissatisfaction with the current management, particularly the state minister of the MPEMR, underscores the urgent need for leadership changes. Despite efforts to address concerns and offer financial incentives, including adjustments to gas prices, companies like Santos may not return to Bangladesh without substantial management reforms.

In terms of oil and gas extraction in shallow seas, Bangladesh has faced significant setbacks, particularly in two potential blocks—SS-10 and SS-11. Myanmar has successfully extracted substantial gas reserves from wells named Mia and Shwe since 2013, following the resolution of a maritime boundary dispute in 2012. The reasons behind Bangladesh's delay since 2013, whether attributed to corruption, inefficiency, or diplomatic issues, needs a thorough examination. Woodside Energy, an Australian company, expressed interest in exploring for oil and gas in five blocks adjacent to Myanmar, where they had confirmed reserves. Despite this, Bangladesh did not pursue the proposal based on advice from advisors. Two survey biddings were cancelled by the ministry because their favoured company did not get them.

Geopolitical considerations may also be at play, with the US seeking entry into Bangladesh's deep sea territories to counter China's influence in the region. Major companies like ExxonMobil and Chevron have shown keen interest. However, doubts persist regarding the technical and negotiating capabilities of Petrobangla and the MPEMR. These concerns underscore the complexity of the challenges involved in navigating Bangladesh's oil and gas sector.

Certainly, the MPEMR minister and energy advisor bear significant responsibility in this matter. Their role involves safeguarding the interests of specific groups. If the prevailing uncertainty remains unresolved, it appears that even with a favourable PSC, companies like Santos may opt not to return, exacerbating the situation.

In addition to the challenges mentioned, there are also objections regarding tender-related expenses. The extensive advertisement in nine newspapers across the country, paid reports in prestigious publications like The Economist, and the six-month roadshow are perceived as wasteful expenditures of time and resources. In response to this author's questions, Khondkar Saleque, an expert in energy sector tendering and negotiation, suggested that Petrobangla should make historically preserved data accessible to interested parties. Rather than conducting inefficient roadshows abroad, Saleque proposes inviting interested IOCs to Bangladesh for in-depth discussions. This approach aims to streamline the process, minimise unnecessary expenses, and facilitate more direct engagement with potential investors.

Faiz Ahmad Taiyeb writes on sustainable development and is a public policy critic. He has several books to his credit, including 'Fourth Industrial Revolution and Bangladesh', 'Bangladesh: Development Trajectory And Democracy Deficit' and '50 Years of Bangladesh Economy.'​

 

[Saif]

Another albatross around the neck of the energy sector?

Surplus LNG regasification capacity predicted to emerge as a headache

www.thedailystar.net

Another albatross around the neck of the energy sector?​

Surplus LNG regasification capacity predicted to emerge as a headache

VISUAL: STAR

It is worrying to learn of the widening gap between our LNG imports and regasification capacity, with a UK-based research firm predicting that Bangladesh will end up with surplus regasification capacity by the end of this decade. This, among other things, means incurring hefty capacity charges similar to what we are already having to pay for the idle or underutilised power plants. The burden of these charges, it goes without saying, will inevitably fall on consumers. The question is, why are we allowing another potential albatross around the neck of the energy sector?

The looming surplus comes on the back of Bangladesh's increasing reliance on costly LNG imports as well as a continued decline in natural gas production, which is unlikely to see a substantial reversal despite recent efforts by Petrobangla. Currently, Bangladesh has two Floating Storage and Regasification Units (FSRUs)—which convert LNG, or liquefied natural gas, back to gas before supplying it to the national grid—with a combined annual capacity of 7.6 million tonnes (mtpa). An additional 21 mtpa of regasification capacity will be added if the planned four LNG terminal projects, including additional FSRUs and an onshore terminal, come into existence. However, the government has consistently failed to utilise the existing capacity so far, and even if the expected boost in LNG imports is factored in, Bangladesh will still have "significant" surplus capacity, researchers say.

Like the capacity charges for power plants, the regasification units also have a fixed cost based on their installed capacity, meaning that there will be no getting around the payment regardless of whether we can utilise it or not. So, why are we heading down a path that is certain to incur the same wasteful expenditure? This represents a glaring lack of foresight on the part of policymakers. The priority, instead, should have been addressing concerns surrounding supply and price fluctuations as well as proper utilisation of existing capacity. Moreover, there is a crying need to boost production of natural gas, which experts say should have been prioritised long time ago.

We urge the government to learn from past mistakes and undertake comprehensive feasibility studies and risk assessments before expanding LNG regasification capacity. Given the damage it has already done to the energy sector through various questionable policies, it should urgently engage experts to chart the sector's future trajectory, and boosting gas exploration and production must be a vital part of it. Furthermore, we must enhance energy efficiency and promote renewable energy sources to reduce reliance on fossil fuels and mitigate environmental impact.​

 

[Saif]

iFarmer and EBL team up to ensure easy financing for local farmers

To simplify the process of financing farmers and make agricultural funding more equitable, iFarmer and Eastern Bank Ltd PLC (EBL) have recently signed a Memorandum of Understanding (MoU), says a media statement. M Khorshed Anowar, DMD and Head of Retail and SME Banking, EBL; and Fahad Ifaz, CEO an

thefinancialexpress.com.bd

Germany’s experience in technology can help Bangladesh develop wind power: Nasrul​

UNB

Published :​

Mar 20, 2024 19:39

Updated :​

Mar 20, 2024 19:39

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said Germany’s experience in wind technology can make a special contribution to Bangladesh’s wind power.


He said this during a meeting with Dr. Barbel Kofler, German Parliamentary State Secretary of the Ministry of Economic Cooperation and Development in Berlin on Tuesday.

During the meeting they discussed various issues of mutual interest.

The State Minister also said that cooperative efforts between Bangladesh and Germany in the field of renewable energy will have a positive impact.

He noted that Bangladesh is successfully implementing the Solar Home System Programme with a special emphasis on innovation and resilience.

“This groundbreaking initiative is attracting rural communities to clean and sustainable energy sources; At the same time, they are self-reliant by realising their hopes and aspirations," he told the German State Secretary.

He said that the solar home system programme not only lights the house but also brings a light of hope to those who were previously in darkness.

Additionally, Bangladesh has announced its commitment to renewable energy and climate resilience through initiatives such as the Mujib Climate Prosperity Plan.

By leveraging global partnerships and resources, Bangladesh is committed to mitigating the effects of climate change, he added.

The state minister also said that the recent commissioning of a 60 MW onshore wind power has marked a significant milestone in Bangladesh’s progress in the field of energy.

This achievement not only highlights Bangladesh’s commitment to reduce its dependence on traditional energy sources but also shows its willingness to cooperate with developed countries including Germany in renewable energy.

The state minister said the innovation and partnership are a green signal for future generations of both the countries. This green signal will set an example for others to follow.

The Parliamentary State Secretary of Germany expressed interest in the overall situation of electricity and energy in Bangladesh and said that Germany will cooperate in the development of renewable energy in Bangladesh.​

 

[Saif]

Nasrul hopes Germany to further cooperate in clean energy

As Bangladesh government is moving forward with the goal of generating 40 per cent of electricity from clean energy in 2041, State Minister for Power, Energy and Mineral Resources Nasrul Hamid hoped that Germany will further cooperate in renewable energy sector. “We always encourage increase

thefinancialexpress.com.bd

Nasrul hopes Germany to further cooperate in clean energy​

BSS

Published :​

Mar 22, 2024 19:58

Updated :​

Mar 22, 2024 22:50

As Bangladesh government is moving forward with the goal of generating 40 per cent of electricity from clean energy in 2041, State Minister for Power, Energy and Mineral Resources Nasrul Hamid hoped that Germany will further cooperate in renewable energy sector.

“We always encourage increase of fuel-mix share of renewable energy,” he said on screen after the two-day long 10th Berlin Energy Transition Dialogue (BETD) at the Berlin headquarters of the Federal Foreign Office of Germany.

In the Berlin Energy Transition Dialogue, Nasrul Hamid held three meetings with ministers from 70 countries and discussed challenges and solutions on renewable energy and energy transition.

He raised the issue of technology transfer and finance among other countries’ ministers and talked how quick Bangladesh can go for renewable energy.

“I have talked with Germany Foreign Minister about challenges and expenses of renewable energy installation,” he said.

“We had close-door meetings on how Germany can help us to expand clean energy. Meetings were also held with Vice Chancellor of Germany and Deputy Secretary of Parliamentary Committee,” the state minister said.

He reiterated Bangladesh’s national goal of achieving 40 percent power production from clean energy by 2041 under Prime Minister Sheikh Hasina’s leadership.

Nasrul Hamid said Germany acknowledged Bangladesh’s progress in transitioning to clean energy and praised the government’s roadmap.​

 

[Saif]

https://www.thedailystar.net/news/bangladesh/news/bangladesh-robbed-14b-3-years-3574361

‘Bangladesh robbed of $14b in 3 years’​

Says PM’s energy adviser on global oil price hike

Tawfiq-e-Elahi

Bangladesh was robbed of $14 billion in the past three years because of the spike in global oil prices, said Tawfiq-e-Elahi Chowdhury, the prime minister's energy adviser.

"All the oil companies and exporters increased the oil price. In my calculation, they have robbed us of around $14 billion since 2022. How can an economy be stable if a country's wealth is taken in such a way?"

Chowdhury's comments came at a seminar on "Unpacking the Economic Manifesto of the Awami League: Trends and Challenges for Tomorrow's Bangladesh" in Dhaka organised by the Bangladesh Institute of Development Studies (BIDS).

In the middle of 2020, crude oil prices plummeted to $25-$30 a barrel as demand shrank for the global coronavirus pandemic.

But once the impacts of the global health crisis petered out in 2021, the prices began to creep up and it went through the roof after the Ukraine war that began in February 2022.

The higher prices meant Bangladesh had to pay more for fuel, which ate up the foreign currency reserves at an alarming rate. The shrinking reserves meant the dollar appreciated substantially against the taka, raising the prices of practically everything in Bangladesh, an import-dependent country.

Subsequently, inflation hit a decade high.

Economic instability hit Bangladesh after the global fuel price started climbing, Chowdhury said, while blaming the Ukraine war for the price hike.

"Had the Russia-Ukraine war not broken out, Bangladesh would have remained in a much better shape. We are the victim of geo-political tensions."

Global lenders have also increased the interest rate of loans, which has made borrowing costlier for Bangladesh.

"Still, Bangladesh is doing well," Chowdhury added.

At the event, Finance Minister Abul Hassan Mahmood Ali blasted the people who had said Bangladesh would face the same economic turmoil as Sri Lanka. "Many had said we would become like Sri Lanka but it didn't happen."

"Many international banks and agencies have come forward to lend to us."

Germany, South Korea and Saudi Arabia are particularly coming forward to invest.

"The way new investment is coming into the country is a good thing. The country is doing well. We believe that we will be able to overcome the obstacles we are facing," he added.

Mashiur Rahman, the prime minister's economic affairs adviser; Kamal Abdul Naser Chowdhury, education and cultural affairs adviser to the prime minister; Manzoor Ahmed, an emeritus professor of BRAC University; and MM Akash, a former professor of the University of Dhaka's economics department, also spoke.

Binayak Sen, director general of the BIDS, moderated the event.​

 

[Saif]

Saudi Arabia's Islamic Trade Finance Corp to provide $1.4 billion to Bangladesh Petroleum

The ITFC, part of Saudi Arabia's Islamic Development Bank, said the financing was aimed at developing Bangladesh's energy infrastructure

www.thedailystar.net

Saudi Arabia's Islamic Trade Finance Corp to provide $1.4 billion to Bangladesh Petroleum​

The Islamic Trade Finance Corporation (ITFC) signed an agreement on Monday to provide $1.4 billion to the Bangladesh Petroleum Corporation, Saudi Arabia's state news agency SPA reported.

The ITFC, part of Saudi Arabia's Islamic Development Bank, said the financing was aimed at developing Bangladesh's energy infrastructure.

"This agreement is a testament to the successful long-term partnership between the two parties and the financing plan will ensure energy security for one of the fastest-growing economies in South Asia," SPA said.
SPA did not say what form the financing would take.​

 

[Saif]

Contracts of Summit’s three power plants extended

The plants are located in Dhaka’s Ashulia, Narshingdi’s Madhabdi and Cumilla’s Chandina

www.thedailystar.net

Contracts of Summit’s three power plants extended​

The plants are located in Dhaka’s Ashulia, Narshingdi’s Madhabdi and Cumilla’s Chandina

The government has extended the contracts of Summit-owned three gas-based power plants for the next five years.

The plants are located in Dhaka's Ashulia, Narshingdi's Madhabdi and Cumilla's Chandina, which have a combined capacity of around 50 megawatts (MW).​

​

Yesterday, the cabinet committee on government purchase approved the extension of the power plants.

All three plants were established in 2003 and the contracts expired on November last year.

There will be no provision of capacity payments in the extended power plants, said Md Mahmudul Hossain Khan, secretary for coordination and reforms of the cabinet division.

"They will only get the operational charges which would cost Tk 6.04 per unit," he said.

In the next five years, the government would save Tk 0.0725 per unit electricity while the total save would be Tk 6.81 crore.

Meanwhile, the Summit Group informed the cabinet meeting on economic affairs that it has formed a special purpose vehicle company named Summit LNG Terminal II Co Ltd, which will build and operate the country's third Floating Storage and Regasification Unit.

The unit with 600 mmcfd capacity was supposed to be built by the Summit Oil and Shipping Co Ltd.​