Tuesday, June 9, 2009

Decision on coal policy this month likely

Shamim Jahangir
The Government is likely to take a major decision on ‘Coal Policy’ this month to ward off controversy on open pit and underground cave method of coal mining, sources in the Ministry of Power, Energy and Mineral Resources said.
Besides, the Energy Ministry will also arrive at a decision on ‘Third Round Offshore Bidding on Oil and Gas Search’ this month for offshore gas exploration, sources added.
Prime Minister Sheikh Hasina directed the Energy Ministry officials recently to take immediate steps about the ‘Coal Policy’ and Third Round Bidding on oil and gas search in offshore after series of sitting, informed sources in the Ministry said.
“The Energy Ministry has already taken preparations for coal and third round bidding on oil and gas exploration in the sea following the direction of the Prime Minister,” a senior official of the Ministry told the New Nation yesterday.
“As per direction, the ministry will arrange a meeting to seek opinion of the experts for finalising the coal policy this month,” an official said.
The Adviser to the Prime Minister on Power and Energy Dr Tawfiq-e-Elahi Bir Bikram will present the planned coal mining city map before the experts to seek their opinion in this regard, sources said.
Prof Patwari Commission had placed proposed Coal Policy before immediate past Caretaker Government. But the present Awami League government is yet to finalise the policy following the controversy over open pit and underground cave method of coal mining.
Bangladesh has now only one active Production Sharing Contract (PSC) on block 16 for oil and gas exploration in offshore. There were five blocks till February this year. Four oil companies have abandoned Bangladesh’s offshore blocks for poor gas reserves.
The government has not taken any decision to award nine offshore blocks to two international oil and gas exploration companies despite offshore bidding over a year ago, sources added.
The US oil and gas giant ConocoPhilips was selected for eight offshore blocks and Irish Tullow for one block under the country’s last offshore bidding round in February 2008.
Both the companies sought to know the government position about awarding of the gas blocks. US Ambassador to Dhaka James F Moriarty recently met with the state minister for power and energy Shamsul Haque Tuku in this regard.
Bangladesh has not signed any PSC for offshore hydrocarbon exploration over the past decade whereas its neighbours India and Myanmar awarded offshore blocks in the Bay of Bengal and discovered large natural gas reserves.
Gas production of the country is between 1870 million cubic feet per day (mmcfd) and 1900mmcfd at the present against the demand of over 1920mmcfd.
The country’s proven gas reserve is now 7.36 trillion cubic feet which would burnt out by 2011 at the present level of consumption, a recent report of Energy Ministry said.
The country’s lone offshore block (Sangu) out of 23 blocks is now contributing 3.0 per cent or 55 mmcfd of the total gas production while the rest of 97 per cent is being produced from the onshore blocks, sources said.
Source: The New Nation , Bangladesh

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