$5b energy projects to be on offer for overseas investors
Friday, 27 November 2009
M Azizur Rahman
The government will offer energy projects worth $5.0 billion to global firms for investment during the overseas road shows in London, New York and Singapore slated for next month, officials said Wednesday.
"The projects include large power plants and a liquefied natural gas (LNG) terminal," power secretary Abul Kalam Azad told the FE.
The power ministry will urge international reputed companies to invest in the $4.0 billion power projects and $1.0 billion LNG terminal.
The road shows will be held in London on December 15-16, New York December 17-19 and Singapore December 21-22, said the power secretary.
"We will require investments worth $7.0 billion for electricity generation in the next five years until 2014," Bangladesh Power Development Board (BPDB) chairman ASM Alamgir Kabir told the FE Thursday.
Several multilateral donor agencies, including the World Bank, Asian Development Bank and Japan International Cooperation Agency (JICA), have already committed to provide fund worth $3.0 billion for building the independent power producer (IPP) projects, said the BPDB chairman.
The remaining $4.0 billion IPP projects will be put in place for the global players during the road shows, he said.
The IPP projects that will be put on offer for investment during the overseas road shows include Bibiyana 450 megawatts (mw), Meghnaghat 450 mw and Bhola 225 mw projects.
Four coal-based power plants to generate a total of 2,000 mw of electricity and two furnace oil-run IPP projects to generate 100 mw of electricity each at Savar and Kaliakoir also planned for offer for investment.
"The LNG terminal project worth $1.0 billion has been incorporated for offer alongwith with the large power plant projects for offer to ensure the country's future energy security especially in the port city Chittagong," Petrobangla chairman Dr Hussain Monsur said.
Initially, the LNG project was not planned for offer during the road shows.
The government is planning to set up a LNG terminal in the port city Chittagong with a target to meet the soaring energy demand for the liquefied gas, said the Petrobangla chairman.
He said the capacity constraints of the country's existing transmission pipelines along with the sharp fall of Sangu gas output have led to the energy supply crunch in the port city.
"The Ashuganj-Bakhrabad gas pipeline does not have the capacity to carry gas beyond 185 million cubic feet gas per day (mmcfd) from the country's gas-rich northeastern Sylhet region to the southeastern Chittagong," said the Petrobangla chairman.
This pipeline is currently carrying 170 mmcfd of gas.
The country's lone operational offshore Sangu gas field is now supplying only around 40 mmcfd of gas, which was as high as 220 mmcfd before, he added.
The Sangu is experiencing pressure drop by day and the experts predict the field will be out of operation by next two years, Dr Monsur said.
He said setting up of the LNG terminal in Chittagong and the subsequent import of LNG will end energy crisis in Chittagong as the power plants and industrial units could meet their energy needs by LNG.
A number of industries could not go into operation in the port city only due to energy supply shortfall.
Energy ministry officials said the government has moved to arrange the overseas road shows to woo the global players for investment in the country's energy projects, seen crucial to cope with the country's soaring energy demands.
Bangladesh urgently needs new energy sources as government forecasts have indicated that its current gas reserves will run out by 2014-2015 at current consumption rates.
The country's proven reserves now stand at 6.93 trillion cubic feet (Tcf) and probable reserves at 5.5 Tcf.
The government will offer energy projects worth $5.0 billion to global firms for investment during the overseas road shows in London, New York and Singapore slated for next month, officials said Wednesday.
"The projects include large power plants and a liquefied natural gas (LNG) terminal," power secretary Abul Kalam Azad told the FE.
The power ministry will urge international reputed companies to invest in the $4.0 billion power projects and $1.0 billion LNG terminal.
The road shows will be held in London on December 15-16, New York December 17-19 and Singapore December 21-22, said the power secretary.
"We will require investments worth $7.0 billion for electricity generation in the next five years until 2014," Bangladesh Power Development Board (BPDB) chairman ASM Alamgir Kabir told the FE Thursday.
Several multilateral donor agencies, including the World Bank, Asian Development Bank and Japan International Cooperation Agency (JICA), have already committed to provide fund worth $3.0 billion for building the independent power producer (IPP) projects, said the BPDB chairman.
The remaining $4.0 billion IPP projects will be put in place for the global players during the road shows, he said.
The IPP projects that will be put on offer for investment during the overseas road shows include Bibiyana 450 megawatts (mw), Meghnaghat 450 mw and Bhola 225 mw projects.
Four coal-based power plants to generate a total of 2,000 mw of electricity and two furnace oil-run IPP projects to generate 100 mw of electricity each at Savar and Kaliakoir also planned for offer for investment.
"The LNG terminal project worth $1.0 billion has been incorporated for offer alongwith with the large power plant projects for offer to ensure the country's future energy security especially in the port city Chittagong," Petrobangla chairman Dr Hussain Monsur said.
Initially, the LNG project was not planned for offer during the road shows.
The government is planning to set up a LNG terminal in the port city Chittagong with a target to meet the soaring energy demand for the liquefied gas, said the Petrobangla chairman.
He said the capacity constraints of the country's existing transmission pipelines along with the sharp fall of Sangu gas output have led to the energy supply crunch in the port city.
"The Ashuganj-Bakhrabad gas pipeline does not have the capacity to carry gas beyond 185 million cubic feet gas per day (mmcfd) from the country's gas-rich northeastern Sylhet region to the southeastern Chittagong," said the Petrobangla chairman.
This pipeline is currently carrying 170 mmcfd of gas.
The country's lone operational offshore Sangu gas field is now supplying only around 40 mmcfd of gas, which was as high as 220 mmcfd before, he added.
The Sangu is experiencing pressure drop by day and the experts predict the field will be out of operation by next two years, Dr Monsur said.
He said setting up of the LNG terminal in Chittagong and the subsequent import of LNG will end energy crisis in Chittagong as the power plants and industrial units could meet their energy needs by LNG.
A number of industries could not go into operation in the port city only due to energy supply shortfall.
Energy ministry officials said the government has moved to arrange the overseas road shows to woo the global players for investment in the country's energy projects, seen crucial to cope with the country's soaring energy demands.
Bangladesh urgently needs new energy sources as government forecasts have indicated that its current gas reserves will run out by 2014-2015 at current consumption rates.
The country's proven reserves now stand at 6.93 trillion cubic feet (Tcf) and probable reserves at 5.5 Tcf.