Summit to produce about 1,200 MW electricity
Wednesday, 12 May 2010
A leading power producing firm in Bangladesh said on Monday it would invest $1.2 billion to generate 1,200 megawatts (MW) of electricity to ease a nagging power crisis badly affecting industries, reports Reuters.
"We plan to produce about 1,200 MW of electricity with an investment of $1.2 billion over the next three years," Muhammad
Aziz Khan, chairman of Summit Group of companies, told the news agency in an interview.
The group set up the south Asian country's first private electricity generating company in 1998.
Summit, with a market capitalization of more than $1 billion and partnership with the U.S. based General Electric Co is now generating 330 MW of electricity, about 10 percent of the total power in the national grid. General Electric Company (GE) holds a 20 percent stake in the Bangladesh firm.
Bangladesh, reeling under a deepening energy crisis, is in danger of a collapsing manufacturing sector and brewing political unrest due to power shortages.
The country, which in early 2002 contemplated exporting gas and coal, has now become energy deficient, partly because of a lack of appropriate policies to extract coal and explore gas.
"We did not make appropriate investment in these two vital sectors, that has caused this situation," Aziz, the founder President of Bangladesh Energy Companies Association, said.
"I believe we have ample gas and coal reserves to sustain Bangladesh in the foreseeable future," said Aziz, who also owns and operates ports and communications.
U.S. Geological Survey estimates Bangladesh has at least 32 trillion cubic feet of recoverable natural gas in 2003, and huge reserves of explorable coal.
Energy officials say the country has more than 3.4 billion tonnes of low sulphur coal in six fields but has yet to extract it as government remains undecided on how to proceed.
"We need to invest ... to convert these substantial reserves into usable resources," the Summit chairman said."
"We plan to produce about 1,200 MW of electricity with an investment of $1.2 billion over the next three years," Muhammad
Aziz Khan, chairman of Summit Group of companies, told the news agency in an interview.
The group set up the south Asian country's first private electricity generating company in 1998.
Summit, with a market capitalization of more than $1 billion and partnership with the U.S. based General Electric Co
Bangladesh, reeling under a deepening energy crisis, is in danger of a collapsing manufacturing sector and brewing political unrest due to power shortages.
The country, which in early 2002 contemplated exporting gas and coal, has now become energy deficient, partly because of a lack of appropriate policies to extract coal and explore gas.
"We did not make appropriate investment in these two vital sectors, that has caused this situation," Aziz, the founder President of Bangladesh Energy Companies Association, said.
"I believe we have ample gas and coal reserves to sustain Bangladesh in the foreseeable future," said Aziz, who also owns and operates ports and communications.
U.S. Geological Survey estimates Bangladesh has at least 32 trillion cubic feet of recoverable natural gas in 2003, and huge reserves of explorable coal.
Energy officials say the country has more than 3.4 billion tonnes of low sulphur coal in six fields but has yet to extract it as government remains undecided on how to proceed.
"We need to invest ... to convert these substantial reserves into usable resources," the Summit chairman said."