[🇧🇩] Energy Security of Bangladesh

[Saif]

Bangladesh to import 2 more spot LNG cargoes before Eid-ul-Fitr

Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) intends to buy two more spot LNG cargoes during the second half of the current month before the ensuing Eid-ul-Fitr to meet mounting demand during Ramadan. The RPGCL has already floated tenders to purchase the spot liquefie

thefinancialexpress.com.bd

Bangladesh to import 2 more spot LNG cargoes before Eid-ul-Fitr
FE ONLINE REPORT
Published :
Mar 08, 2025 20:51
Updated :
Mar 08, 2025 20:51

Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) intends to buy two more spot LNG cargoes during the second half of the current month before the ensuing Eid-ul-Fitr to meet mounting demand during Ramadan.

The RPGCL has already floated tenders to purchase the spot liquefied natural gas (LNG) cargoes for March 25-26 and March 30-31 delivery windows, said a senior RPGCL official.

If these two tenders become successful, Bangladesh will be able to bag five spot LNG cargoes for March deliveries, which would be the highest LNG purchase from spot market in a single month.

The country’s energy demand is expected to go up during Ramadan and subsequent months afterwards to meet growing demand for irrigation and summer.

According to the weather forecast of the Bangladesh Meteorological Department (BMD), a couple of heat waves are expected to hit over the western and southwestern parts of Bangladesh this month, and the temperature is set to reach around 40 degrees Celsius.

There would be a couple of mild, ranging 36-38 degrees Celsius, and moderate, ranging 38-40 degrees Celsius, heat waves during the later part of March, the BMD said.

There is a possibility of severe nor'westers this month.

The bid winners will deliver the LNG cargoes at Moheshkhali island in the Bay of Bengal, with options to discharge the cargo at either of the country’s two floating storage re-gasification units (FSRUs) located on Moheshkhali island.

The RPGCL, a wholly owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, or Petrobangla, looks into LNG trades in Bangladesh.

The volume of each of the spot LNG cargoes will also be around 3.36 million MMBtu.

Bangladesh previously awarded its latest spot LNG cargo tender to Gunvor Singapore Pte Ltd for the March 15-16 delivery window at US$15.47 per million British Thermal Unit (MMBtu).

Bangladesh currently imports LNG from Qatar Energy and OQ Trading International under long-term deals and purchases LNG also from the spot market to re-gasify LNG in its two operational FSRUs, which have a total capacity of 1.10 billion cubic feet per day (Bcfd).

The country has been reeling from an acute energy crisis as its natural gas output is depleting.

Bangladesh has been rationing gas supply to industries, power plants, and other gas-guzzling industries to cope with the mounting demand.

The country’s overall natural gas supply is currently hovering around 2,843 million cubic feet per day (mmcfd), including 952 mmcfd of re-gasified LNG against the demand for over 4,000 mmcfd, according to official data of Petrobangla as of March 8.​

 

[Saif]

Proposals for setting gas tariffs unconstitutional: BCI

The basis proposed for setting gas tariffs is unconstitutional, against the laws and against the principles of fairness, according to the Bangladesh Chamber of Industries (BCI) recently.

www.thedailystar.net

Proposals for setting gas tariffs unconstitutional: BCI

The basis proposed for setting gas tariffs is unconstitutional, against the laws and against the principles of fairness, according to the Bangladesh Chamber of Industries (BCI) recently.

The proposals were to set gas tariffs solely based on the liquefied natural gas (LNG) import price for new connections and excess gas usage than the sanctioned load for existing connections, it said.

The "unrealistic" and "one-sided" gas price hike during the previous government was the main reason behind the troubles being faced by industries, it added.

In a letter to Bangladesh Energy Regulatory Commission (BERC) on March 9 following a public hearing on price hike proposals, the BCI demanded to reduce gas prices through the curbing of system losses.

"Before the price hike, energy cost used to be 5 to 6 percent among the overall production cost, which now stands at 10-15 percent," wrote the chamber of the industrial community.

For example, the energy cost for producing one yard of fabric was Tk 18 in 2022, and it increased to Tk 26 in 2023, said the letter.

Besides, the cost per kilogramme (kg) for yarn production reached $2.45, whereas it is possible to import each kg of knit fabric from neighbouring countries at $2.18, it said.

As a result, in 2024, knitwear imports increased by 39 percent. "How will industries survive under these conditions?" asked the BCI.

"During the gas price hike in 2023, a promise was made to entrepreneurs for uninterrupted gas supply, but entrepreneurs are receiving only 30-40 percent of the required gas, and production is being hampered due to low pressure," it said.

The BCI said production of every industrial establishment has decreased by 30 percent to 40 percent.

This is due to the "one-sided" decision and the failure to provide uninterrupted gas supply, particularly in areas like Gazipur, Ashulia, Savar, Narayanganj, Munshiganj, Bhaluka, and Narsingdi, it said.

For some industries, such as ceramics and steel, production has decreased by 50 percent, it said.

Consequently, the contribution of industries to the GDP dropped from 8.37 percent in fiscal year 2022-2023 to 3.57 percent in the fiscal year 2023-24, the letter said.

The private sector loan growth increased, foreign direct investment decreased and other indicators also reflect the troubles faced by industries, it said.

The BCI argued that the articles 27 and 31 of the constitution guarantee equality for all and if the proposals were implemented, the same customers would be treated unequally.

Besides, the Gas Act 2010 and BERC Act 2003 clearly state that its goals were to create a competitive market through the participation of the private sector and individuals whereas the proposals were noncompetitive, it said.

"Regardless of the time of connection, all gas customers use a mix of gas supplied from the national grid and imported LNG," it said.

"Therefore, imposing a price nearly two and a half times higher for new customers than for those who were previously connected is contrary to the constitution, the law, and the principles of fairness," the letter concluded.

The consideration of such proposals from the regulatory body caused panic among business owners and entrepreneurs across the country, the letter said.

The BCI suggested to reduce the price from Tk 30 per unit to Tk 24.39 for industrial and business sectors.

It urged to improve the efficiency of the gas distribution companies and cited that reducing waste, particularly reducing the huge system loss of the Titas Gas Transmission and Distribution PLC (13.53 percent) to a minimum level, is necessary to increase gas supply.

Furthermore, it suggested that operating coal-fired power plants at full capacity, removing double VAT and source taxes on LNG imports, and reducing other charges imposed by Petrobangla and BERC, which could lower gas prices as well.

"Business leaders believe that this proposal to increase gas tariffs has thrown everyone concerned in the industrial and business sectors into a state of uncertainty," the letter added.​

 

[Saif]

Fusion energy: The holy grail of clean power

The Earth possesses virtually inexhaustible reserves of the raw materials—deuterium and tritium—essential for a fusion reactor.

www.thedailystar.net

Fusion energy: The holy grail of clean power

General view of the circular bioshield inside the construction site of the International Thermonuclear Experimental Reactor (ITER) in Saint-Paul-lez-Durance, southern France, on November 7, 2019. FILE PHOTO: REUTERS

In light of the escalating challenges associated with climate change, the pursuit of a sustainable, renewable, clean, and plentiful source of energy has reached unprecedented importance. Accordingly, physicists have been investigating the energy released during nuclear fusion reactions, but the challenge of converting it into a viable source of energy has proven to be persistently difficult.

However, the question persists regarding the potential of nuclear fusion to become a primary source of energy for our increasingly power-dependent world. If this possibility is indeed attainable, will it be achieved in time to prevent the catastrophic consequences of climate change?

Nuclear fusion replicates the mechanism that fuels the stars, presenting the prospect of a clean and nearly unlimited supply of energy. In contrast to fossil fuels, fusion does not emit greenhouse gases (GHGs). The fusion reaction, which involves the combination of light atomic nuclei—specifically, isotopes of hydrogen such as deuterium and tritium—offers the promise of generating energy with minimal carbon dioxide (CO2) emissions while avoiding the hazardous, long-lasting radioactive waste linked to current nuclear fission reactors that split heavy radioactive nuclei, uranium-235 or plutonium-239.

The Earth possesses virtually inexhaustible reserves of the raw materials—deuterium and tritium—essential for a fusion reactor. Deuterium is abundantly available in ocean water, with sufficient quantities to feed a reactor for billions of years, but naturally occurring tritium is exceedingly scarce. Nevertheless, it can be generated in a reactor through the neutron activation of lithium, which can be sourced from brines, minerals, and clays.

Despite notable advancements, many challenges remain in the development of a commercially viable fusion reactor. The major ones are: i) reaching the temperature (exceeding 100 million degrees Celsius) necessary to initiate a self-sustaining fusion reaction; ii) containing the extreme heat produced in the plasma, an ultra-hot mixture of gases where electrons are entirely separated from their atomic nuclei; and iii) maintaining the plasma at this superhot temperature for a sufficient duration so that the energy produced surpasses the input energy needed to sustain the process.

The International Thermonuclear Experimental Reactor (ITER), a collaborative project involving 35 nations and currently under construction in Cadarache, France, represents the world's largest fusion reactor. Once operational, it is expected to achieve continuous energy output at a power plant scale, approximately 500 megawatts. However, since its establishment in 2006, the ITER has experienced uneven progress, facing numerous technical setbacks, a complex decision-making framework, and a significant increase in cost projections, which have escalated from five billion euros to nearly 20 billion euros. Additionally, the planned operational start in 2035 may be pushed back to the 2040s.

One of the challenges the ITER faces is how to control the hot plasma at a temperature of around 100 million degrees and keep it away from the walls of the container. No known material can withstand such a high temperature; even extremely heat-resistant metals such as tungsten would melt instantly.

Physicists have developed two rival methods for managing the hot plasma and preventing it from contacting the walls of its containment vessel. These methods are known as magnetic confinement and inertial confinement. The procedures necessitate exceptional precision. Additionally, the intensely heated plasma is inherently unstable—it tends to form large temperature gradients, resulting in powerful convection currents that make the plasma turbulent and difficult to control.

Moreover, a sustained fusion reaction that produces substantially more energy than it consumes has never been achieved. The ITER, which uses magnetic confinement by employing a doughnut-shaped chamber in which magnetic fields keep the plasma in perpetually looping paths without touching the walls, still has not produced a sustained reaction. The longest fusion reaction achieved so far is 17 minutes and 46 seconds, set recently in China.

Attaining the sought-after goal of "net energy" in nuclear fusion has been the holy grail for scientists working in this domain. A net energy gain was notably demonstrated in December 2022 at the National Ignition Facility (NIF), a laser-based inertial confinement fusion research lab located at Lawrence Livermore National Laboratory in California. At the NIF, plasma is produced by directing intense lasers at a small pellet filled with deuterium and tritium.

The ratio of output energy to input energy at the NIF was 1.5. Although this accomplishment represents an important milestone, it is still far from establishing fusion as a practical source of energy. For fusion reactors to be deemed viable for commercial energy generation, they must attain a threshold ratio of 10. The challenges associated with inertial confinement are considerable as well, and at present, only a handful of facilities around the globe are dedicated to its research.

The widely reported success at the NIF elicited a typical range of responses: fervent endorsement from proponents of the technology and scepticism from detractors, who contend that scientists have consistently claimed that practical fusion energy is just two decades away—or three or five decades, depending on the viewpoint. Furthermore, energy production is not a primary objective of the NIF. The facility was primarily designed to initiate nuclear reactions for the purpose of studying and maintaining the US's nuclear arsenal.

As we look to the future, there are compelling reasons to believe that fusion energy will play a consequential role in the energy landscape, particularly as more developing and underdeveloped nations begin to demand levels of energy consumption comparable to those of Western countries. That being said, fusion is not a panacea for mitigating the devastating effects of climate change. Addressing climate change requires decarbonisation of the atmosphere using available technologies, including renewable sources such as solar and wind power, hydropower, geothermal energy, and potentially carbon capture methods.

As for the question of when nuclear fusion will become a reality, there is no clear answer. Nonetheless, experts generally agree that the likelihood of achieving large-scale energy production through nuclear fusion is unlikely before 2050, with some more cautious projections suggesting an even longer timeline. Given that the rise in global temperatures over the coming decades will likely be heavily influenced by our actions—or lack thereof—regarding GHG emissions during this period, it is evident that fusion cannot be considered a near-term solution.

Dr Quamrul Haider is professor emeritus at Fordham University in New York, US. He is one of the authors of the book 'Nuclear Fusion: One Noble Goal and a Variety of Scientific and Technological Challenges' (Intech Open, London, UK, 2019).​

 

[Saif]

Bangladesh govt weighs open-pit coal mining

The interim government is weighing the option of open-pit coal mining, reviving a controversy settled almost two decades ago with the sacrifice of three lives in a rare protest in Phulbari of Dinajpur.

www.newagebd.net

Bangladesh govt weighs open-pit coal mining
Emran Hossain 09 March, 2025, 00:07

$15b investment from unnamed mining co guaranteed

The interim government in Bangladesh is weighing the option of open-pit coal mining, reviving a controversy settled almost two decades ago with the sacrifice of three lives in a rare protest in Phulbari of Dinajpur.

The protest prompted the then government, led by Bangladesh Nationalist Party, to sign an agreement with the protesters, led by the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port.

Scrapping the mining project and cancelling the work permit of Asia Energy, the UK-based company involved in the open-pit mining project, were two of the six points on which the agreement was reached in August 2006.

Asia Energy was later renamed—Global Coal Management Resources.

The Hydrocarbon Unit of the power and energy ministry on February 27 hosted a discussion attended by energy experts, geologists and consumer rights activists with a presentation that categorically promoted open-pit coal mining, particularly in Phulbari.

‘Open-pit mining is not possible in Bangladesh due to its high population density and land scarcity,’ said energy expert Badrul Imam who teaches geology at Dhaka University.

An area double the size of the mine must be there to dump dug-out earth, he explained, adding that the withdrawal of groundwater to facilitate mining will also create water crisis in the area.

The proposition made by the government in the presentation of the Hydrocarbon Unit about restoring land in the mine area with its fertility is also considered far-fetched and impossible by energy experts.

At least 15 villages near the Barapukuria coal mine, Bangladesh’s only active coal mine, where underground mining is in progress, lost their access to water.

The interim government is in favour of open-pit mining in Barapukuria as well.

In February 2012, concerned by a move by the past Awami League government in favour of open-pit coal mining at Phulbari, a group of experts from the United Nations noted that the move would displace an estimated 50,000–1,30,000 people and affect 2,20,000 others by drying up wells.

Awami League was in the opposition during the 2006 unrest and proactively supported the protesters, promising not to allow open-pit coal mining ever in Bangladesh.

The project would destroy some 12,000 hectares of productive agricultural land, waterways supporting 1,000 fisheries, and nearly 50,000 fruit trees, as the mine is located in Bangladesh’s most fertile agricultural land, the UN experts had noted.

The International Accountability Project earlier estimated that 800 million litres of groundwater would need to be lifted to maintain dry condition in the mine, which has deposits at the depth between 150 and 260 metres.

The International Accountability Project also cited the departure of the Australia-based mining giant BHP Billiton from the mine after concluding that the depth of the coal deposits would make mining activity so destructive that it would not be feasible to comply with Australia’s environmental standards or those of any country worldwide.

‘One thing we must remember is that the interim government does not have the authority to decide on an issue like open-pit extraction,’ said Kazi Matin Uddin Ahmed, who teaches geology at Dhaka University and attended the meeting.

The interim government, which replaced the autocratic rule of Sheikh Hasina, is in power to help organise the national election and lacks any mandate to consider doing something regarding the management of natural resources, energy experts observe.

‘The presentation could easily replace the one that the Asia Energy had presented decades ago,’ said professor M Shamsul Alam, energy adviser, Consumers Association of Bangladesh.

‘The government is favouring open-pit coal mining, saying that it intends to start the discussion, making things easier for the next government,’ said Shamsul Alam, who also attended the government discussion.

The Hydrocarbon Unit completed the presentation, made by its director Arup Kumar Biswas, in 17 slides concluding that open-pit coal mining is the only feasible way for coal extraction in Phulbari.

Starting with the recent rise in global coal consumption, particularly in Asia, the presentation argued that coal would remain a major energy source through 2040.

The presentation gave a wrong estimate of the country’s current coal-based installed power generation capacity, inflating the actual capacity by over 2,500MW, while saying that open-pit mining would meet an estimated annual demand of up to 30 million tonnes, saving $4 billion.

Stating that the country’s minable coal deposit is 834 million tonnes, the presentation listed the benefits of open-pit coal mining through comparisons with underground mining and boasted technological advances.

According to the presentation, open-pit mining lowers health risks, reduces mining time while ensuring maximum output, and results in the extraction of co-products.

The Hydrocarbon Unit assured in the presentation of partially refuelling the aquifer, restoring 5,192 hectares of land, half of it agricultural land, to its previous fertile condition and giving farmers their livelihood back within three to five years after the end of mining.

The presentation was also flooded with many economic benefits of open-pit mining in Phulbari, such as the extraction of coal worth $83 billion over 30 years, an income of $16 billion in royalty and taxes, and an extra income of $17 billion from co-products.

The presentation also guaranteed in the presentation a $15 billion investment in working capital and operation from the mining company. The Hydrocarbon Unit, however, did not say who the investor could be.

Power and energy adviser Muhammad Fouzul Kabir Khan could not be reached for comments over phone. Energy secretary Mohammad Saiful Islam did not answer his phone either.

A search online revealed that the GCM Resources was actively pursuing the Phulbari open-pit coal mine project.

The Global Energy Monitor Wiki, an online database of energy projects around the world, shows that Phulbari mine is still a property of the GCM Resources. It has also listed significant developments until 2022 regarding the GCM’s striking a deal with others, mainly from China, to develop the Phulbari coal mine.​

 

[Saif]

Russia seeks continuity of Gazprom’s work in Bangladesh

Russia has sought the cooperation of Chief Adviser (CA) Prof Muhammad Yunus to ensure the continued operations of the state-owned Russian company Gazprom International in gas exploration.

www.thedailystar.net

Russia seeks continuity of Gazprom’s work in Bangladesh

Russia has sought the cooperation of Chief Adviser (CA) Prof Muhammad Yunus to ensure the continued operations of the state-owned Russian company Gazprom International in gas exploration.

The request was made by Alexander G Khozin, the Russian ambassador to Bangladesh, during a meeting with the CA at the State Guest House Jamuna in Dhaka yesterday, according to a statement.

Gazprom has been active in Bangladesh since 2012, partnering in the exploration of gas reserves. In 2023, Gazprom International identified five new wells for further exploration in Bhola, an island off the southern coast.

Prof Yunus expressed gratitude to Gazprom for its efforts in preparing to drill the five wells in Bhola and highlighted that the power, energy, and mineral resources ministry is actively working on the matter.

He also conveyed openness to further collaboration in this regard.

During the meeting, the ambassador discussed a range of issues, including broader trade relations and cooperation between the two nations.

In 2024, the supply of Russian wheat to Bangladesh reached an all-time high, making Bangladesh the second-largest consumer of Russian grain, following Egypt.

From July 2024 to January 2025, approximately 2.3 million tonnes of Russian wheat were delivered to Bangladesh, including 623,000 tonnes (or 6.23 lakh tonnes) under government-to-government contracts.

Russia is also preparing to supply 30,000 tonnes of muriate of potash fertiliser to Bangladesh as a gesture of friendship, the ambassador noted.

He further highlighted a significant increase in the number of visas issued to Bangladeshis seeking employment in agriculture and shipbuilding in Russia.

The number of visas issued between January and March 2025 was four times higher than during the same period the previous year, according to the statement.​

 

[Saif]

Finding a solution to industrial gas tariff disputes

The recent move of the Bangladesh Energy Regulatory Commission (BERC) to raise gas tariffs for industrial and captive power users in line with the LNG import price for new connections and consumption in addition to authorized volume has drawn a strong reaction from the business community. And that

thefinancialexpress.com.bd

Finding a solution to industrial gas tariff disputes
FE
Published :
Mar 11, 2025 21:34
Updated :
Mar 11, 2025 21:34

The recent move of the Bangladesh Energy Regulatory Commission (BERC) to raise gas tariffs for industrial and captive power users in line with the LNG import price for new connections and consumption in addition to authorized volume has drawn a strong reaction from the business community. And that is not unusual because of the fact that the previous autocratic regime in January 2023 had raised gas tariffs by 150 per cent with the assurance that gas supply to the industries would remain uninterrupted. In reality, the promise was never materialised. Small wonder that the industries suffered enormously for want of uninterrupted energy (gas fuel) supply affecting production in all industrial sectors dependent on gas. Then came the July-August's political change through a popular uprising. Against this backdrop, the industries naturally kept their fingers crossed that with the political changeover, their longstanding issues would be finally addressed to the satisfaction of all stakeholders concerned.

Evidently, the BERC's proposal of another round of gas tariff hikes has been a cause for widespread concern among the business community provoking a strong protest from it. In this connection, 14 industry leaders, as reported, jointly lodged their strong protest through a letter to the energy regulator. They have demanded the scrapping of the entire proposal which they described as discriminatory. It is so because, once the gas price hike proposal is implemented, the entities having new gas connections would have to pay 2.5 times more than those with old gas connections. And, if the BERC's proposal for a gas price hike is implemented, the industry leaders have warned that it would seriously impact the country's industrial development, foreign direct investment (FDI), local investment, employment and so on.

Needless to say, the issue calls for urgent attention and a prompt response from the energy regulator, BERC, or even from the highest levels of the administration, since the interests of top foreign exchange-earning industries, other vital private sector enterprises, and SMEs-which create jobs and sustain entrepreneurial activities across the nation-are at stake.

What is noteworthy here is that along with the protest letter, the industry leaders also came up with alternative suggestions of reducing the gas price to a maximum of Tk.24.39 per cubic metre based on the blended cost of imported LNG and local natural gas.

In that case, one would be required to take into consideration the fact that the local supply of gas has been shrinking when both household and industrial demands have been on the rise. The efforts so far to explore new gas fields or develop the existing ones have not been up to the expected level. But as there cannot be any answer to the present needs of the industries, the authorities concerned would be required to deal with the issue with urgency and find a way out of the predicament facing the industries.

The energy regulator would do well to keep in mind that no stopgap measure is going to resolve the gas price issue. A prudent policy in this context is expected from the government to ensure an uninterrupted and stable gas supply at a rational price to protect the manufacturing sector, the heart of the nation's economy.​

 

[Saif]

Urgent need for domestic coal development

Energy sector experts reiterated the need for urgent decision of the government for utilising domestic coal resources at a seminar held in Dhaka. Policy makers, relevant government department officials, academia and researchers gathered on February 27, 2025 at the seminar titled 'Prospects and ways

thefinancialexpress.com.bd

Urgent need for domestic coal development
Mushfiqur Rahman
Published :
Mar 11, 2025 21:23
Updated :
Mar 11, 2025 21:23

A female labourer carries a basket filled with coal at a river bank in Dhaka, Bangladesh on April 30, 2023 Photo : Xinhua Photo

Energy sector experts reiterated the need for urgent decision of the government for utilising domestic coal resources at a seminar held in Dhaka. Policy makers, relevant government department officials, academia and researchers gathered on February 27, 2025 at the seminar titled 'Prospects and ways to overcome challenges of coal resources in Bangladesh.' The seminar was organised by the Hydrocarbon Unit (HCU) under the Ministry of Power, Energy and Mineral Resources at the Biddyut Bhaban, Dhaka. Energy Secretary Mr. Saiful Islam chaired the seminar.

Dr. Arup Kumar Biswas, Director, HCU and Mr. Saiful Islam Sarker, Managing Director, Barapukuria Coal Mining Company Ltd. (BCMCL) made keynote presentations on the coal fields and their resource status in the country as well as the experience of mining coal from Barapukuria underground coal mine. Sector specialists and researchers participated in discussions at the seminar.

It was reported that Bangladesh had so far discovered five major coal fields in the northern districts (Jamalganj, Barapukuria, Khalashpir, Dighipara and Phulbari coal fields). These coal fields have approximately 7,823 million tons of coal. The coal fields have been studied for suitable mining options and their impacts involving various local and international organisations. Available information suggests that Barapukuria and Phulbari fields have been studied intensively for mining and further development. HCU informed that 834 million ton coal could be mined at this stage mainly from Phulbari and Barapukuria coal fields using open cut mining method. BCMCL, a subsidiary company of Petrobangla has been operating a small underground coalmine since 2005 at Barapukuria, Dinajpur. So far, Barapukuria mined approximately 15 million ton of coal from the mine. The coal has been supplied to the mine mouth 525 MW coal fired power plant for generating electric energy (the power plant requires approximately 5,000 ton of coal per day for optimally operating the power plant. But the mine in operation could not supply the required amount of coal due to its limited production capacity). BCMCL needs urgent government decision for expanding its mine operations and mine life. The present mine operation and management contract of the BCMCL with the Chinese Contractor 'XMC-CMC Consortium' remains valid until 2027 for underground mine operations. The Barapukuria coal field (covering an area of 6.68 km2) has a proven reserve of 410 million ton coal within the depths 118-509 meters (mining activities have been limited within the 'central part' of the coal field having 170 million ton reserve). BCMCL has engaged several international consultants to determine mine life extension, improved coal recovery and for safe and efficient coal production options. Managing Director, BCMCL informed the seminar that the 'northern and southern' parts of the Barapukuria coal field could be mined economically only with open cut mine because of the geological, technological and environmental limitations. BCMCL has detailed out its open pit mining technology options, land, water management and resettlement programmes for the mine-affected people. The company believes that open cut mine will allow 90 per cent coal recovery (at a rate of 6 million ton coal production annually from the mine for 30 years of mine life). The mine can secure extraction of premium quality coal that is worth of 30 billion US dollars (at present market value) within its operation life.

HCU informed that the Phulbari coal field had a proven reserve of 572 million ton coal at a depth varying from 150-270 meters below the surface. The deposit is suitable for an open cut mine and can optimally produce 475 million tons of coal (if mined efficiently, Phulbari alone can supply 15 million tons premium coal annually. Phulbari grade 12 million ton of coal will suffice to generate approximately 5,300 MW of power annually). It was reported that the open pit mine initially started with developing a box cut (2 km x 1.5 km area) and the coal would be produced within 2-3 years from the commencement of mine operation. From the 'box cut' the mine gradually moves towards the designed direction at a rate of 200 meters annually.

BCMCL engineers believe that the Barapukuria-Phulbari are adjacent coal fields and if properly planned, one 'box cut' can be developed at the southern part of Barapukuria coal field for developing both the fields. The 'box cut' can optimally be used for expanding the mine towards north for Barapukuria coal deposit and with some can be expanded towards the south for extracting coal from the Phulbari basin. The coal basin represents a world class size of mine and the quality of coal may attract investors (provided the government decides for open cut mining) as a techno-economically feasible option. The government needs to create an enabling environment for mine development investment with appropriate regulatory set up for securing safe mine operation and environmental and social care. A profitable optimum size mine can generate necessary revenue sufficient for supporting several billion dollars worth of investment, safe mine operations, and environment and social care.

HCU further informed that the requirement for supplying coal for power generation has been steadily increasing in the country. Already there are installed coal based power plants in the country with more than 8,000 MW capacity. To operate the power plants, approximately 22 million ton coal (Phulbari-Barapukuria grade coal) is required annually. At the existing coal price at the international market, importing the required volume of coal will involve around US $ 4 billion. Bangladesh has been suffering from foreign currency deficit. The installed coal fired power plants' capacity has been partially used for power generation due to the coal supply shortages. These coal-fired power plants have been installed in the country with the hope that uninterrupted coal supply would be secured to operate the plants as 'base load power plants'. The coal fired plants have been installed for comparatively cheaper electric energy supply. Unfortunately, the expectation, so far, has remained unrealised. On the other hand, the debt burden for the power plant installation and for keeping them idle complicated the situations. Consumers pay more power tariff and government subsidy burdens continue to rise. Energy Secretary Mr. Saiful Islam informed the seminar that 'at times, we have struggled to pay coal import bills due to the foreign currency crisis'. HCU and BCMCL recommended for early decision of the government for developing Phulbari-Barapukuria coal mines. Energy Secretary said 'we must decide whether to use our own coal for power generation.' Energy Adviser Dr. Fauzul Kabir was the chief guest at the seminar and he said that the government was preparing a roadmap for the next political administration to help determine whether to proceed with coal extraction in the country.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues.​