37 Petrobangla is working on sign-ing Production Sharing Contract (PSC) the bid winners would operate in the deep sea under the amended PSC 2012. The Cabinet on September 3 amended the PSC with changes, including increased price for the gas to be produced from the deep sea.
37 Petrobangla is working on sign-ing Production Sharing Contract (PSC) the bid winners would operate in the deep sea under the amended PSC 2012. The Cabinet on September 3 amended the PSC with changes, including increased price for the gas to be produced from the deep sea.
37 Petrobangla is working on sign-ing Production Sharing Contract (PSC) the bid winners would operate in the deep sea under the amended PSC 2012. The Cabinet on September 3 amended the PSC with changes, including increased price for the gas to be produced from the deep sea.
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GPO Box : 677 Dhaka-1000, Bangladesh Tel & Fax : 88-02-8354532 Email: ep@dhaka.net energypower@gmail.com Website: www.ep-bd.com Price Bangladesh: Tk 30, SAARC: US$ 3, Asia: US$ 5, Europe: US$ 6, North America, Africa & Australia: US$ 7.5 A new revolution could be started in using renewable ener- gy in the country through introducing solar systems in irrigation pumps and rooftops, the views expressed by general manager of Rahimafrooz Renewable Energy Limited Sohel Ahmed in an exclusive interview with EP. 37 Petrobangla is working on sign- ing production sharing contract (PSC) during March-April peri- od next year to explore hydrocarbon in the deep offshore Bangladesh. It is expected that bids from the intended companies, who already procured the bid documents, would be invited by this month. The bid winners would operate in the deep sea under the amended PSC 2012. The bidders would be given shortest possible time to submit the bids. Petrobangla is considering the deadline to be some- time in November. The Cabinet on September 3 amended the PSC with changes, including increased price for the gas to be produced from the deep sea. he cabinet on September 3 approved the amended Production Sharing Contract (PSC) of gas sector with changes, including increased price for the gas to be produced from the deep sea. However, there is apprehension over the chances of getting bid response at the fag end of the present government. Civil society group OGPC said the amendment went against the interest of the country and demanded cancellation of it. Petrobangla suggested increasing price for the gas before approving the amendment to the contract. But policymakers were against increasing the price. Experts, however, suggested that the IOCs would not take part in the bids at the gas price declared in the PSC. So there is already a dilemma for the government over increasing the price of gas. Although the cabinet okayed the amendment, there is still scope of reconsidering, if it is really needed. The government must scrutinize every aspects before going for such an important amendment. But national interest should be on top of everything. This is what the nation expects in the final days of this government. COVER FORTNIGHTLY MAGAZINE, VOL 11, ISSUE 7, SEPTEMBER 16-30 The Energy & Power had introduced Green Page marking its step- ping into the 7th year to campaign for efficient use of energy, energy conservation and using envi ronment -f ri endl y energy. Encouraged by the readers and patrons, the EP decided to continue with the pages as it is stepping into the 10th year. The EP would make its best effort to keep up the campaign Page: 29, 31, 32 Green Page 5 WORLD WATCH Latest Development in World 6-7 SNAPSHOT Latest Development 9 COVER PSC: Is The PSC Amendment Enough? COVER ARTICLE 15 Bid to Explore Offshore Without Speculative Survey SPECIAL ARTICLE 17 Comprehensive Strategy for Gas Value Chain REPORT 20 Global Solar PV Module Installations to Face Stable Increase by 2020 21 DoE Tags 50 Conditions For Rampal Power Plant 23 Bangladesh May Propose JV Hydroelectric Project in India 24 China Takes Away TAPI Pipeline From USA 25 Iran Holding 3rd Largest Crude Reserves in World MANAGEMENT 26 Corporate World: Reading For Continuous Learning MEMOIRS 27 Pilgrimage to PETRONAS II GREEN PAGE 29 Improved Cooking Stove for All 31 Govt Outlines $2.76bn Fund Requirement For Solar Projects 32 Solar Powered City Traffic Signals to Be Delayed ARTICLE 33 Hope, Tale & Reality COLUMN 35 Dhaka Residents Are At Odds With Cooking Gas INTERVIEW 37 Sohel Ahmed, General Manager of Rahimafrooz Renewable Energy Limited 5 WORLDWATCH Chinese oil giant Sinopec will pay $3.1 billion for a one-third stake in the Egyptian oil and gas business of US firm Apache Corp. as China builds up its access to global energy reserves. The deal, which is still subject to regulatory approval, marks Sinopecs first entry into Egypts upstream oil and gas sector, according to a company statement. It is the latest major Chinese resources acquisition abroad and comes after CNOOC, another Chinese state-owned energy giant, bought Canadas Nexen in a $15 billion deal last year despite political opposition in that country. The Apache move comes despite political strife in Egypt as supporters of the countrys deposed president Mohamed Morsi clash with the new government installed after the military overthrew him last month. Beijing has encouraged Chinese companies to go abroad to secure supplies of energy and raw materials to keep the worlds second largest economy moving. Through this partnership, Sinopec is able to enter the upstream oil and gas sector of Egypt for the first time and expand its international upstream portfolio, the company statement said. Sinopec Buys Egypts Apache Corp After petrol and diesel, price of CNG was today hiked by a steep Rs 3.70 per kg in the national capital, the second increase in rates in two and a half months. Price of Compressed Natural Gas (CNG) sold to automo- biles in the national capital has been increased from Rs 41.90 to Rs 45.60 per kg with effect from September 10. Also, the price of piped cooking gas, called PNG, for households has been hiked from Rs 24.50 per standard cubic meters to Rs 27.50 per scm. CNG price was last hiked on June 25 when rates went up by Rs 2 per kg - from Rs 39.90 to Rs 41.90 per kg. India Hikes CNG Prices State-run Power Grid of India is preparing a road map for setting up an electricity grid to connect SAARC nations including Pakistan and Sri Lanka. The feasibility study for an under sea line with Sri Lanka is being finalized, according to transmission utility Power Grid Corp. In its annual report for 2012-13, the company said it con- tinues to play an active role in "preparing a road map for developing South Asian Association for Regional Cooperation (SAARC) market for electricity to develop a cross country power grid". The proposed cross country grid is being envisaged for harnessing each SAARC nation's capacities and resources to address growing energy needs in the region. India, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka are part of SAARC. Among others, India plans to export electricity to Pakistan. discussions at government level are being held for interconnection between India and Pakistan through Amritsar (India)-Lahore (Pakistan) line," the report said. For interconnection between India and Sri Lanka, feasibil- ity study for a 400kV, 500/1,000 MW under sea HVDC bipole line is under finalization, the report said. Besides, a transmission line between India and Nepal for transfer of bulk power is under finaliza- tion. An electricity trans- mission line with Bangladesh which is being implemented, is expected to be completed by 2013. Already, India has electric- ity inter connections with Bhutan and Nepal. SAARC Electricity Grid Energy-starved Nepal needs to further strength- en cooperation with India for harnessing its abun- dant hydro-power poten- tial that would benefit both the countries, experts said. The remark was made by energy experts, government officials and politicians during a panel discussion as part of a two-day Power Summit 2013 held recently. They stressed on the need to hasten the pace of power projects being constructed by Nepalese and Indian companies and speed up completion of the cross bor- der transmission lines along the Nepal-India border. Former Finance Secretary Rameshwor Khanal under- lined the need to develop a South Asian power grid and develop hydel power projects with a view to exporting power not only to India but also to Pakistan, Bangladesh and Bhutan by setting up regional transmis- sion lines. There should be multiple buyers and multiple sellers of the hydro-power and more foreign investment should be attracted in the power sector by creating conducive environment, he said. The power developers should be allowed to sell surplus electricity wherever there is a market, Khanal added. Experts For Nepal-India Cooperation on Hydropower 6 SNAPSHOT Titas Gas Transmission and Di s t r i b u t i o n Company Ltd (TGTDCL) disconnected illegal gas connec- tions to 11 residences and one commercial gas connection in Savar and 21 illegal burners in Dhaka recently. The 11 residences and one commercial gas connection were linked with illegally installed 750-foot gas pipeline with one-inch radius at HemayetpurSchoolpara of Savar area, said a press release. On September 5, the connections were disconnected through mobile court in presence of an executive magis- trate and the gas flowing source was permanently closed. On September 3, the TGTDCL divisional inspection team visited AhsanUllah Road and BecharamDewri in Dhaka where 21 burners were illegally using gas. TGTDCL said taking new gas connections by extending the existing gas distribution pipeline is totally illegal and a punishable offence as per the Bangladesh Gas Act 2010. The company requested people concerned to refrain from doing this sort of illegal activities. Disconnection Drive by Titas Gas As part of the implementation of energy and water saving promotion program for textile dyeing process of textile and garments industries in Bangladesh, Green Project WST Limited signed an agreement with PEAR Carbon Offset Initiative Ltd. in the city recently. By this agreement, both parties have agreed that PEAR will provide assistance in preparing Project Design Document and later they will purchase the CERs (Certified Emission Reduction), says a press release. Green Project WST, a social business of William Engel Holding Limited, has its aim to reduce emission of C02 and to mitigate the effect of climate change by saving water, electricity and steam in the textile dyeing industries. Green Project WST is the worlds first CME (coordinating and managing entity) of CDM (Clean Development Mechanism) project which focuses on working in the tex- tile wet processing. Its first CPA-1, Grameen Knitwear Limited, has finished validation and is in the process of registration of the project by CDM executive Board. After this registration, Green Project WST targets to add 20 more factories as CPAs within this year. Green Project WST will provide all the technical and logistical supports to all CPAs by their water saving tech- nology which covers from fibers to ready-made garments. PEAR, Green Project WST to Work in Textile Sector Pet robangl a has suggested the govern- ment for signing the model production sharing contract (PSC)-2012 to explore oil and gas in shallow sea (SS) block no-11 under the joint venture initiative of Santos and KrisEnergy Limited. Perobangla Chairman Prof Hussian Monsur recently for- warded a recommendation to the Energy and Mineral Resources Division secretary. Earlier, the government received poor response from the international oil companies (IOCs) to its re-tender offer for six shallow onshore blocks as only Santos-Kris Energy sub- mitted a bid for a single block in the Bay of Bengal on the last date of submission of documents on July 29, 2013. Petrobangla Chairman previously said the neighboring India and Myanmar gave more facilities to explore oil and gas in the offshore blocks. So they became more interest- ed to do business there, he said. A total of six shallow water blocks were placed for bidding in the re-render due to poor response to last years tender invitation. Oil, Gas Exploration in SS-11 in The Bay Residents of Bhola town finally got piped gas connections for domes- tic use, nearly 18 years after a gas field was discovered there. Ruling Awami League Presidium Member and MP Tofail Ahmed and Petrobangla Chairman Hossain Mansur inaugurated the gas supply by connecting the city's orphanage and the Dargah of Jainpuri Peer. Marking the occasion, Prime Minister Sheikh Hasina through cell phone told the local people that Awami League has fulfilled its electoral pledge through providing gas connection to Bhola. Speaking on the occasion, Tofail, on behalf of the local people, thanked the Prime Minister and expressed hope that the southern district would turn into an industrially- developed area in the near future by utilising the gas. The Petrobangla chairman said so far, 20 kilometres of gas distribution line have already been set up in Bhola munic- ipal area while another 50 km of gas distribution line will be established. The field was opened in 1995 and started supplying gas to Bhola's 34.5 megawatt rental power plant in 2008. However, the residents did not get gas for house- hold use. The government in 2010 formed the Sundarban Gas Distribution Company and gave it the responsibility to supply gas for domestic use. Bhola Gets Piped Gas 7 SNAPSHOT The authorities proposed two options for extending the tenures of rental and quick- rental power projectsone is no electricity, no payment, and another revision of tariffs. We have proposed the two separate options to the spon- sors of the five rental and quick-rental power producers, said an official of the Power Division, who attended a negotiation meeting with the sponsors of five rental and quick-rental power projects. Though the power sponsors strongly opposed the options, they agreed to submit their proposals, the official informed. Power Division will receive feedback regarding the options from the private power producers within the next two weeks, Power Division officials informed. No Power, No Payment Government is now working to produce 1000mmcfd of addi- tional gas with joint effort of the local and international firms by the year 2015, raising the fossil fuel production to 3300mmcfd, Energy Division officials said. But the gas supply gap would rise to 700mmcfd by then, they said. Petrobangla has a target to raise 45 percent gas production from the state-owned gas fields in 2015 while the rest 55 percent gas production would be raised from the fields operated by international oil companies. Petrobangla would disclose its next gas production plan at a seminar recently in observance of the National Energy Day. The government will sign deals on three shallow blocks with US companies ConocoPhillips and Indian company ONGC next month. The government is now facing huge trouble due to gas supply shortage as Petrobangla failed to import 500mmcfd of LNG. It also failed to implement series of gas field drilling projects in time. Govt to Produce Extra 1000mmcfd Gas by 2015 Titas Gas Transmission and D i s t r i b u t i o n Company Ltd (TGT- DCL) has identified 26,950 feet illegal gas pipelines of one-inch, two-inch and three-inch radius in the city's Mohammadpur, Hazaribagh, Rayerbazar, New Market and Kamrangirchar areas. General diaries (GDs) were filed in this connection at the police stations concerned and necessary steps are being taken to remove these illegal gas pipelines, said a press release. The TGTDCL team recently removed 2,000 feet gas pipelines of two-inch radius illegally set at Amulia and Mendipur of Demra in association with local representa- tives. TGTDCL got complaints of 46 illegal gas distribution pipelines in Chandra area of Gazipur district. Among these, 95 feet pipelines of one-inch radius and 220 feet ones of two-inch radius were removed after visits to nine areas and GDs were filed over six complaints. The TGTDCL release said taking new gas connections from the existing gas distribution pipelines is an illegal and punishable crime as per the Bangladesh Gas Act 2010. The company requested people to refrain from doing these sorts of illegal activities. 26,950 Feet Illegal Gas Pipelines Identified The National Committee for Safeguarding Oil, Gas, Mineral Resources, Power and Ports observed the Phulbari Day in Dinajpur district recently. Various programme including commemorative meeting, hoisting of black flags, and wearing black badges have been taken marking the day. The committee held the com- memorative meeting at Nimtala Crossing in Phulbariupazila. National committee convener Sheikh MuhamadShaheedullah, member secretary Anu Muhammad and central leaders of left leaning political parties took part in the program. Phulbari Day Observed Bangladesh and Malaysia will sign a deal to set up a 1320MW joint venture coal-fired power plant on equal share basis at Moheshkhali Island in Coxs Bazar district here, an official said. The two countries reached a mutual understanding and ministry of law has given consent on setting up the coal- fired power plant. The Bangladesh Power Development Board (BPDB) and the TenagaNasionalBerhad (TNB) and PowertakNasionalBerhad (PNB), Malaysia will sign the Memorandum of Understanding (MoU). Finance Minister AMA Muhith, Prime Ministers Power and Energy Adviser DrTawfiq-e-ElahiChowdhury, State Minister for Power and Energy MuhammedEnamulHuq and concerned senior officials are expected to attend the signing function. The Power Division in an official order signed by deputy secretary MdFarukuzzaman directed concerned officials to take necessary preparations on signing the MoU between Bangladesh and Malaysia. The Malaysian government is interested in injecting its proposed Padma Multipurpose Bridge investment to the power project as the government has decided to construct the bridge by using its own fund, concerned official sources said. Dhaka-KL Deal on 1320MW Plant 9 COVER P etrobangla is working on signing pro- duction sharing contract (PSC) during March-April period next year to explore hydrocarbon in the deep offshore Bangladesh. It is expected that bids from the intended companies, who already procured the bid documents, would be invited by this month. The bid winners would operate in the deep sea under the amended PSC 2012. The bid- ders would be given shortest possible time to submit the bids. Petrobangla is considering the deadline to be sometime in November. The Cabinet on September 3 amended the PSC with changes, including increased price for the gas to be produced from the deep sea. However, there is apprehension over the chances of getting bid response at the fag end of the present government. As did in past on several occasions, civil society group OGPC said the amendment went against the interest Mollah Amzad Hossain of the country and demanded to cancel it. P e t r o b a n g l a , h o w e v e r , instructed the authorities to set increased price for the gas before approving the amendment to the MPSC 2012. But policymakers were against increasing the price. Experts, however, sug- gested that the IOCs would not take part in the bids at the gas price declared in the MPSC 2012. After inviting tenders, 19 IOCs pur- chased the bid documents and in the pre-bid meeting they viewed that the offers, including the gas price, are not realistic. They made it clear that they would not submit the bids unless the changes are made. Under the circumstances, the authori- ties extended the bid submission dead- line and, at the same time, suspended the process of deep offshore bid. Earlier, US company ConocoPhillips signed a PSC for deep sea blocks DS10 and DS11 in accordance with PSC 2008 that offers a price of US$4.5 per thousand cubic feet plus corporate tax. In the MPSC 2012, changes brought in issues included the ceiling price of gas and pre- vention of gas exports. Under this PSC, ConocoPhillips and ONGC of India submitted tenders for shal- low blocks, fol- lowed by Santos and KrisEnergy Joint venture. After evaluation, the authorities initialed PSC with ConocoPhillips on September 2 for exploration of block SS 7. ONGC was also scheduled to initial the PSC for block SS 4 and SS 9 on September 5, but they could not sign it. Petrobangla is expecting that the PSC would be possible to initial in the second half of this month. The proposal by the joint venture of Santos and KrisEnergy has been sent to the energy ministry after evaluation by Petrobangla, which is expecting that the proposal would be approved by the middle of this month and the PSC would be possible to be initialed by this month. The deadline for submitting offshore bids, invited on December 17 last, was March 18. But at the pre-bid meeting, the companies informed that the h y d r o c a r b o n exploration in the deep sea has now become much expensive, mak- ing it difficult for the companies to submit the bids under the pack- age offered through the MPSC 2012. Energy expert Dr Ijaz Hossain at that time had told the Energy & Power that it would not be possible for the companies to explore hydrocarbon in the deep off- shore at this price. Special assistant to the chief adviser of the last caretaker government Dr Tamim said the the PSC should be amended in accor- dance with other countries in the region if we have to bring the IOCs in to explore deep offshore. Petrobangla was convinced with the arguments, but failed to make the pol- icymakers understand the reasons. They, however, suspended the bid sub- mission deadline and Petrobangla sent a proposal to amend the MPSC 2012. The main issues of the amendment to the MPSC 2012 are gas price increased to $6.5 per thousand cubic feet from $5.5 with a provision to increase the price by 2% since commis- sioning of pro- duction. The IOCs will not have to pay the corporate tax while annual cost recovery rate increased to 70% from 55% and they have been allowed to sell 50% share gas directly to 11 third party within the country. The companies will not have to pay wheeling charge for gas from offshore to onshore through the pipeline to be constructed under the cost recovery arrangement. I hope well now get desired response for deep offshore blocks from the IOCs, Petrobangla Chairman Dr Hossain Mansur told the Energy & Power. He said the PSC is now competitive as compared to other countries in the region and the world. He said: We do not have the scope to invest in this type of risky job other than the IOCs. Following the approval to the amend- ment by the Cabinet, Finance Minister AMA Muhith told journalists that there is no alternative to massive exploration to ensure the countrys energy security. And we do not have the financial and technological capacity to explore deep sea, prompting us to amend the MPSC 2012 in consistent with the other countries of the region. Bay of Bengal & Oil, Gas Exploration Bangladesh is the first country in this region to start exploration of hydro- carbon in the Bay of Bengal. Bangabandhu first formulated the PSC in consistent with Indonesia to explore hydrocarbon in the Bay con- sidering the consequence of volatile oil market in 1970 and then Petrobangla invited bids for the first time. Six IOCs signed PSCs for six blocks, but they got back within few years as they did not get oil. However, Bangladesh got some data on the situation of oil and gas in the Bay for the first time. After that it was 1994 when Cairn started working in two blocks under a PSC and discov- ered the Sangu gas field. Two more PSCs were signed for two blocks in 1998, but there was no success. According to Petrobangla, there is only two success from 20 exploratory wells drilled in the Bay. Under the PSC 2008, ConocoPhillips conducted 12 seismic survey in the blocks DS10 and DS11. They started conduct- ing new survey for getting more i n f o r m a t i o n before drilling wells. A seismic survey was conducted before the mar- itime boundary cases, but the information kept with Petrobangla cannot be revealed as the case with India remains to be set- tled. As a result, P e t r o b a n g l a could not provide information that could attract IOCs to bid for the deep offshore blocks. It was in 2004 when the then govern- ment had initiated non-speculative seismic survey as it started working on offshore bidding. But it could not be done due to lack of approval by the high-ups of the government as they decided to go for the bidding directly and taken initiative to finalize the PSC document. Later the caretaker govern- ment finalized the PSC in 2008 and invited bids, which received a good response but only two proposals by ConocoPhillips have been approved. The present government signed PSCs in 2011 with the US company in light of the PSC 2008. Based on the PSC 2008, the MPSC 2012 was formulated with bringing some changes including raising the gas price and restricting conditional gas export. Both the PSC had a common provision that the IOCs will pay the corporate tax. However, the latest amend- ment to the PSC 2012 increased the deep offshore gas price to US$6.5 per thou- sand cubic feet from $4.5 in 2008 PSC and $5.5 in MPSC 2012. Nobody will come to work here with a PSC that is different from other coun- tries, Petrobangla Director (PSC) Imad Uddin told the Energy & Power, explaining the need for the latest amendment to the MPSC 2012. He said the MPSC 2012 had offered $5.5 plus corporate tax for per thousand cubic feet of the deep sea gas, which is $7-$8 in South and East Asia, $7.2 plus a tax rebate in Myanmar and $7 in Sri Lanka, Thailand, Indonesia, Malaysia and India. Recently, India increased the gas price to $8 per MCF. Considering the market situation, we did not have any alternative to make the bidding package attractive, he said, arguing that a better price should have been offered. What we did instead we tried to make the package attractive with a facility to increase the gas price by 2% every year. We hope well get response as per the new pack- age. Former Director of Petrobangla Maqbul-E-Elahi said if the govern- ment thought right, it could have increased the price of gas commens ur at e with the level of other countries. But, it has not been appropriate to exempt from the corporate tax and make a pro- vision for increas- ing gas price by 2% every year. Prof M Tamim, however, said the price this time taken to a rational level and it would be cheaper to get gas as com- pared to LNG or importing gas through pipeline. But Prof Anu Muhammed, convenor of civil society activist group OGPC, said the PSC goes against the interest of the country and should be scrapped. He, however, did not make any economic analysis or present any study that explains why the PSC is against the interest of the country. Petrobangla sources said the IOCs which already procured request for proposal for the deep sea blocks would be notified about the amend- ment by the third week of this month and invite them to submit bids within 3-4 weeks. Petrobangla is expecting to get the bids by November so it can complete the bid evaluation by the end of this year. The target is to sign the PSCs for dispute- free three deep offshore blocks by March next year and start working in the win- ter. EP 13 B angladesh is located to the south of the Himalayan Orogenic belt, wholly within the Bengal Basin, which is the largest delta basin in the world. The potential of oil and gas has already been proved through the dis- covery of 25 gas fields including oil, discovered in two gas fields for which 82 exploration wells were drilled over a period of 100 years of exploration activities. In spite of slow exploration activity, the combined success ratio is 3.3:1 which is very good but if we con- sider only for offshore, the success ratio is 10:1, which is not a sign of good suc- cess ratio. Till now, a total of 20 explo- ration wells have been drilled in the shallow offshore, out of which, discov- eries of two gas fields were made, these being Sangu and Kutubdia. Sangu was treated as a commercial discovery whereas Kutubdia as a contingent resource. Currently a number of International Oil Companies_(IOCs) are working in Bangladesh -- both offshore and onshore. The IOCs are Chevron, Santos, ConocoPhillips and Tullow. Though the present government is try- ing to accelerate explo- ration activities under PSCs for shallow and deep offshore,_ there has been no remarkable progress made so far. One of the reasons for this is the lack of adequate information provided for bidding rounds. Some reputed IOCs expressed interests to the Bangladesh government during the year 2000, 2002, 2006 and 2013 to conduct speculative seis- mic surveys (otherwise known as MultiClient surveys) prior to the bidding round for offshore oil and gas exploration. In mid 2005, Petrobangla took the ini- tiative for carrying out multi-client speculative geophysical survey in 1,06,500 square kilometer area in the Bay of Bengal but unfortunately it didn`t receive cabinet approval for floating a tender at that time. The main purpose was to carry out speculative geophysical survey by foreign compa- ny to upgrade the available data on hydrocarbons potential in the offshore Bangladesh and to attract IOCs. Necessity of Speculative Survey Data Upstream companies will use the spec- ulative survey data as a reliable tool by which they can understand the region- al geology of the Bay of Bengal. By working with these data, IOCs can undertake geological evaluations of blocks to be offered in the bid rounds. If we encourage the acquisition of speculative seismic surveys through reputed geophysical companies, then we will gain knowledge of potential hydrocarbon leads and prospects in the offshore Bangladesh area as well as whether there is a presence of any structure(s) for trapping of oil and gas or not, the likely availability of hydrocar- bon resources, potential size of the trap, distribution of such traps, exis- tence of cap rock and four way closure which are very important for the bidder as well as for us. Because if we know our prospects, that will certainly help us to formulate fiscal terms for bidding round and for long term planning. Such data will make the decision for bidders to invest in Bangladesh far eas- ier. It should be remembered that Bangladesh is competing with many other countries and investment deci- sions will be based on fiscal terms, prospectivity and a detailed knowledge of the area -- the latter being provided primarily through the availability of seismic data. A lack of knowledge will either lead to a company not bidding, or bidding a less aggressive work pro- gram with more reasonable terms. However Petrobangla went for bidding rounds in 2008, 2012 and 2013 with- out any prior survey and ended the process with a low response. Thus, it is not wise for the government to invite the international compa- nies to bid without having adequate seismic data. It is suggested to take prop- er initiative to conduct multi-client speculative geophysical survey prior to next round bidding process. It is very neces- sary that oil and gas exploration activity in the shallow and deep off- shore should be acceler- ated under PSC. It is expecting that there is a good prospect in the deep offshore. Mortuza Ahmad Faruque 15 COVER ARTI CLE Vessel used for Multi-Client survey Benefits of Multi-client Survey There are some key benefits for all stakeholders in having modern multi- client speculative data available. Some of these are as follows: An increase in oil companies inter- est, attracting new entrants, and gener- ating more geological ideas and prospects. Greater data availability results in more competitive acreage bidding rounds and generally results in more aggressive bids and exploration activi- ty. As multi-client surveys are not restricted to individual blocks, they provide a regional framework allowing the exploration geologist to work from the bigger picture and gain an under- standing of potential source rocks, reservoir distribution and migration pathways. The existence of data will result in a shorter exploration to production cycle. Survey data will provide a better understanding of the Bengal Fan including basin thickness and its geom- etry, development of different facies, sediment provinces and also on the reservoirs, presence of source rocks etc. Geoscientists shall gain a better understanding of resource potential about our offshore areas, which will lead to formulate better fiscal terms. Aspects of Multi-client Survey Prior to the advent of the multi-client investment model, host governments usually invest their own capital in acquiring a geological/geophysical database to encourage investment by IOCs. These days, necessity to invest public money is substantially obviated. Some of the aspects of multi-client speculative survey are as follows; Usually instigated by interested seis- mic contractor and survey cost borne by them, financial risk both cost and revenue borne solely by seismic con- tractor and large volume of data can be acquired quickly. The availability of multi-client data allows oil companies to quickly move onto the first phase of their exploration, thus being able to move faster into the drilling and production phases. The earlier production phase brings earlier benefit to the country. If data is available ahead of bidding rounds, the greater knowledge allows for more aggressive bidding by the IOCs. This may result in higher signa- ture bonuses as well as more aggressive work programs. IOCs generally work within their own acreage only and have problems understanding regional geology. Multi- client surveys can span multiple blocks and even cross national borders, thus providing all oil companies the oppor- tunity to study the regional geological setting. The greater understanding will provide a better chance of successful exploration. Under many multi-client agree- ments, there are opportunities of train- ing for the Regulators personnel both onboard the seismic vessel and during processing & interpretation of the data, so in the Bangladesh context this pro- vides a good opportunity for Petrobangla personnel. Multi-client survey data is typically marketed by the license holder at numerous international oil and gas conferences around the world through which more bidders usually participate in the bidding round, and this comple- ments the marketing efforts of the host government. Questions may arise Are there any negatives in allowing seismic compa- nies to invest their own risk capital in acquiring multi-client surveys at no cost to our country? And if we cant come up with any negatives, then why are we missing out on all the positives? Offshore Exploration Capability of BAPEX Our national oil and gas exploration and production company, BAPEX has deep constraints of technical and finan- cial capabilities to carry out explo- ration activity in the offshore area. All offshore wells drilled so far are by IOCs. Our country needs to explore hydrocarbon in the offshore areas. No offshore wells have been drilled so far in the deep marine environment. IOC's with their expertise and capital base are needed to carry out such a task in our country. Besides, we need to build up BAPEX capability to work in the off- shore, for which proper attention needs to be taken by the government to build up its capability, to facilitate scope and to engage BAPEX personnel to work with IOC(s) through forming Joint Venture Agreements or Joint Operating Company with national or reputed pri- vate oil company by which active par- ticipation in the offshore survey and drilling can be ensured and their off- shore capability can be developed. A separate incentive package should be considered for BAPEX personnel but unfortunately, it was lying with the gov- ernment more than two years for their kind consideration as a frozen food and nicely kept in the refrigerator. Mortuza Ahmad Faruque; Former Managing Director of BAPEX EP 16 N atural gas as mono fuel played the pioneering role for Bangladesh energy security for several years. It provided the energy supply backbone for maintaining steady economic development for the last several years. Relatively cheaper and subsidized gas to urea fertilizer production greatly assisted in attaining food self-reliance. Cheaper gas supply also provided for the cost of gas based power generation cheaper. Cheap gas & power as well as easy availability of cheap labor created revolution in the industrial development. Bangladesh could maintain a healthy competitive edge over contenders in export market for RMG, textile, ceram- ic, pharmaceutical and other export commodities. All these mainly con- tributed in achieving and maintaining commendable steady GDP Growth rate. It also kept Bangladesh economy insulated from global and regional eco- nomic meltdown. But lack of perspective planning for exploration and exploitation of resources, lack of required actions for developing economic pricing of gas and energy, absence of workable gas system master plan, absence of gas resources depletion and utilization pol- icy triggered crisis over gas value chain. Unplanned expansion of gas market caused mushrooming of gas consuming energy inefficient industries in one hand and rapid depletion of proven gas resources on the other. Poor gas pricing failed to create necessary funds for gas companies for reinvesting in exploration of resources and devel- opment of gas transmission and distri- bution infrastructures. Consequently, the excessive reliance on borrowed money from development partners and government incapacitated domestic gas companies in reinvesting in explo- ration and development resources. The technical and managerial capacity of gas companies and Petrobangla also eroded from massive uncontrolled brain drain of gas sector professionals mostly going abroad. Bangladesh had to introduce Foreign Direct Investment [Engagement of IOCs through PSCs] in exploration and development in gas resources in onshore frontiers and off shore. Even in that area Bangladesh lacked required competence in managing and monitor- ing IOC operations. In a matter of a decade or so Bangladesh dependence on IOC operated gas fields rose from 15 % to over 50%. Bangladesh failing to upward adjust its gas price at con- sumer level in a rational way and requirement of buying IOC share of PSC gas at international price caused negative balance of payments for Petrobangla owned gas companies. The uncontrolled growth of gas using industries and failure of planned diver- sification of fuel mix created uncertain- ty in security of supply in the national gas grid. Bangladesh now struggles with a pro- duction capacity of about 2240 MMCFD against a cumulative demand of 2800 MMCFD + and a depleting ultimate recoverable reserve of gas believed to be barely enough for a decade or so. More than any time before Bangladesh requires top priority attention for an appropriate utilization strategy for its remaining recoverable gas. How should Bangladesh continue to use the remaining gas reserve resource? What should be the pricing structure? How can it control the uneconomic use and illegal use of gas? These must be the strategic areas Bangladesh gas sector policy makers address without any delay. How Much Gas Resources We Have? What is Our R/P Ratio? Bangladesh has finite gas reserve -- resource. The days of striking gas at every third exploration is way past. Whether we have 10 or 15 Tcf Ultimate Recoverable Reserve we cannot let it deplete irrationally. While we must expedite our exploration campaign in onshore frontier areas and vast poten- tial offshore through BAPEX efforts and engaging competent IOCs through Win-Win PSCs we must also rational- ize gas utilization ensuring proper value addition of the depleting resource. We must be very pragmatic in diversifying fuel mix. Actual gas reserve resource was a pop- ular debate in late 1990s and early 2000s when UNOCAL after discovery of Bibiyana was pressing for exporting part of the discovered resource of Bibiyana Gas Field through pipeline to India? Whether or not it was a smart decision by Bangladesh not to accede to export decision is not the intention of this write up. But one thing for sure that market signal mattered a great deal in required exploration of new resources in frontier areas. After Bibiyana Bangladesh has not discov- ered a major gas field till now. Srikail and Sundalpur discoveries are margin- al at best and cannot be relied upon for a long-term supply security. BAPEX acquiring 3D seismic survey capability has mapped some new resources but there is still no guarantee that the base of proven gas reserve has expanded significantly. We need to prove addi- tional gas resources in already discov- ered fields through further appraisal cum development works. Even at the present rate of gas production 2240 Comprehensive Strategy for Gas Value Chain Engr. Khondkar Abdus Saleque 17 SPECI AL ARTI CLE MMCFD the proven reserve may com- pletely run out in about a decade. A responsible person like the State Minister of Power and Energy told Parliament of increasing gas produc- tion by 1100 MMCFD within a year. Wherefrom such additional gas will be produced? Which gas field can sustain higher rate of flow consistently over longer time? Chevron operated Bibiyana gas field now produces @ 850 MMCFD. There is a plan to add about 300 MMCFD more soon. How Petrobangla is assured that even Bibiyana would sustain that flow for a considerable time? The largest of the fields Titas production may increase by about 150-180 MMCFD. But with the massive leakage problem not addressed technically till now uncon- trolled higher rate of production from this gas field also may not be sustain- able. Most of the other fields are on the verge of depletion and cannot be can- didates for mentionable additional pro- duction. We suggest carrying out extensive reservoir study by accredited Reservoir Engineering Company and adopting an appropriate depletion strategy bringing in secondary and ter- tiary recovery into play. The present strategy of unprofessional gas extrac- tion from Petrobangla and IOC operat- ed fields must change. None but the gas reservoir professionals only should talk about reserve resource and exploitation strategy. Gas Production Scenario From Petrobangla Daily Report of 6-7 July states, of 2240 MMCFD gas pro- duction from 84 wells of 21 producing fields. Of these three Petrobangla owned Companies BGFCL, SGFL and BAPEX from 58 wells of 15 gas fields produced 1002 MMCFD while 4 IOCs Chevron, Santos, NIKO and Tullow from 26 wells of 6 fields produced 1237 MMCFD against a Petrobangla stated capacity of 1169 MMCFD (?). Sangu of Santos producing only 4.3 MMCFD on the day is surviving at ICU, Feni of Niko is not producing and Chevron from 20 wells of three fields produced 1138 MMCFD against Petrobangla stated capacity of 1160 MMCFD. Is there any reservoir engi- neering concern of higher rate of pro- duction from Chevron operated fields? Pricing of Gas When we compare gas and power tar- iff with even regional countries Bangladesh price is among the lowest. It was possible for a long time to sur- vive with very low gas price from a very smart action of Bangabandhu inspired Bangladesh government after 1972. Six major gas fields Titas , Habiganj, Rashidpur, Bakhrabad, Koilahtilla and Feni owned and oper- ated by Shell BV could be taken over by a throw away price of 4.5 Million Pounds Sterling in 1974. Readers these 6 gas fields are the backbone of Bangladesh gas sector. Imagine if Bangabandhu did not have the far sight of getting these at a cheap bar- gain what could be our gas security now? ADB, WB, CIDA subsequently gave soft lending support for develop- ment of production, transmission and distribution infrastructures. Cheap gas and soft loan using gas infrastructure development kept gas price to con- sumers well below economic pricing level. While it was a blessing to the extent that cheaper production of power helped supporting rapid indus- trial growth, the mushrooming of energy inefficient small, medium and large industries in the transmission -- distribution infrastructure congested gas franchise areas created demand supply imbalance. Gas marketing com- panies also failed to effectively control system loss [theft, pilferage and illegal use of gas]. All these contributed to serious gas crisis making energy securi- ty unsustainable. In this scenario gov- ernment achievement of adding over 500 MMCFD + new gas went unno- ticed. Government also embarked on adjusting gas price in phases to differ- ent category of consumers. If this could be done earlier it could have double benefits by this time. Users would have been forced to use gas efficient tech- nology and marketing companies could earn the right price of the com- modity. BERC authorized to set prices for different category of consumers must act proactively through transpar- ent manner. The remaining gas reserve must be utilized in the best economic way through value additions and at economic price only. Gas is a com- modity and must be used as such. We suggest conducting a professional eco- nomic gas pricing strategy and adjust- ment of pricing over several smaller rational steps by BERC. Gas Utilization Scenario The above table 2 speaks of itself. One 18 wonders as to why after adding over 500 MMCFD additional gas over the last 4.5 years and keeping new gas connections suspended why there remains huge deficit? Policy makers and Petrobangla are now acknowledging of huge illegal and unauthorized gas connections and uncontrollable gas theft and pilfer- age in industrial, domestic and commercial sector. Can we let our precious gas resource get wasted and depleted like this? What are the remedies? Who are to be made accountable for these? We have 5 gas distribution companies with managing directors, general man- agers, senior officials. We have a very heavy headed Petrobangla; we have Energy Division in MOEMR. All company board of directors have representation from the Ministry, Petrobangla, and some of PMO. Still gas theft goes on unabat- ed. Who to account for resources plundering? There is a gas act. We must imple- ment it without fear or favor for any quarter. Milestone achievement of the present government is wasting unno- ticed for the abysmal performance of Petrobangla companies in gas market- ing segment. Gas Utilization Strategy We must now adopt a rational gas uti- lization strategy. What are our priority sectors? In order of preference we sug- gest -- fertilizer, industrial [CNG to be considered as an industry sector], power, domestic & commercial. Fertilizer: Bangladesh has to supply gas if required at subsidized price to urea fertilizer plants. But we must make economic use of gas. Plants like PUFF, NGFF, and UFFG have become fuel inefficient. These should be replaced with modern plants. Chittagong area may need access to gas from Myanmar or LNG import at a reasonable distant future for meeting the gas crisis. But for the time being Bakhrabad-Chittagong Gas Transmission Loop line must be built on top priority basis. Industrial Sector: Gas to industrial sec- tor must get second priority and of them export oriented industries must get priority attention. But gas use in industries must come under serious scrutiny. Availing cheaper gas and exploiting dishonest nature of gas mar- keting companies huge volume of gas in Industrial sector is either pilfered or wasted. A high level techno-economic committee must review gas price to industrial consumers and also check improved pilfer proof metering sys- tems. Vigilance teams must step up their efforts and works of vigilance teams must also be monitored. Gas for CNG: A noble effort of CNG nosedived for poor planning and mis- management. Introduction of CNG sig- nificantly improved ambient air quality of Dhaka and major cities. But it creat- ed mushrooming of CNG stations and conversion workshops. Only public sector vehicles and mass transports like Articulated NGVs should have come under CNG. Three-wheelers and small private transports should never have been converted to CNGs as these acted as double edged swords. These created huge gridlocks and also added to huge gas deficits. We must phase out CNG using small vehicles and gradually minimize CNG conversion workshops. NGV rapid transports [Articulated Buses] and public sector vehicles must continue to get gas sup- ply for CNG. Gas price to CNG must be economically adjusted and CNG price must be indexed as 75% of alter- nate fuel. All kinds of CNG use other than automobiles and irrigation must come to a full stop now. Gas to Domestic & Commercial Consumers We recommend pipe line gas supply to these two sectors should be gradually replaced in a planned manner with LPG and coal. People of North-western and Southern region may get pipeline supply say for 5 years as these areas are being penetrated now. But by 2018 all domestic and commercial con- sumers must be converted to LPG. For this government has to create required incentives for LPG sector. There must be regulatory control of LPG pricing and distribution. Government must also expedite exploration of coal. People in the Northern and Southern 19 region can use domestic coal once Phulbari and Barapukuria start eco- nomic production at capacity. Gas to Power With so many alternatives fuel supply options we must not continue to burn depleting gas resources for power gen- eration. Even Power Sector Master Plan dictates using coal on priority basis for power generation. We have enough high quality coal resources to let 50% of the power generation by 2030 and 30% by 2021 to rely on domestic coal. Side by side wherever feasible we can develop coal import infrastructure and LNG import infrastructures for long term reliance on imported fuel. Own gas supply to power generation must be restricted. With 900 MMCFD gas supply it is very much possible to gen- erate 6000 MW power if fuel efficient Combined Cycle plants replaces most of our aged dilapidated power plants. No new power plants other than those are implementation should be gas based till we have assured future sup- ply from new offshore discoveries and import. Gas supply to all captive power generation plants must be stopped with a years notice. There is no logic of supplying gas for captive power generation. Conclusion Nation got a rude shock from produc- tion glitch of Bibiyana Gas Field for less than a day in the recent past. At least the situation could be retrieved with some panic. But the way we are trying to exploit our depleting gas resources now, we may embrace demise our own gas resources in not too distant future unless we plan the appropriate strategy. Government poli- cy makers and planners must sit for extensive home works and utilize the line professionals and experts in mak- ing the appropriate and workable strat- egy for own gas utilization and prepare implementable roadmap. Engr. Khondkar Abdus Saleque; Advisor, Ministry of Mines, Afghanistan 20 EP S olar module installations enjoyed a significant increase from approximately 1.4 GW in 2006 to 29 GW in 2011, but the industry has started to move away from the initial spur, according to research and consulting firm GlobalData. The companys latest report states that the growth of the solar PV mod- ule installation market in 2012 was m u c h l o w e r w h e n c o m - pared to the previ- ous year, with only 3 0 . 2 5 G W installed. In 2013, i nst al l a- tions are f or ecas t to fall slightly to 25.4 GW, due to reduced government support in sev- eral countries, such as Spain, Italy and Germany. From 2014 onward, annual additions are expected to remain stable until 2020. Germany was the largest consumer of solar modules in 2012, with annu- al installations of 7.6 GW, followed by China with 5 GW. China contin- ued to be the largest manufacturer of solar modules in the world, boasting 66% of the total global module pro- duction in 2012. Harsha Nagatham, GlobalDatas Analyst covering Alternative Energy, says: With domestically available polysilicon, a favourable regulatory environment and an easily available inexpensive labor force, companies such as Yingli Green Energy, Trina Solar, LDK Solar and Jinko Solar have been leading solar module manufacturing with annual produc- tion capacities of over 1,000 MW each. According to the report, solar PV mo d u l e p r i c e s have also dr opped drastical- ly since 2 0 0 6 , when the a v e r a g e price was $3. 8/ W. In 2012, the price of a mod- ule was $0.91/W, and it is expected to fall further over the coming years, reaching $0.25/W in 2020. Solar PV is the third-largest deployed renewable technology in terms of installed capacity after hydro and wind. Emerging countries in the regions of Asia-Pacific, Latin America, the Middle East and Africa are expected to be the major markets in the future due to an increasing focus on green energy to help fuel economic growth, concludes Nagatham. Global Solar PV Module Installations to Face Stable Increase by 2020 EP Desk REPORT EP 21 REPORT B angladesh will seek further assis- tance from Russia to develop the country's power and energy sector as a high-powered team left Dhaka Sunday for Moscow to seek technical and funding cooperation, a top official said. "We will seek both technical and fund- ing assistance from Russia during a scheduled meeting to be held in Moscow this week," Economic Relations Division (ERD) Secretary Abul Kalam Azad said before departing for Moscow. He said the Bangladeshi team will dis- cuss issues of bilateral interest with the top government officials and top offi- cials of state-owned Gazprom during the meeting. An official said the country is eyeing assistance of US$2.0 billion at less than 2.0 per cent interest rate from Russia to carry out several onshore gas sector development projects to augment the overall supply to meet the mounting natural gas demand. The country will be seeking the Russian fund for drilling a total of 41 wells which include 13 development wells, 8 appraisal wells, 13 work-over wells and 7 exploratory wells in the Titas, Bakhrabad, Kamta, Bhola, Haripur, Koilashtila, Biani Bazar, Chittagong and Rashidpur gas fields, said the official. The country also expects to set up 14 natural gas processing plants in these gas fields. Bangladesh to Seek $2.0b Russian Loan For Gas Projects A lthough it had earlier given envi- ronmental clearance to set up the proposed Rampal Power Plant near the world heritage Sundarbans, the Department of Environment (DoE) now has tagged over 50 conditions for implementing the thermal power plant project in the awake of widespread criticism. The DoE has already put forward the conditions to the project director of the Khulna 1320 MW Coal Based Thermal Power Plant Project (Bangladesh Power Development Board) and other authorities concerned to follow the conditions, said officials at the DoE. Violation of any of the conditions and any injunction on this project from the higher court will render the environ- mental clearance void. According to the conditions, the pro- posed Khulna 1320 MW Coal Based Thermal Power Plant Project cannot release any pollutant because of its activities that can affect human health or will have damaging impact on the environment or natural resources. Proper and adequate mitigation meas- ures must be ensured throughout preparation, construction and opera- tion period of the power project. Any heritage site, ecologically critical area, and other environmentally, religious and archaeologically sensitive places must be kept protected during the proj- ect construction phase. In order to control noise pollution, vehicle and equipment shall undergo regular maintenance and locating machinery close to sensitive receptor shall be avoided. Proper and adequate onside precautionary measures must be ensured so that no habit of flora and fauna is endangered or destructed. As per the conditions, the power plant authorities must deign an enclosed conveyor system to address the entire coal handling system and there should be an integrated dust control system with dust extraction and bag filters at uploading areas and each transfer point on the conveyor system. DoE Tags 50 Conditions For Rampal Power Plant EP EP D haka has decided to approve a technical report on allowing India to lay power transmission line its two north-eastern provinces to Pashchim Bangla through Bangladesh in exchange for some of the power. The transmission line will transport hydro-electricity produced in Indias Arunachal province to Pashchim Bangla and in exchange, Bangladesh wants a share on the electricity at the Barapukuria substation, officials said. The prime ministers energy adviser Tawfiq-E-ElahiChowdhury at a recent meeting asked power division officials to approve a report prepared by a joint- technical team, which includes six power officials of Bangladesh and India, said an official. Dhaka Opens Power Corridor to New Delhi B arapukuria Coal Mine Company Limited (BCMCL) has sought five percent surcharge from the Bangladesh Power Development Board (BPDB) if the board fails to pay coal prices within the next three months. The Energy and Mineral Resources Division (EMRD) recently sent a propos- al to the Prime Ministers Office to include the provision of paying sur- charge in the proposed coal marketing policy. The BCMCL is selling 3000-4000 tonnes of coal to the BPDB daily for coal-fired power plant at Barapukuria, a Petrobangla director said. We, so far, have sold coal worth Tk 20 million to Tk 25 million to the BPDB. The BPDB is receiving five percent sur- charge from the BCMCL in case the coal producing company fails to pay elec- tricity bill in three months, he informed. We will get the surcharge as like as the BPDB charges, if the Premier approves the proposal, he said. BCMCL Seeks Surcharge on Outstanding Coal Bills EP EP 23 REPORT S tate-owned Maddhapara Granite Mining Company Ltd (MGMCL) has signed a cooperation and development contract with Germania-Trest Consortium (GTC) to boost its produc- tion. Germania-Trest is a joint venture company comprising Bangladesh- based Germania Corporation Limited and Belarus-based JSC Trest Shakhtos Petsstroy. The MGMCL is the countrys only hard rock company, which has been mining rocks from Maddhapara mine in Dinajpur district since 1998. The com- pany is a sub- sidiary of Petrobangla. MGMCL compa- ny Secretary Shah Md Rezaul Haque and Serajul Quazi of GTC signed the contract on behalf of their respective sides at a function at Sonargaon Hotel in the city. MGMCL officials said the GTC will work as a contractor to develop and operate the mine, increasing hard rock production to 5000 metric tons (mt) per day from the present the 1000 mt through upgrading its technology and also using modern machinery. The GTC will work under a contract of 6 years at a contract value of US$171.86 million. They will produce 9.2 million metric tons of hard rock during the contract period. MGMCL manag- ing director M o h a m m a d Moinuddin said that per ton of production cost will be about US$17.23. Maddhapara Mining Co, GTC Sign Deal to Boost Production B angladesh is likely to propose the Indian government to set up joint venture (JV) hydroelectric power proj- ects at Arunachal and Tripura. The government will make the propos- al as per the recommendation of a joint technical team (JTT) report formed ear- lier comprising experts of two coun- tries, an official said. The Power Division took a decision in this regard recently. There is huge prospect of producing 186,000MW of electricity from hydro- electric power plants in Indian north- western states of Arunachal Pradesh and Tripura, the official said. We have received positive response from JTT regarding import of electricity from Arunachal and Tripura through three separate points, two in Barapukuria and one in Bheramara area, an official said. The government would raise the issue during the coming secretary-level meeting between the two countries here Dhaka late of December next, he said. During the secretary-level discussion on June last, Bangladesh also raised the issue of exploring the possibility of power exchange between Bangladesh and India through interconnection between eastern side of Bangladesh and Tripura of India. Bangladesh also sought support from India on power exchange as per the initial finding of the Joint Technical Team (JTT) formed at the Indo-Bangla joint steering committee held earlier on February, 2012. Bangladesh May Propose JV Hydroelectric Project in India EP EP S tate-owned Petrobangla has sought 'advance' permission from the ener- gy ministry for seizure of the assets of Canadian Niko Resources in Bangladesh as part of compensation for two blowouts at the Niko-operated Tengratila gas field, said an official. "We sought permission from the Energy Division under the Ministry of Power, Energy and Mineral Resources to seize the Niko assets," Petrobangla Chairman Hussain Monsur told a local newspaper. The ministry, however, asked Petrobangla to wait for the court's final verdict for seizure of Niko's assets, said Monsur. He earlier said an international arbitra- tor has ruled it has no jurisdiction to hear Canadian Niko Resources' chal- lenge to a Bangladesh government demand for payment of $106 million compensation for two consecutive blowouts at the Tengratila gas field. The ruling by the International Centre for Settlement of Investment Disputes (ICSID) meant Bangladesh's domestic court system has jurisdiction in the case, the Petrobangla Chairman said. He said Washington-based ICSID in its verdict stated it had no jurisdiction over Bangladesh, meaning the case could be settled in the local court sys- tem. Petrobangla Seeks to Seize Niko's Assets EP Maddhapara Granite Mining Company 24 REPORT V iable energy storage is fast becom- ing a reality, thanks to recent proj- ects and new rulings in Japan, South Korea and the US. According to PV Magazine, the Japanese Ministry of Economy, Trade and Industry (METI) has announced the companies that will introduce large- scale storage batteries into electricity grid substations. The idea of grid storage is simple. When electricity demand is less than production, energy is stored in batteries for use when consumption increases. The system has the benefit of smooth- ing out production patterns and there- fore does not have to be scaled up or down meaning fuel based power plants can be more efficiently man- aged. Hokkaido Electric Power, Sumitomo Electric Industries and Tohoku Electric Power have been chosen to explore the Japans first attempt at large-scale stor- age. Tohoku will install what is report- ed to be the worlds biggest large-scale storage batteries (lithium-ion batteries) at the Nishi-Sendai substation. PV Magazine reported METIs goals, within the project, are to boost capaci- ty of the supply-demand adjustment function by 10 per cent in the area along with continued expansion of renewable energies in the area. Japan & US Ramp Up Energy Storage Investment W ith a subtle motion of the hand China took away the Turkmenistan Afghanistan Pakistan India (TAPI) pipeline project from USA and became recently the chief controller of gas resources in Central and South Asia. Somebody elses ideas and plans have been expropriated by means of con- tract for sale of 25 bn cu m of gas per year concluded between State Concern Turkmengas and Chinese Company CNPC. The deal will increase the total volume of Turkmen gas supplied to China up to 65 bn cu m. At the same time the agreement is achieved on the planned new direction of Turkmenistan China pipeline (D direction) for addi- tional supplies. Gas agreements enabled Xi Jinping, the General Secretary of PRC and Gurbanguly Berdimuhamedow, the President of Turkmenstan, to adopt mutual Declaration on establishment of strategic partnership relations between Turkmenistan and PRC. The Declaration was supported by the agreement between Turkmengas and State Bank of Development of China on cooperation in financing the second stage of Galkynysh gas field develop- ment, as well as by the contract between Turkmengas and CNPC on designing and construction of plant producing commercial gas in volume of 30 bn cu m annually at the gas field Galkynysh. China Takes Away TAPI Pipeline From USA EP EP I ndia's Oil and Natural Gas Corp has agreed to buy 10 percent in a gas field offshore Mozambique from Anadarko Petroleum Corp for $2.64 billion, as the explorer looks to offset diminishing sup- plies from domestic gas fields by buying overseas assets. The purchase of U.S. oil company Anadarko's stake is the latest in a hand- ful of overseas assets that ONGC Videsh, the overseas business unit of state-controlled ONGC, has bought in the last couple of years to boost India's energy needs. In June, ONGC and state-run Oil India Ltd signed a deal to buy a 10 percent stake in a Mozambique gas field from Videocon Group for $2.48 billion. "There is a lot of energy demand and whatever volumes of gas we are able to bring to the country are of utmost signif- icance," said A. K. Srinivasan, ONGC's group general manager for finance. "Mozambique will be a big LNG hub for the future." India's ONGC to Buy $2.64B Stake in Anadarko Mozambique Gas Block C hina will add some 1,500 gigawatts of power production capacity by 2030, or the equivalent of Britain's existing capacity every year, a study showed. Although the world's biggest carbon emitter will continue to draw consider- able capacity from coal-fired plants, about half of the new capacity will be generated from renewable sources. China to Add 1,500 GW of Power Capacity by 2030 25 REPORT B erlin-based subsidiary of Gazprom has signed an agreement under which it acquired the natural gas fuel- ing network from Bavarian energy sup- plier Ferngas Nordbayern (FGN) on September 1, including 12 sites in southern Germany. With this acquisition, we are expand- ing our CNG filling stations in the country and strengthening our commit- ment to the use of natural gas as envi- ronmentally-friendly motor fuel, said Vyacheslav Krupenkov, Senior Managing Director of Gazprom Germania GmbH. The agreement with FGN will help Gazprom Germania jump from eight to 23 natural gas stations by the end of 2013. The companys latest CNG fueling facility became operational in August and it is located in the German Baltic Sea resort town of Ribnitz-Damgarten (Mecklenburg-Western Pomerania). Gazprom Germania Plans to Operate 23 CNG Filling Stations B hutan is looking at attracting more foreign investments and greater pri- vate participation in expanding the country's hydro power sector. "We encourage private sector partici- pation in the hydro power sector. We encourage Foreign Direct Investment (FDI)," Bhutan's Prime Minister Tshering Tobgay said recently, address- ing industry chambers - CII, Ficci and Assocham. "For smaller projects, we will be encouraging aggressively the private sector and FDI," Tshering said. Tata Power, among others, is already working on a hydel project in the neighbouring nation. At present, many of the hydel projects being developed in Bhutan are under an agreement between the two coun- tries. The Indian government has agreed to develop 10,000 MW of hydro power in Bhutan by 2020. Bhutan Seeks Foreign Investment in Hydropower EP EP I r a n r a n k s third in the world and sec- ond in t h e Mi d d l e East in terms of c r u d e reserves, an annu- al OPEC report announced. The Organization for Petroleum Exporting Countries (OPEC) in its Annual Statistical Report announced that the volume of Irans oil reserves amounted to 154.58bln in 2012, showing an increase of more than 1.8 percent as compared with the figures in the year before. Venezuela with 297.735bln barrels of crude and Saudi Arabia with 265.85bln barrels precede Iran in the OPEC list as the states holding the largest and second largest crude reserves. According to the OPEC report, the worlds crude reserves stood at 1.478211trln in 2012, showing a 0.9 percent increase compared with the preceding year. In April, National Iranian Oil Company (NIOC) Director for Exploration Hormoz Qalavand announced that the country discov- ered 15 oil and gas deposits in the last Iranian year (ended on March 20). Speaking to reporters, Qalavand said that NIOC focused its oil and gas exploration activities on border areas last Iranian year, adding that the coun- try found a total number of 15 new oil and gas layers last year. Iran Holding 3rd Largest Crude Reserves in World N orway's government is cutting its projections for oil prices by 4 per- cent for next year and 11 percent for 2015, reflecting higher supply and lower demand from the world's two biggest economies, its prime minister said recently. The Nordic country is the world's sev- enth-largest oil exporter. It can use up to 4 percent of its oil and gas revenues in its national budget, so it runs oil price projections to establish how much money it can count on. The government now expects the aver- age per barrel price for oil to fall to 600 crowns ($98.4) in 2014 from its earlier view of 625 crowns. It expects prices to drop further to 535 crowns in 2015. "There is growing uncertainty about oil prices. There is great uncertainty because the United States produce more (oil) ... In addition, China is buy- ing less than before," Prime Minister Jens Stoltenberg told public broadcast- er NRK. "We must be prepared for more falls (in oil prices)," he said during a break in negotiations for the 2014 budget. Norway Cuts Oil Price Forecasts for 2014, 2015 EP Hormoz Qalavand EP O ne CEO of Bangladesh once told me I am so busy that I have no time for reading books. I only read newspapers and matters relating to my job. But I found another CEO who in spite of his tight schedule still makes time for reading books for bliss and recreation. Nowadays business scholars believe that for successful career development continuous learning is a must. The day you stop learning, you begin to become obsolete. In this globalized world if you want to survive, if you want to be competitive, continuous learning is a must. In this regard read- ing is a major option. So, today our emphasis is on reading particularly on reading books. Books as we know are at the heart of any continuous learning effort. Mark Twain once said, A person who wont read has no advantage over one who cant. So, it is the obligation of any literate person to read and read. It is said that people who have no taste or desire for reading are to be pitied since they miss one of the top pleasure of life. But mere reading is not sufficient what is important is selection of prop- er books. There are good and poor ones on almost any subject. Also the way that books are read will influence how much harvest one can get out of them and the ease with which the acquired learning can be applied. For this what is required is to build an organized and systematic reading pro- gram. Generally the books can be read through two approaches. The first is core subject reading and the second approach is scanning approach i.e. get- ting something out of everything. Ruskin divided books into two classes- books for the hour and books for all time. A book for the hour is simply the useful or pleasant talk of some persons. For example, bright travel stories, witty and wise discussions on current topics, light fiction and so on. There is no harm in reading such books but it is a great mistake to allow such light read- ing take the place of the study of true books for all times. By true books we mean the books which have stood the test of the time and preserve the highest thoughts of the worlds great thinkers. Many years back Rene Descartes said, The reading of all good books is like a conversation with the finest minds of the past. Once your books are lined up, the question of how to best read them remains. But the ultimate objective should be to get the maximum benefit as quickly and expeditiously as possi- ble. In reading a book the main job should be to find the key ideas of the book ands understand their application to ones own situation. The preface and table of contents as well as summaries of book help one to do this quickly. One may read the detail only when something really meaningful seems involved. In this way one can gain much benefit in a surprisingly short time. The above method can help one to up- grade the quality as well as increase the quantity of books read. With larger exposure of different books one is more likely to come across ones worth care- ful study. In case of serious reading one should understand that since we can remember little it saves time to read only what is most likely to be worth remembering. This is in unison with Bacons words where he says, Some books are to be tested, some to be swallowed and some few chewed and digested that is read wholly and with diligence and attention. A book that is worth reading is always worth reading with care and thought. The art of reading is to think while reading so as to digest thoroughly the thoughts expressed. For this some pages may be gone through again and again. Reading can be both pleasure and illu- minating. Though people can get infor- mation and learning from many other media it is only reading which fosters an imaginative dialogue between the text and readers mind that actually make people think. Hence at this age of internet reading is still very popular. When top executives in the 500 largest US companies were asked to rate their favorite leisure time activities, most of them put reading at the head of the list followed by golf, hunting, tennis, run- ning and fishing. So, get into the habit of reading for your own survival and development. Even sometimes you may turn the TV off and read a book. Naseer Ahmed; Energy & Management Consultant E-mail:bizex@bangla.net, naseer2553@yahoo.com 26 MANAGEMENT Corporate World Reading For Continuous Learning Naseer Ahmed EP T he socio-economic background of Bangladesh and Malaysia is almost same. Bangladeshi gas professionals could be extremely benefitted learning les- sons from Malaysian experience. PETRONAS and Petrobangla can be mutu- ally benefited sharing experience and act- ing as Joint Venture partner in planning, developing petroleum resources, explor- ing and exploiting Bangladesh resources in the adopting the most appropriate tech- no-economic cost effective strategy. PETRONAS and Malaysia are almost syn- onym and so could be Bangladesh and Petrobangla. But that did not happen and now even Petro Vietnam comes to Bangladesh to venture resources explo- ration. A professionally managed Petrobangla could now be working all over the world like PETRONAS, ONGC, SINOPEC and likes. Given the importance of the visit and opportunity of learning lessons from PETRONAS this writer does not believe that Bangladesh could select the team smartly. While the technical team was all right, policy group should have persons having another three to year service and were involved in strategic planning of the sector. The inclusion of Chairman Parliamentary Standing Committee on Power, Energy and Mineral Resources was right choice and so was Joint Secretary (Development). But it could be much more useful if some Managing Directors of operating companies who later were pro- moted as director Petrobangla could be included. After this entire visit was envi- sioned learning from PETRONAS experi- ence, planning and implementing replica- tion of the same wherever feasible in Petrobangla system operation and man- agement. USAID personnel accompany- ing the team made professional assess- ment of the visit and perhaps submitted it MoEMR. Technical team visited a major compressor station of PETRONAS gas transmission sys- tem and the gas export station to Singapore at Zohurbaru. The giant gas pipeline compressor station was designed to state-of-the-art modern technology and operated very efficiently by own profes- sionals of PETRONAS. We had extensive interaction with PETRONAS professionals. The present MD GTCL Engr. Aminur Rahman and ex-Petrobangla Director [Operation] Petrobangla Engr. Mahabubur Rahman were with us. I am sure they were extremely benefitted from the day long visit and made significant contribution to GTCL initiative of gas pipeline compressor station project. As Director [Operation] GTCL and Project Director GTCL com- pressor station at that time this writer was immensely benefitted. However, the extensive plans that I made for design, implementation and operation manage- ment of pipeline compressor stations could not be materialized due my invol- untary dissociation from Bangladesh gas sector. PETRONAS has excellent training facilities for gas compressor stations oper- ation. GTCL may plan to send its engineers and operators for real time training at PETRONAS facilities. Gas District Cooling Anyone who has visited Malaysia or tran- sited through massive Kuala Lumpur Airport must have seen the excellent cool- ing system. The similar cooling system is in place at Putrajaya major installations and KLLC tower. Believe it or not these are natural gas cooled. The Bangladesh team had rare opportunity of visiting the gas dis- trict cooling facility of PETRONAS at Putrajaya. This writer had a plan to repli- cate this for international airports at Dhaka, Chittagong and Sylhet. I hope the team members who are in active service in Petrobangla will try to do this. This will make economic use of gas and save lots of energy now being wasted in those installa- tions. Even major mega malls in Dhaka like Bashundhara City and Jamuna Future Park can have gas district cooling. Training & Capacity Building PETRONAS has excellent recruitment pol- icy of fresh professionals, training and capacity building strategy before inducting them to PETRONAS system. Petrobangla can take a clue from it. We understand Petrobangla and its company now suffers from lack of competent professionals. Petrobangla can be extremely benefitted from PETRONAS experience of develop- ing BHUMIPUTRAS for its system devel- opment and operation. Presentation of Bangladesh Opportunities On the penultimate day of PETRONAS visit the writer had the honor of opportu- nities for PETRONAS in petroleum sector in Bangladesh. The power point presenta- tion was made at the 43rd floor of PETRONAS tower and was attended by senior professionals of PETRONAS. They showed lot of interest in all segments of gas value chain .A win-win joint venture of PETRONAS with Petrobangla could only serve the greater interest of Petrobangla and Bangladesh. Visit to Mine Resort This writer with some PETRONAS friends visited Mine Resort Centre in the outskirts of Kualampoor City. This is huge recre- ation Centre and alluring lake made on the completed open pit copper mine. I was really very much moved to witness how the mining has changed the life and living of the mining community. The lake has thousands of rare fish and birds. A mega mall has been also set up on the rehabili- tated section of the mine where mostly the mine affected community is running busi- ness. Thousands of visitors every day vis- its the resort. Anyone who stays in KL for a day or two can visit Mine Resort Centre. Similar facilities can be set up at Barapukuria or Phulbari taking lessons from the resort centre. This writer often visited Malaysia for attending seminars and networking and had opportunities of visiting other tourist resorts. Those experiences will be shared in future with EP readers. Presentation to Parliamentary Standing Committee This writer was advised by Chairman Parliamentary Committee through Petrobangla to make an exclusive presen- tation to the committee sharing the lessons learned. On two meetings we were ready with the presentation and almost started it. But the honorable MPs were not interested in the presentation. They were rather inter- ested to visit PETRONAS to see for them- selves. As such an excellent opportunity was lost to share experience with Bangladesh power and energy sector think tank. We hope after the ensuing general elections the new government will try to learn lessons from regional petroleum companies like PETRONAS, PERTAMINA, SINOPEC, ONGC and try to replicate the better strategies for Petrobangla. Engr. Khondkar Abdus Saleque; Advisor, Ministry of Mines, Afghanistan 27 MEMOI RS Pilgrimage to PETRONAS II Engr. Khondkar Abdus Saleque EP 29 T hough Improved Cooking Stoves [ICS] was innovated by the local scientist in 1970s yet in more than three decades the use could not be popularized significantly. Only about 1 million families out of 30 mil- lion now have ICS. Government or development partners have no definite information about what percent of the above ICS are in use. But German development partner GIZ in endeavor- ing its efforts for popularizing the local scientists innovated high quality ICS in the name of suspended use stoves.Government has also given greater attention considering its posi- tive impacts on public health, environ- ment friendliness and conservation of fire woods. GrameenShakti which pioneers renewable ener- gy development through solar energy use and other NGO have also joined this m o v e m e n t . USAID has final- ly joined this ini- tiative with finance and tech- nology support. All these works are now pro- ceeding under a national initia- tive. Recently Catalyzing Clean Energy in Bangladesh (CCEB) and Global Alliance for Clean Cook stoves (GCC) of USAID jointly organized a seminar at Bangabandhu International Conference Center to popularize use of Improved Cooking Stoves for all. This program is named Market facilitation platform. Dan D Mazena US Ambassador attended the program as chief guest. This seminar was arranged for popular- izing the use of clean energy using stoves, marketing and improving quali- ty. This seminar created opportunity for discussion among local and interna- tional stove makers, NGO, develop- ment Partners, local entrepreneur and government officials towards creating market for new and efficient cooking stoves.Various clean energy using stoves manufactured by international companies were on display. US Ambassador Dan D Mazena reiter- ated the renewed pledge of USA for working shoulder to shoulder with the Government and other development partners for popularizing the use to cooking stoves which cause no harm to health, reduce cooking time, use less fuel and cause less emission. Special guest Taposh Kumar Roy addi- tional Secretary Power Division informed that government is working on a plan for setting up of 7 million ICS in 5 years. For its effective utilization we are waiting for organizing residential fuel supply platform. All stakeholders involved in the process will be its members. We have firm belief that ICS will also be a successful venture like solar home heating. Government is working with political commitment and has taken initiative to involve peoples representatives. Imporved Cooking Stove for All EP Report US Ambassador Dan D Mazena & Taposh Kumar Roy additional Secretary Power Division visit the stall after inaugurate the exhibition 31 The program was organized as part of USAIDs 5 years term 15 million worth CCEB project. CCEB will assist Bangladesh in creating an institutional environment for market development of clean fuel using cooking stoves, expanding energy efficiency in indus- trial sector, and integrated develop- ment of clean energy.USAID in associ- ation with GSCC launching partners, its alliance and US Government will work intimately for supplying world- wide about 100 million clean cooking stoves. Richard Green USAID Mission Chief in Dhaka, Paul Evans Country Director SNC Paul Stevens and Sabrina Amjad acting team leader of CSEB. The program included a day long tech- nical session. The experts talked about issues, opportunities and ways of driv- ing the initiative to success. They stressed upon effective campaigning for changing the mindset the rural pop- ulation for using improved cooking stoves instead of traditional ones. They also stressed upon strict monitoring and regulation of quality for eliminat- ing the possibility of using substandard cooking stoves. A day long exhibition was also held for displaying various types of ICS. The chief guest also inaugurated the exhibi- tion. EP B angladesh finally outlined a fund requirement of $ 2.76 billion for implementing its 500MW solar power program by 2017. Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) published a booklet last week outlining this fund requirement and sourcing arrangement. In 2010, the government announced the 500 MW solar power program in line with the Asian Development Banks (ADBs) Asia Energy Solar Initiative to develop 3000MW solar power in Asia and Pacific Region by 2013. As per the outline, the 500MW solar program has been divided into two parts 340 MW commercial solar projects and 160 MW social sector solar projects. The commercial projects include solar irrigation of 150 MW, solar mini grid of 25 MW, solar park of 135 MW, solar rooftop of 30 MW. The social projects include 50 MW for solar-powered healthcare centers, 40 MW for remote educational centers, 7 MW for union E-centers, 12 MW for religious establishments, 10 MW for remote railway stations and 41 for gov- ernment and semi-government offices. As per the Power Divisions estimate, of the total required $ 2.76 billion fund for this 500 MW, the commercial proj- ects need $ 1.77 billion and the rest is required for the social projects. Of the total commercial and social projects requirement, $ 1.38 billion is expected as financial support from development partners in the form of grant of and another $ 0.85 billion in low interest credit. The remaining fund 0.53 billion will be arranged from the government and private sector. Sources said that despite repeated appeals from the stakeholders in the countrys renewable energy sector, until recently there was no specific fund-outline, strategies and guidelines from the government side to imple- ment the gigantic program. Now through publication of this doc- ument, the government expresses its seriousness about the solar program, said an official, who is in-charge of solar-related programs. He said the publication of the document will help delineate the features of the govern- ment strategies and programs to inter- national donor agencies to seek their supports for the program. Govt Outlines $2.76bn Fund Requirement For Solar Projects EP B angladesh has recorded the fastest growing solar home systems (SHS) program in the world with 24 lakh homes being lighted under the project till June this year, officials said. World Bank has hailed Bangladeshs program as the fastest growing SHS initiative. SHS has been producing 105 megawatt (MW) of electricity inde- pendent of the national power grid, saving large quantities of gas, coal and oil. Experts said the country has suc- cessfully tapped into the potential of solar power following more incentives to cut costs. According to the latest data of state- owned Infrastructure Development Company Limited (IDCOL), the coun- try has an average of 80,000 new SHS installations each month. The IDCOL, a non-banking financial institution under the finance ministrys Economic Relations Division (ERD), has installed SHS with financial sup- port from the World Bank and other donor agencies in partnership with pri- vate sector business entities and NGOs across the country. The other agencies include Asian Development Bank (ADB), JICA of Japan and KfW of Germany. According to the World Bank, the aver- age SHS installations rate was 50,000 per month in February this year. The WB has been supporting the program under the Rural Electrification and Renewable Energy Development Project (RERED) since 2002. Bangladesh Leads in Solar Power Project EP 32 B angladesh finally outlined a fund requirement of $ 2.76 billion for implementing its 500MW solar power program by 2017. Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) published a booklet last week outlining this fund requirement and sourcing arrangement. In 2010, the government announced the 500 MW solar power program in line with the A s i a n Development Banks (ADBs) Asia Energy Solar Initiative to develop 3000MW solar power in Asia and Pacific Region by 2013. As per the out- line, the 500MW solar program has been divided into two parts 340 MW c omme r c i a l solar projects and 160 MW social sector solar projects. The commer- cial projects include solar irrigation of 150 MW, solar mini grid of 25 MW, solar park of 135 MW, solar rooftop of 30 MW. The social projects include 50 MW for solar-powered healthcare centers, 40 MW for remote educational centers, 7 MW for union E-centers, 12 MW for religious establishments, 10 MW for remote railway stations and 41 for gov- ernment and semi-government offices. As per the Power Divisions estimate, of the total required $ 2.76 billion fund for this 500 MW, the commercial proj- ects need $ 1.77 billion and the rest is required for the social projects. Of the total commercial and social projects requirement, $ 1.38 billion is expected as financial support from development partners in the form of grant of and another $ 0.85 billion in low interest credit. The remaining fund 0.53 billion will be arranged from the govern- ment and pri- vate sector. Sources said that despite r e p e a t e d appeals from the stakehold- ers in the c o u n t r y s r e n e wa b l e energy sector, until recently there was no specific fund- outline, strate- gies and g u i d e l i n e s from the gov- ernment side to implement the gigantic program. Now through publication of this document, the government expresses its serious- ness about the solar program, said an official, who is in-charge of solar-relat- ed programs. He said the publication of the document will help delineate the features of the government strategies and programs to international donor agencies to seek their supports for the program. Solar Powered City Traffic Signals to Be Delayed EP N orway has awarded concessions to build eight new onshore wind farms for about 20 billion kroner ($3.3 billion) in a bid to triple the countrys capacity to more than 2 gigawatts by 2020. Concessions given SAE Vind DA, Sarepta Energi AS and Zephyr AS would add 1.3 gigawatts of wind power, which could produce 3.7 ter- awatt-hours, enough to supply 185,000 households for a year, the Petroleum and Energy Ministry said in a statement. The concessions in the Trondheim area also include a power line to be built by Statnett SF, which operates the Norwegian electricity grid. The new capacity will represent a sig- nificant part of Norways renewables commitment. Norway aims to have 67.5 percent of its energy consumption from renew- able sources by 2020, and has estab- lished a common green certificate scheme with Sweden under which the two Nordic countries plan to build additional renewable energy capacity of 26.4 TWh by the end of the decade. To be eligible for certificates, the new wind farms will need to be ready by 2020, ministry spokeswoman Lise Rist said in an e-mail. Norway had a wind-power capacity of 704 megawatts and a production of 1.57 gigawatt-hours in 2012, accord- ing to the Norwegian Water Resources and Energy Directorate. Wind power represented 1.1 percent of the coun- trys power production, which consists almost exclusively of hydropower. Norway Approves $3bn for Wind Power Plants EP 33 ARTI CLE Hope, Tale & Reality Hasan Kamrul T he energy demand in Bangladesh is increasing day by day due to the pace of economical growth. Industrial demands increase also but demands cannot be fruitfully taken due to shortage of electricity. Industrial growth, power generation, capacity building, supply line capacity etc. have direct impact on consumers life which cannot be declined also. The ruling Awami League assumed power in January 2009 with huge majority. Energy sector and its enhancement were the piv- otal commitments in their election mani- festo. Government works really to change the countrys electricity figure from their first day. But hopeful vision, unhopefully remains with unpleasant work, and the result is not visible yet. There is a distinction between hope, tale and reality. Government has taken mas- sive works in power sector, but ultimate- ly the result is poor. Rental & Quick Rental: Government has taken many projects in power sector to raise the generation capacity. Rental and quick rental is the utmost initiative. But it creates a criticism event by the experts. Government has already added over 3,000 megawatts to the national grid and it is possible only for rental & quick rental power plants. But rental and quick rental raises more questions than megawatts. Why credit has not gone to government pocket? Why credit makes misunderstanding/ mistrusting among the consumers? Is rental, quick rental responsible for the total things? But if government didnt take rental quick rental policy, 3,000 megawatts couldnt be added to the national grid -- it is also true! Nuke Power Plant: Nuke power plant has not yet been undertaken. In 1996 when AL was in power, they took initiative to set up a nuke power plant at Rooppur in Pabna but government did not serve the purpose, even no physical steps were taken at that time. In this tenure the same government, the same initiative and the same tale, but reality is far from expect- ed. Just everything goes upon seminar, symposium and bilateral talks. However, government has sought Rooppur nuke power from their first day. Bangladeshi premier visited Russia and made several agreements. But no physi- cal works have been done in their long committed years. On the other hand, the neighboring country has done massive progress on nuke power. Regional Status: India demands a day 120,000 MW but production capacity is not over 90,000 MW per day, about 30,000 MW dearth on their daily lives. India is privileged on hydropower. They are searching the alternative sources. Solar energy, wind energy also gets prior- ity in their policy Sri Lanka is the best in SE Asia; they have over production, no shortage of electric- ity. They make their life more comfort- able and healthy. Nepal has little shortage, demands about 3000 MW but production is 2,700 MW; shortage only 300 MW. Bhutan is similar to Nepal. But Nepal and Bhutan could be electricity supplier for the neighboring count- ries like India and Bangladesh. Nepal and Bhutan are the major source of hydro- electricity in SE Asia. India already start- ed their journey for hydropower in Bhutan. They have taken a project in 2003 for producing 2000 MW capacity from hydropower. Bangladesh should take same work that would be more fea- sible for the country. Coal: Bangladesh has 100 billion tonnes of natural coal reserve in their northern districts like Dinajpur, Rangpur and Naogaon which is equivalent to 79 tcf gas reserve. But coal is not used for eco- nomic growth due to continuous threats of civil society. Even government is hesi- tant to touch this sector. Coal policy has not yet been undertaken. Why? There is no suitable answer. Nobody can tell when it will be finalized! But AL was committed in their manifesto if they will take power they can finalize the coal pol- icy for removing the hindrance. But they didnt keep their promise. Gas: Countrys natural gas reserve is not promising. Remaining gas reserves will be finished in 2020. If new gas fields are not discovered, it could be terrible for the country. Recently BAPEX scientists dis- covered Srikail gas field which is also part of Bangura structure. It is very small field, the reserve of Srikail is not promis- ing also, and experts are not satisfied on this reserve. However, government has already hired Russian State Company Gazprom for doing 10 development wells in different gas fields. After comple- tion existing gas reserves will be updated definitely. About Smart Grid: India introduces smart grid successfully to enhance the power supply and control the transmission and distribution systems. India is more con- cerned on systematic development on their power sector. Bangladesh tries to expedite of smart grid in the power sector. The country has only a national load dispatch centre and a dis- tribution load dispatch centre which is not working properly. A pilot project has been taken and introduces some pre-paid meters. There are a few technical persons who are not sufficient to cover whole country for introducing the smart grid. Bangladesh can get the cooperative helps from the experienced countries and trained the people like India, Norway and Sweden. Smart grid introducing is the first step also to make Bangladesh as a digital country. Government definitely is dedicated to take this technology all over the country. Simply smart grid is the combination of electrical power system and information technology, using computer based remote control and automation. They are usually used for electricity networks from the power plants all the way to the con- sumer of electricity in homes and busi- nesses. We have to fix our future electric- ity transmission and distribution system for the considering of both utilities and consumers interest. It is to be pleasant to the businessmen, investors and regulato- ry body. The smart grid will be supportive to the energy policy targets, featuring, improved system reliability, employee safety, energy unconventionality and security, innovative services for cus- tomers, and enhanced power quality. So it is essential to set out smart grid tech- nologies to transfigure the flexibility, and the electrical infrastructure. For a century, utility companies have had to send out workers to gather data need- ed to provide electricity. The normally workers read out the meters, looks for broken equipment and measures voltage, for example, most of devices utilities use to deliver electricity will be automated and computerized. The grid means amounts to the networks that carrying out electricity from plants (where it is generated) to consumers. The grid includes wires, substations, trans- formers, switches and so on. Automated meters and two ways power consumption data might be used to enhance the efficiency and strengthening the power distribution system. The trans- mission ability can be improved by intro- ducing the long-distance and large- capacity power transmission systems in order to clarifying the complications of instable distribution for generation resources and power loads. The decen- tralization of power loads from urban to rural areas of Bangladesh can make smaller the immensity of energy in the cities and the stress of transmission. Environment pollution would also be pointed out by adopting this step. Additionally this can go faster the refor- mation of national economy putting the customer satisfaction. The smart grid can spontaneously recal- culate and distribute electricity to all con- sumers putting reduced amount is less or equitably but at reduced amount leaving no premises without electricity in case of load-shedding, caused by electricity/ energy shortage in the country. In fact, Load-shedding will be reduced with such better-quality and fair electricity distribu- tion and the business profits would increase as power from the grid would always be available at consumer premise even during load shedding. Energy crisis exists worldwide, since more than 40 countries have power sys- tem instability and load-shedding due to electricity shortage. North American and European enterprises are currently work- ing on building smart grid to optimize energy flow using digital radios for more efficient electrical grid control and ener- gy conservation. The need to build 'smart grid' technologies is intensifying world- wide and Bangladesh can be the first country to set up digital radios and R/C circuit breakers in mass scale for highly efficient electric energy distribution and energy conservation. Digital radios will be required for the development of smart grid to wirelessly control the electricity distribution in the country. At present, Bangladesh does not have enough circuit breakers on the electricity distribution network and most of them are not remote controlled. As a result, a large area gets immersed into darkness. To maintain the power system stability, cable and transformer protection, load balancing and for supporting network stability, huge amount of circuit breakers are required in Bangladesh which will segment the present electrical network into smaller parts. If electrical fault in a segment will get identified, electricity availability will rise. The fault will affect only that particular segment and not deteriorate all over the network to plunge a large area into darkness (source: American Smart Grid pattern develop- ment stages by Electrification Board) This is not a tale, this is reality. We can save our electricity up to 40% by using smart grid. Hasan Kamrul; Works as a geologist hkgeologist@gmail.com 34 EP T he number of households com- plaining about shortage of gas supply to their kitchens in the capital city is increasing. New areas of the city are joining those parts who have been suffering the gas crunch for long. The problem is no longer con- fined to the mostly outlying parts of the city. The shortage has hit the cen- tral parts of the city. Residents of the areas like Shantinagar, Malibagh and Rampura are the new victims of errat- ic gas supply badly affecting the cook- ing and the life style. Consider the ordeal of Mariam Begum, a homemaker living in a multi-storied apartment building in Rampura Banashree residential area. As she woke up one day last week her domestic help declared: Khalamma, there is no gas coming in the stove. For Mariam it was a devastating piece of news indeed. She had to cook break- fast for her businessman husband, two school-going kids and for herself too. Dont leave the domestic aide out. Marian could not wait for even half an hour. As she was running against time a panicked Mariam sent her 13-year- old domestic aide to a convenience shop out on a street overlooking her apartment to buy some loaves. Somehow, she over- came the challenge that morning. She thought the disrup- tion would be tem- porary and piped gas will flow into her kitchen sooner than later. Mariam proved wrong. It was not until almost mid- night when gas returned to her kitchen. The flow was low, barely enough to cook next mornings break- fast. Meanwhile, she spent the rest of the night to cook next days lunch too. Next day Mariam learned from her neighbours that they too had to go through the sufferings. For almost a week since that day Mariam and her neighbours are not in good shape. The non-availability of piped gas has altered their life style. They are forced to cook their break- fast, lunch and dinner only after mid- night or so when a little bit of gas is available. The use of piped gas for cooking has long been considered a luxury in ener- gy-starved Bangladesh. The privilege has benefitted only a few people living mainly in the capital city and its neigh- bourhood. Most other parts of the country rely either on firewood or cylinder gas. With production of natural gas not really rising to match the growing demand, the users of the cheapest fuel have started feeling the crunch. It may not be long when the days of luxury will be over. Nationwide, the country currently pro- duces 2000 million cubic feet(MMCF) natural gas in the 79 wells 18 gas fields per day. And the daily demand is over 2500 mmcfd, leaving a daily deficit of over 500 mmcfd. Household kitchens are the fifth largest user of natural gas after power, captive power, fertilizer and industries. Household users are not the only suf- ferers of the current shortage of natural gas. The government has recently diverted supply of gas to the fertilizer factories, a much-need move to keep fertilizer prices in check. This has caused a reduction in the supply of gas to other sectors, including power, the Number 1 user of natural gas. With gas supply dwindling, the power plants are generating less power causing load shedding that was almost non-existent in past few months. Since Bangladesh suffers a deficit in relation to the production and use of natural gas (its true in some other util- ity sectors too), the consumers stand to suffer too. The users of piped gas should now be looking for the alter- native: cylinder gas. That, however, is shocking news for them. The cylinders will cut deep into their pock- ets, already going dry to cope with the ris- ing cost of living and the inflation. 35 COLUMN Dhaka Residents Are At Odds With Cooking Gas EP A new revolution could be start- ed in using renewable energy in the country through intro- ducing solar systems in irrigation pumps and rooftops. But the govern- ment will have to introduce feed-in- tariff and net-metering system as well as to provide subsidy for solar pumps to make it successful. The views were expressed by general manager of Rahimafrooz Renewable Energy Limited Sohel Ahmed in an exclusive interview with Energy & Power Editor Mollah Amzad Hossain. Following are the excerpts from the interview: EP: How do you see the renewable energy sector of Bangladesh from the point of view of the policy and its implementation? SA: The government is now much more focused on the expansion of the sector, contributing to increased par- ticipation by the private sector. The governments policy in expansion of solar system is specially laudable, including the policy to make it manda- tory to set up solar system in getting grid power connections. However, it is not clear yet what incentive a con- sumer would be entitled to if they set up solar system. As a result, the utili- ties do not have the actual information on how much solar power is being generated from the solar system peo- ple set up to get the grid connection. It happened due to lack of appropriate monitoring. Asian Development Bank had prom- ised to assist Bangladesh in generating 500MW of solar power under its Asian Solar Energy Program of generating 3,000MW electricity. The government is continuing with the target in coop- eration with the private sector, despite the ADB is not providing the support as promised. IDCOL, a state-owned finance compa- ny, continued its efforts in financing the solar projects as they did in the past. But other financing companies should also be brought in promoting the renewable energy sector to ensure financing for the sector for a long peri- od of time. For instance, Bangladesh Krishi Bank could not be possible to engage in solar irrigation pump pro- gram despite having their capacity. A financial sector restructuring is neces- sary to promote renewable energy. The governments intention about energy efficiency and conservation is good, but it deserves more campaign to aware people that they as well as the nation could be benefited through efficiency and conservation of energy. We are working on energy efficiency and through the process we are work- ing on taking carbon credit. I think the issue should be reached to the indus Sohel Ahmed Bangladesh at The Threshold of Solar Revolution 37 I NTERVI EW The contribution of solar energy in the countrys total power gen- eration is negligible, but solar home system in Bangladesh is a success case and appreciated elsewhere in the world. trial entrepreneurs through conducting a survey so they become interested in investing on energy efficiency. EP: How do you evaluate the achieve- ment of making mandatory the setting up of solar system on rooftops? SA: It has not been effective for lack of proper enforcement of the law. For lack of proper monitoring, there is no information about the generation of electricity from solar system or how much the systems contributed to save electricity. I think proper monitoring system should have been developed before enacting the law while ensuring product and vendor standardization. Now, a remote monitoring system should be developed, which would help collect information through using GCM technology. However, the gov- ernment has planned in this regard, but its implementation should be expedited. On the other hand, the rooftop solar systems could be brought under the CDM program. Moreover, maintaining renewable portfolio could be made mandatory for the utility services so that they would be compelled to take certain quantity of electricity from renewable energy. It should be kept in mind that there is lack of adequate space in Bangladesh, limiting the scope to set up big size solar panels. So rooftop solar system could play a big role in power generation if we can work on proper planning. EP: How do you see the future of solar energy in Bangladesh? SA: The contribution of solar energy in the countrys total power generation is negligible, but solar home system in Bangladesh is a success case and appreciated elsewhere in the world. Some 2.5 million units have already been set up in the country which is growing at a rate of 60,000 units each month, bringing qualitative changes in the livelihood of the rural people, par- ticularly of off-grid areas. The initial plan was to set up 6-7 million units across the country, but a World Bank study shows that there is a scope to set up more than 12 million units. I think, rooftop solar has the biggest potential after non-grid solar system. The potential is much higher in Dhaka and Chittagong. Beyond this, there is a big potential for solar irrigation, but the government needs to move for- ward with appropriate plan. EP: Would you elaborate about the solar irrigation system? SA: A revolution could take place as far as irrigation is concerned. But the government will have to undertake a long term plan. The project started few years back on a pilot basis and only around 100 pumps have so far been set up. IDCOL is now working with the solar pumps, which would make some more success. At present, the govern- ment is paying a huge amount of money as subsidy to agriculture irriga- tion. A part of the subsidy could be given as grant for the expansion of solar irrigation, which would eventu- ally save a lot of money for the nation- al exchequer. It is necessary to set up solar irrigation pumps with financing by the govern- ment to exhibit them across the coun- try. EP: How do you see the governments recent initiatives to ensure efficient use of energy? SA: It has been initiated in a large scale for the first time in the country. A big success achieved through intro- ducing CFL bulbs, following which the use of LED bulbs has just started. But a study should be conducted to identify where and how much of electricity could be saved through efficient use of energy. At the same time, it should be projected how much of financial ben- efit could be attained through ensuring efficient use of energy in industries, commerce and power generation. The government should work on the issue in a more planned manner, including offering incentives to those who would ensure energy efficiency. EP: It has been too late but the Sustainable and Renewable Energy Authority has started working. What do you say? SA: I think it will contribute a lot as a point to provide one stop service. It would also work as a bridge between the public and private sectors. The authority should start formal journey without any delay. EP: What do you say about the need of feed-in tariff to help expand the renewable energy? SA: It is a big question why the tariff is not being introduced, which has no alternative to promote expand renew- able energy commercially. There is an initiative to set up a solar IPP in the Bangladesh Secretariat, which would facilitate estimating a price for solar power to sell. At the same time, net metering or two-way metering system should be introduced. In should be examined whether the grid is ready for these types of meters. EP: With local production capacity is more than the demand, Bangladesh is still importing solar module. Is it a threat to local industry? SA: Bangladesh is a big market for small-scale solar system. However, a level playing field should be created between the local and imported pan- els. IDCOL has a system of vendor standardization, but there is no panel testing lab in the country. At present, solar panels are being sold in the Bangladesh market at dumping price. The government should take measures to stop it. Initiatives were taken in America and Europe to stop dumping. RahimAfrooz is producing internation- al standard solar panels, but could not go to international market yet. However, we hope to do by this year. EP: What do you think about regional cooperation in renewable energy? SA: Why it is not happening as coop- eration taking place in case of tradi- tional energy. But, I think, a complete study should be conducted before starting. 38 EP