Go-ahead for setting up gas-based units

FE Report
Prime minister's energy adviser Dr Tawfiq-e-Elahi Chowdhury urged on Thursday business people to set up new gas-guzzling industries, assuring them of supplying natural gas in new factories.
The country is going to import LNG (liquefied natural gas) to supply around 1,500 million cubic feet per day (mmcfd) of additional re-gasified gas within the next couple of years, he said.
The first floating, storage and re-gasification unit (FSRU) having the capacity to re-gasify 500 mmcfd of gas is expected to be commissioned this month, he said.
Another 500 mmcfd capacity FSRU would be operational next year, which would be followed by another one thereafter, he said, elaborating on the government steps to supply new gas.
Mr Chowdhury was speaking as the chief guest at a seminar titled, "Oil and Gas Exploration Opportunities in the Offshore Areas of Bangladesh under Production Sharing Contract (PSC)," on the occasion of observing the National Energy Security Day.
Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) organised the seminar to commemorate the historic decision taken by Father of the Nation Bangabandhu Sheikh Mujibur Rahman to take over operation of five gas fields from Anglo-Dutch Shell Oil at a cost of 4.5 million pounds on August 09, 1975.
With energy secretary Abu Hena Mohammad Rahmatul Muneem in the chair, the seminar was addressed among others by Petrobangla chairman Abul Mansur Md Faizullah and Bangladesh Petroleum Corporation (BPC) chairman Md Akram Al Hossain.
Mr Chowdhury said the entrepreneurs should set up big gas-guzzling industries, especially of basic engineering-related ones.
Currently, natural gas connections to industries are almost halted due to scarcity.
The country's overall natural gas production is around 2,768 mmcfd against the demand of around 3,700 mmcfd.
Mr Chowdhury ruled out any possibility of launching new bidding round for onshore gas blocks.
But to develop some onshore gas fields and drill new onshore wells some international oil companies (IOCs) might be assigned on a contractual basis.
Regarding the development of Chhatak East Gas Field, he said that the Ministry of Law, Justice and Parliamentary Affairs has been examining the legal status whether it has any relation to the litigation between the government and Canadian gas exploration company, Niko Resources.
Niko was conducting an exploration work in Chhatak West Gas Field in Sylhet under a joint venture deal with state-run Bangladesh Petroleum Exploration and Production Company Ltd (Bapex).
But following a blowout in the field in 2005, Niko was sued by the government and its all exploration activities in the country including in Feni gas field were halted.
The case with Niko still remained pending with Bangladeshi High Court and another case is pending with the International Centre for Settlement of Investment Disputes (ICSID) in Washington DC.
Petrobangla officials said the Niko East Field remained virgin and has abandoned it since then.
Petrobangla general manager Shahnewaj Parvez, who made a presentation in the seminar, said the government has planned to launch a fresh bidding round for offshore blocks under a new and updated PSC terms.
The Petrobangla chairman said the country would get 1,000 mmcfd of gas next year when two LNG terminals would come into operation.
He said the government has already inked deals with Qatar and Oman to import LNG.
The BPC chairman said the government has undertaken a number of pipeline projects to ensure smooth fuel transportation from Chittagong to Dhaka and from offshore to the Chittagong port area to reduce cost and time of transportation.

Azizjst@yahoo.com