The Ministry of Power, Energy and Mineral Resources have made progress in the power department but the fuel sector still lacks advancement. This time however, multiple initiatives are being taken in order to revamp the energy sector.
The Barapukuria coal mine is under survey and work is underway to revise production-sharing contract (PSCs) and multi-client survey. Moreover, the energy division is gearing up for strategic partnerships with foreign companies.
An energy division official, wishing to remain anonymous, said, “We have no experience in extracting gas from mountains and sea.”
“Talks are underway with Russia’s Gazprom,” he said.
The official revealed that in the last five years gas import from foreign companies was given priority while state-owned gas company Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) sat idle.
However, the import did not do much to help increase the production of gas. On the contrary, the demand has shot up making the country dependent on import.
“Oil and gas exploration is a lengthy process in itself,” Energy Division Joint Secretary Nazmul Ahsan told Bangla Tribune.
“There is great financial risk here and it’s difficult for a country such as ours to take that risk,” he added.
He said that they are thinking of forming strategic partners with foreign nations to speed up the work of BAPEX.
Ahsan claimed that the state-owned company has become efficient than before and the division was preparing to bring in foreign trainers for workshops rather than send the staff abroad.
“This will be efficient both in terms of money and time,” he said.
Meanwhile, BAPEX sources said that last year the company led negotiations with Azerbaijan but the deal did not go through as the ministry did not approve it.
Although the PSC in oil-gas exploration allows BAPEX a 10 percent stake, the company has been unable to confirm deals with any foreign company.
Meanwhile, there hasn’t been much progress in the coal extracting sector despite the high demand for fuel. Although several attempts have been made for coal extraction, the government backed out keeping the agricultural lands in mind.
However, talks are underway for an open mine at Barapukuria and the survey has revealed that mining was in that part was feasible.
Responding to queries on the matter Petrobangla Chairman Ruhul Amin said, “The survey is not over yet and nothing can be said until then.”
The government also wants to implement the multi-client survey at sea. The process includes running a survey on exploration of oil and gas in the sea blocks. If foreign companies see potential there, they will come to extract gas. People familiar with the matter believe that sea blocks can be put out for lease if the PSC that is still hanging in a limbo goes through.
“We will call tenders for oil-gas exploration as soon as the PSC is finalised,” said the Petrobangla chairman.
He added that multi-client survey was also important as it will attract foreign companies.
Experts believe that liquefied natural gas (LNG) is the only successful part of the energy sector. Currently 3000 cubic metres and plans are underway to add another 500 cubic metres following April.
They say that if the import is increased, it will be possible to supply LNG to the capital as well.