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No gas supply to new power plants after 2012: roundtable informed

December 05, 2008 00:00:00


Chief Advisor's Special Assistant for Power and Energy Ministry Dr M Tamim today (Thursday) said political understanding and consensus are imperative for the development of the country's energy sector, reports UNB.
"If there is no political consensus, it will be very difficult for the next elected government to carry forward the energy sector," he said while addressing a roundtable discussion at CIRDAP auditorium in the city.
Organised by the Energy and Power magazine, the function was addressed among other by former energy secretary Towfiq-e-Elahi Chowdhury, former PDB chairman ANM Rizwan, former Petrobangla chairman Dr. Hossan Mansor and Petrobangla chairman Jalal Ahmed.
Petrobangla Chairman Jalal Ahmed informed the gathering that the country's gas production would come down after 2011 if there is no new gas discovery. As such, he said, that the Petrobangla had decided not to supply any more gas to any new power station after 2012.
Earlier, BUET Professor Ijaz Hossain made a presentation on the seminar's topic "Appropriate Energy Mix for Sustainable Development."
Giving an overview of the country's energy sector, Special Assistant Tamim cautioned that the country had only two years breathing space for development in energy sector. "Within this limited time, we have to develop our coal and power sector, and find an alternative to gas," he added.
Dr Tamim also said the local gas price is still undervalued as the state-owned BAPEX's production cost is Tk 60-70 or US$ 1.0 per unit while the production cost of international oil companies is between Tk 70 and Tk 110 per unit (1000 cubic feet gas).
"Still we're thinking about a gas price of Tk 10 per unit, which is very unrealistic. The gas price in Bangladesh is lowest in the world," Tamim said.
He pointed out that per unit gas in Myanmar is US7.5-9.00 while it is US$ 4.33 or Tk 300 in India.
Speaking on the occasion, Professor Hossain Mansor said that the government should award all the onshore gas blocks to the state-owned BAPEX and only the offshore block should be given to IOCs.
Towfiq-e-Elahi Chowdhury said no physical work is seen in the country although there is always discussion on the energy sector's development issue.

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