VOL NO REGD NO DA 1589

Friday, August 11, 2006

HEADLINE

POLITICS & POLICIES

METRO/COUNTRY

EDITORIAL

VIEWS & OPINIONS

LETTER TO EDITOR

COMPANIES & FINANCE

BUSINESS/FINANCE

LEISURE & ENTERTAINMENT

MARKET & COMMODITIES

SPORTS

WORLD

 

FE Specials

SPECIAL ON BIRD FLU

URBAN PROPERTY

FE Education

FE Information Technology

Special on Logistics

NATIONAL DAY OF EGYPT

Saturday Feature

Asia/South Asia

 

Feature

13th SAARC SUMMIT DHAKA-2005

SWISS NATIONAL DAY 2006

57th Republic Day of India

US TRADE SHOW

 

 

 

Archive

Site Search

 

HOME

HEADLINE
 
Gas sector master plan awaits EMRD approval
M Azizur Rahman
8/11/2006
 

          The country will soon adopt its first ever Gas Sector Master Plan (GSMP) that outlines policies on exploration, production and pricing.
"The draft of the 25-year GSMP has already been finalised and it now awaits approval of the Energy and Mineral Resources Division (EMRD)," a top official of the EMRD told the FE.
He said the EMRD is now reviewing the draft GSMP. The EMRD is taking comments from energy experts aiming to make the plan time-bound and appropriate, he added.
The World Bank (WB) has financed the drafting of the GSMP. The draft GSMP has projected the present gas reserve to go dry by 2015 if no new gas discovery is made.
To maintain an uninterrupted supply of natural gas to the consumers the government must have to discover new gas reserve of at least 20 trillion cubic feet (TCF) by 2010, the proposed GSMP pointed out.
The sector will require investment worth nearly US$ 8.0 billion by the next five years to develop existing gas fields and discover new ones.
On future gas prices, the draft GSMP suggested that the domestic gas prices should be raised to a level equivalent to the petroleum price of $ 50 a barrel by 2010 to make it compatible with the international gas market.
Currently, domestic gas price in Bangladesh is $ 1.4 per 1,000 cubic feet on an average, which is equivalent to the petroleum price of $ 10 a barrel in the international market.
The draft GSMP recommended that the gas price needed to be increased on yearly basis starting from this year.
The government should raise the domestic gas price to $3.7 per 1,000 cubic feet this year, $4.5 in 2007 and accordingly reach $7.4 in 2010.
EMRD sources said the draft GSMP has been prepared to match with the existing 20-year Power Sector Master Plan (PSMP).
The country's parent gas company - Petrobangla - said natural gas accounts for 70 per cent of energy consumption.
Natural gas is mostly used as fuel for generating electric power and producing chemical fertiliser.
Besides, gas is also being used in running vehicles, burning bricks and manufacturing industrial products.
The country's 90 per cent of the existing power plants are gas-based, a senior Petrobangla official said.
"Due to absence of GSMP most of the gas projects are being carried out on the basis of project concept paper (PCP), which delays the implementation," he said.
The government has, however, taken initiative to frame the gas sector master plan 51 years after the first discovery of gas field in Sylhet in 1955, Petrobangla officials said.
Two rounds of international bidding have already taken place without the master plan for gas sector in Bangladesh.
Eight production-sharing contracts (PSCs) with the international oil and gas companies (IOCs) have already been signed for 10 blocks across the country.
Now the government is planning to float tender for third round bidding for deep-water hydrocarbon exploration in the Bay of Bengal.
Besides, Bangladesh has over 138 drilling wells, 70 exploration wells, 68 appraisal wells.
A total of 23 gas fields and one oil field have so far been discovered during last half a century.
It had initial recoverable gas of 20.51 TCF, which now reduced to 14.88 TCF after consumption of 5.63 TCF.
The country's gas production capacity is now 1550 million cubic feet per day (mmcfd).

 

 
  More Headline
Plot to blow up planes foiled
Gas sector master plan awaits EMRD approval
EPB campaign for 'One District One Export Product' gets tepid response
Negotiation for hard-term ADB loan for rly sector reaches final stage
Govt to form 'High-tech Park Authority' soon
Strong lobbies active to foil move for activating TCB
Vietnam lawsuit alarms foreign banks
HC grants ad interim bail to five CPD functionaries
Hezbollah rockets pound northern Israel
Voters' list to be updated until August 20
Indo-Bangla Home Secy level talks on Aug 25-26
Penalty freight charge at Ctg port withdrawn until Aug 25
Govt order to renew auto rickshaw route permit
Wholesalers manipulating prices of essentials
NBR speeds up process to bring about reform in revenue sector
Recruiting agents asking higher amount of money for Malaysian jobs
BIMSTEC ministerial meet in Delhi ends without setting new deadline for FTA
Higher gold prices drive down volume of sales in local markets
Carbon emission reduction raises energy efficiency
Thrust on even enhancing tax base for healthcare of the under-privileged
PM hears from Ctg, Comilla party leaders
No election sans reforms, says Jalil
Bullish trend continues on DSE
BTRC to issue nationwide licencing system for Dhaka zone
Call rate, dollar stable
Developments in the region and abroad
 

Print this page | Mail this page | Save this page | Make this page my home page

About us  |  Contact us  |  Editor's panel  |  Career opportunity | Web Mail

 

 

 

 

Copy right @ financialexpress.com